You probably never heard of deflation too many times in your life either!

Social security benefits are probably going to be frozen next year for retiree and non-retiree benficiaries.
This is the first time this has happened since indexing started about 30 years ago.

Based on the index, there would be about a 2 or 3% reduction in benefits next year, except for a stop loss provision in the indexing law. However, retirees who participate in medicare will see a reduction in their checks after the increase in medicare premiums is deducted.

Of course things will change when the economy picks up, and the expected (hyper?) inflation from massive government deficits takes hold, and after the Fed raises interest rates (from nearly zero for the Fed funds rate).

Investors beware of fixed rate securities (including treasuries and municipal) which would lose significant fraction of their present market value in such a scenario!

Peace and love all.