CHS incorrectly equates inflation with price increases, deflation with price decreases, to confirm the belief system of his personal cargo cult (Austrian-inspired pseudo-libertarianism).
I guess this basic misunderstanding of the concepts of inflation and deflation is what caused him to encourage deflation. I mean, the guy actually argues that the price reduction of the PC over the last thirty years is an example of "deflation" when, in fact, the price reduction has nothing to do with the money supply (i.e., it is not a result of monetary phenomenon) and everything to do with wage arbitrage (aka offshoring), increased demand (you know, of that dynamic price setting duo of Supply and Demand), and reduced manufacturing cost due to technological innovation (aka, Moore's Law).
CHS still has a lot of worthwhile things to say regarding social policy, and I even continue to agree with some of his economic solutions, but I can no longer take him seriously as an economics pundit.
