Personally I don't find the wiki page to be a very compelling argument
The positive feedback that I suggest is as stated in my first post: deflation causes currency hoarding, which causes more deflation. To my mind the wiki page doesn't answer this scenario.
People hoard when they have a foreseen cost (or an unforeseen fixed cost) in the future. This is the same as an economy, the economy hoards when there is a cost in the future that needs to be paid for.
If you had a loan, and had to make $10 repayments every day, and the value of the dollar was going up... you would hoard dollars for your repayments. (your repayments don't change if $10 can buy a hat or a car)
If people traded Bitcoin or Gold, they are NOT in debt, so they have no 'fixed repayments' to make in the future. When they hold large am mounts of Gold or Bitcoin we call that saving or investment.
When the value of Bitcoin or Gold go up, people are
FREE TO SPEND IT because they do not need to
REPAY IT. This gives 'negative feedback' so the deflationary spiral doesn't accelerate, but it slows down.
Then the ENTIRE SOCIETY needs to repay MORE than the FLOATING MONETARY SUPPLY is when you see the Deflationary Spiral accelerate. There isn't enough money to go around (as most of the money is locked up in investments), to repay the outstanding debt.
Those who have savings are holding those who are in DEBT to ransom for the repayments of their loans. Becasue fiat money is debt. Every bit needs to be repaid! The only way to repay debt is to take out new debt. Not until new debt has been taken on, or every person has sold all their holdings of money can the debt be repaid....
Fiat Debt based money are Oranges, and Gold and Silver are Apples.
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