An apple is an apple, and there is no reason why it should cost more next year than right now. That's what some people think.
Those people should buy apple futures.
But if bankers increase money supply to counter production improvement, isn't that a theft of consummers, who otherwise would have benefited from this improvement of productivity ? Isn't that also a theft of the producer, whose products gets to be at the same price although he had increased his productivity ?
It's not theft, because if you agree to use a mint's currency you implicitly accept the possibility of them printing new money at their discretion. It would only be theft if they were contractually bound to refrain from printing money. The central bank doesn't force you to use legal tender. It's your choice.
Who on earth are those guys who get to decide what should be the price of the things we produce and consume ?
That's right. We should be able to decide ourselves.
Hedging doesn't seem to be part of our everyday culture though. For instance, every time I go to some social gathering, inevitably there will be someone there who complains endlessly about rising petrol prices. (it's odd that this person never cheers when petrol prices go down, he only moans when they rise).
But they never actually DO anything. If you care so deeply about keeping your petrol costs stable for the next 10 years I am sure it's not hard to find some financier who will offer you a hedge. But people just moan instead and demand that government does it for them.
or perhaps buying petrol futures is too impractical for joe average?