Why people have the mentality of inflation being a negative thing? Huge inflation is negative. But we need minor inflation.
Simple:
I go to work, and per one
hour, I get
X EUR.
Since I do not want to take loan or something, I want to save up , for example, 20000 "
X"'s (10year wage)
but since there is INFLATION, I am losing on my day1 save of 8 "
X"'s approx 1.03^10 , which means, my 8X will buy only 5X or so with 10 year difference.
Since the thing I want (say a yach or something, doesnt really matter at all) is very expensive, therefore 10year wage, no loan, just cash. How to beat inflation? Risking stocks? Bank deposits?
This is scam. People will spend even with 0% inflation.
You said, one car today, two cars in months. That's extreme deflation that will never happen. I don;t want deflation, but nor 3% inflation.
How would you solve my 20000 hour wage item I wish to buy without loan/margin?
please elaborate, thanks
![Smiley](https://bitcointalk.org/Smileys/default/smiley.gif)