Isn't deflation a bad thing?

[Galahad]

Isn't deflation a bad thing?

NO

Good contribution!

[rigel]

Why are we talking about deflation?

Deflation can happen if bitcoins completely replace dollars, euros... I don't think this will ever happen.

[knight22]

The problem is more the debt base currency rather than inflation itself.
A debt base currency is forcing the society to produce crap and garbage contently to pay back our never ending and growing debt.

[hellfrozenow]

The thing is debt based currency works longterm only with inflation.

[knight22]

The thing is debt based currency works longterm only with inflation.

Debt based currency is flawed in longterm. That is why we have economic crisis, this is too much unstable.

[marcovaldo]

Debt based currency is flawed in longterm. That is why we have economic crisis, this is too much unstable.

And what do you propose if you want to buy a car, house, ... ?

[knight22]

Debt based currency is flawed in longterm. That is why we have economic crisis, this is too much unstable.

And what do you propose if you want to buy a car, house, ... ?

The same way people bought house before banks was invented

[hayek]

Deflation is a good thing. It means wealth is being created.

You want deflation. It's easier to solve the $.01 = the cost of a ferrari than it is to solve the $100,000,000 = a loaf of bread problem.

[marcovaldo]

Deflation is a good thing. It means wealth is being created.

You want deflation. It's easier to solve the $.01 = the cost of a ferrari than it is to solve the $100,000,000 = a loaf of bread problem.

Why would it be a problem if bread costs $100,000,000?
Everyone would have more much than that, and you can pay with a credit card.

[knight22]

Why would it be a problem if bread costs $100,000,000?
Everyone would have more much than that, and you can pay with a credit card.

Watch the vids in my signature

[marcovaldo]

Watch the vids in my signature

I'm sorry but I don't understand English.
It's not my native language, and I can read or write a little bit of English, but I can't understand a video without subtitles.

[cryptoanarchist]

Yeah, cheaper prices are bad.

<facepalm>

[knight22]

Watch the vids in my signature

I'm sorry but I don't understand English.
It's not my native language, and I can read or write a little bit of English, but I can't understand a video without subtitles.

Which language do you speak? these videos has been translated in a lot of languages

[marcovaldo]

Yeah, cheaper prices are bad.

<facepalm>

Lol you made my day if you are serious

Which language do you speak? these videos has been translated in a lot of languages

French

[knight22]

Which language do you speak? these videos has been translated in a lot of languages

French

Here

http://www.dailymotion.com/video/x75e0k_l-argent-dette-de-paul-grignon-fr-i_news
http://www.youtube.com/watch?v=mC9rpRa8zlw

[marcovaldo]

Ok, I watched the first video, but I don't see the problem. For me, it's just fine. The only thing is that the government is borrowing money instead of creating it himself. But it still can delete his own debt or make a law to fix it, and regulate the bank's profit. I don't think that the whole system is wrong, but just maybe it needs more regulation. 

[knight22]

Ok, I watched the first video, but I don't see the problem. For me, it's just fine. The only thing is that the government is borrowing money instead of creating it himself. But it still can delete his own debt or make a law to fix it, and regulate the bank's profit. I don't think that the whole system is wrong, but just maybe it needs more regulation.  

Yea but it will never happen. Banks rule governments for centuries because they own the money printing machine and governments are way too corrupted to do anything about that.

And for you it is just fine that private entities are creating money out of thin air to enslave people with debt?

[marcovaldo]

And for you it is just fine that private entities are creating money out of thin air to enslave people with debt?

They are not creating money out of thin air. They are creating it from a pledge that it will be paid back with interest.
And I can't see how it enslave people. You are free to no borrow anything.


Let's assume you have 1 000 usd per month to live.
Do you prefer to buy a nice and big house that you can give to your child when you die? (you just need to pay 500 usd per month for 40 years to the bank)
Or do you prefer to rent a small flat for 500 usd per month because you don't have enough money to buy a house? And when you die, your child has nothing

[knight22]

And for you it is just fine that private entities are creating money out of thin air to enslave people with debt?

They are not creating money out of thin air. They are creating it from a pledge that it will be paid back with interest.
And I can't see how it enslave people. You are free to no borrow anything.


Let's assume you have 1 000 usd per month to live.
Do you prefer to buy a nice and big house that you can give to your child when you die? (you just need to pay 500 usd per month for 40 years to the bank)
Or do you prefer to rent a small flat for 500 usd per month because you don't have enough money to buy a house? And when you die, your child has nothing

I'm not speaking at an individual level but at a collective level. The society has no choice to have 100% of its money supply to be debt.
No choice = slavery
Nothing less, nothing more.
But unless you admit this to yourself you will never understand that this is a real problem. You are probably living in a magic world full of elf, leprechaun and colourful balloon.

[sidhujag]

Yes deflation only is a bad thing but controlled inflation/deflation is very good! With deflation banks would not lend and we would crash via the great depression. With inflation we collapse under interest payments. I like the crypto's that are not capped to a limit but have infinite limit (inflationary) but only allowed to create certain number of coins per year (deflationary)... with this in mind we can achieve some sort of equilibrium of demand/supply where you wouldn't have people waiting to buy and you wouldn't have people eager to sell on each end of the spectrum respectively. Allowing bitcoins to be more divisible is not a solution as it does nothing to avoid any deflation statistic, this is from those who don't understand the economic side of things.