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Title: Question on growth and inflation Post by: stan.distortion on April 10, 2013, 10:19:11 PM ...
Title: Re: Question on growth and inflation Post by: myrkul on April 11, 2013, 01:03:20 AM Quote Because if you are not increasing the money supply of a currency, then any increase in productivity will lead to deflation. Simply stated, there is an increasing amount of goods and services chasing a flat supply of money… this means that each coin is worth more than before. From here:http://pandodaily.com/2013/04/10/great-now-engineers-think-that-they-are-economists-too-2/ Its a typical argument against deflation but I don't get it, does this mean "we have to print more money to create profit"? He seems to think that, after all the coins are mined, the economy is mature, and deflation sets in for reals, we'll still be seeing these huge percentages. Which is ridiculous, but OK. Then, he bases all of his arguments on the fact that deflation discourages borrowing. OK. yes, it does. But it also encourages saving. Inflation discourages lending, and saving. tl;dr: bankster shill. Title: Re: Question on growth and inflation Post by: myrkul on April 11, 2013, 01:55:27 AM Quote So, when China manipulates their currency, and we get upset about it, we probably won’t do anything because we fear their giant military and arsenal of nukes. But, it’s unlikely that the engineers behind Bitcoin can provide the same intimidation tactics. The point's still voiced by other followers of the inflatory church though, that inflation is needed for growth but that sounds like profits are only possible by central banks printing them. This recent offshore banks info suggests that's true, extra money has to be printed because it will be stashed away and so be taken out of circulation when it gets to the top of the heap. That would be a valid point, if the money were introduced at the bottom... but it's not, it goes to the special interest groups and contractors. So the bottom half is left to scrabble for an increasingly small pile of leftover scraps.A deflationary currency, while it encourages saving over borrowing, discourages - or at least reduces the impact of - hoarding, 'cause billionaires gotta eat, too. |