Bitcoin Forum

Brazils is having a high interest rate, high inflation and low gdp growth

http://www.marketwatch.com/story/why-brazils-currency-is-having-a-real-tough-time-2015-03-27

This again proved, inflation and deflation has nothing to do with economy, there are many other factors more important than these small parameters

The core difference between bitcoin and fiat money is that you can not create bitcoin without putting in real resources and valuable assets, not inflation or deflation

I think inflation or deflation today has so small affect on economy that they can be ignored comparing with other factors like international trading and currency exchange rate

"Economic growth in Brazil, a major exporter of crude oil, soybeans and iron ore, has been hurt by falling commodity prices. "

After FED stopped QE, USD moved out of raw materials, those commodity export countries got hit. Their income dramatically decreased. Their central banks tried to expand money supply but that just reduced their currency's exchange rate, and make import more expensive, thus the dramatic raise of price of many imported goods. Brazil and Russia are typical example

Today, when all the large economy depends on export/import, and currency exchange rate can jump by 20-30% during a year, a couple percent of inflation/deflation has no significant impact on economy

Only those country that do not run international trade are not affected by external factors, but it is extremely rare now. Even a large country like China have to export labor in exchange for investment (But their currency is not free trade on Forex)

The US govt has been misleading the citizenry about what the true inflation rate is here by not factoring in food and other prices that continue to soar. For instance, from everything to sugar, ground beef, pork, steak, chicken, milk, soybeans and many other things, there has been 5-15% increases since last years prices which is bad news when wages have been stagnant and the only jobs coming back have been minimum wage, part time and seasonal positions.

Read the articles of Varoufakis to understand why gold standard is wrong.

So, it won't affect BTCitcoin?
Is it Good or Bad?

Exactly, the newly created money were used to speculate on petroleum, raw material and assets, raised production cost, but did not increase the income of the lower middle class in any meaningful way

There is no good solution for technology unemployment in a pure market driven economy: People who have the money will spend in the area that they are most interested, not to generate more jobs. Even we are using gold as currency, that would still happen

Henry Ford: "People of the nation do not understand our banking and monetary system, if they did, I believe there would be a revolution before tomorrow morning and bitcoin to the moon."

This

They need some very simple and intuitive slides or video that can explain the whole thing in a couple of minutes. So far Mike Maloney's work is best, but still take lots of effort to grasp since he blended the concept IOU in his explanation. Once IOU is involved, most of the people start to lose their financial direction