I realize that we have inflation because private banks create credit, though I disagree that we would see increased volatility if it were not for central banks. The volatility we see in stock markets, commodities prices, real estate prices are exactly because of our monetary system. Houses rising 10% per year isn't price stability. Without a centrally managed currency I think we would, after a settlement period, see more stability, without the opaque interference of a central bank.
I am only referring to the inflation rate, not the economy as a whole. Obviously inflation rate targeting doesn't work well for very much other than keeping the (CPI) inflation rate reasonable. You made the assumption that because the inflation rate stays low every year that the deflation rate could stay low every year in an unmanaged money supply.
Several Japanese corporations have chosen to buy out foreign firms because of their increased financial strength. Off the top of my head I can think of Sony buying ST Ericsson's half of SonyEricsson, and a large Swiss pharmaceutical company was recently taken over by a Japanese counterpart.
As I said, they are not going on a spending spree
in Japan.
Again, I'm not talking about bitcoin here. If people "leaving the currency" isn't a sign of endorsement I don't know what is. The entire purpose of money is to leave it when you feel you have too much, and increase your holdings when you feel you have too little. That's the very reason we use money.
I thought you are supposed to invest when your time preference is low. Leaving your currency for another because of a recent appreciation trend is just a zero sum transfer of wealth. Your original currency depreciates, the new one appreciates. Nobody is better off except for those that know when, or got lucky, to ride the wave at the right time. But if you control a significant portion of a money's supply, the ability to create these waves is much easier and makes recycling money via investment much less appealing. Perhaps most of the waves are just by bad economic luck, but the opportunity for easy wealth transfers is much more prominent with a deflationary money. Central banking was supposed to stop this, I guess?? At the nice return to banks of being able to create credit from thin air. But then the problem
still happens because banks control 90% of the money supply and the fed creating more and giving it to them doesn't do anything.
