LOL. If the official number is 73.5%—what are real-world cost of living prices in Turkey now?
For comparison, the U.S. ridiculously claims that USD inflation was, what, 7% in 2021? Are Turkish stats more honest than American stats?
Jeez, hasn’t poor mindrust suffered enough already?
If
divine Bitcoin punishes those who leverage it on exchange margin accounts, imagine what it does to those who
intentionally dump it in a panicked belief that it was actually going to zero.
What about your government-issued altcoin going to zero?
Inflation is the most unfair of the taxes. It's regressive, it huts lower income the most, as they have larger portions of their expenses exposed to rise in prices.
Richer people have probably less impact, as they can consume less of their disposable income, and invest the difference in (sort of) inflation resistant assets.
More than that:
Rich people enjoy the benefits of debt. Inflation favors indebtedness. The system is rigged so that debt is
extremely destructive to those with inadequate capital, but those with high capital and good access to the system can profit from borrowing money. For those in a position that is favored by the way the whole system is set up, it is
stupid not to be in debt!
That was a part of my thinking that got me in trouble. I was trying to outsmart the system—to find clever ways to get the benefits of debt, when the system is stacked against me. Compare my earlier discussion with Jay about Saylor’s use of debt to buy Bitcoin. For him, that’s just savvy. For me, it was catastrophic: I thought I was being clever, but I was only finding creative ways to make all of the usual newbie mistakes. I managed to stabilize it for awhile, and to hang on for much longer than a newbie could have; but after months of personal torture over this, I eventually lost most of my money anyway.
Inflation punishes savers, deflation punishes producers—that is Econ. 101. To Keynesians, et al. (or worst of all, NMT lunatics), punishing savers is a feature, not a bug: They call saving “hoarding money”. Deflationary money is obviously a great store of value, and it makes for a sound reserve currency; the problem arises when some deflationary-money enthusiasts stick their heads in the sand about the well-known, entirely uncontroversial problems with deflationary currencies, while they hypocritically continue to use inflationary, centralized, permissioned altcioins (“fiat”) both directly, and as a unit of account. I mention that because I think it’s no less than an historical tragedy that the whole concept of decentralized, permissionless
price-stability has now been unfairly trashed by the actions of a scammer with a centralized blockchain.
(P.S., Jay, that relates to something I said earlier, which I think was misunderstood in your reply; I will try to circle back to that sometime.)
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