The theoretical fiat-currency system I came up with, which I haven't shared with anyone, including you, you believe is not theoretical?
I didn't realize that you were a nutjob and pontificating on something that had no relation whatsoever to the discussion.
Advice on how to debate more effectively is to avoid using fallacies as you have just done:
Ad Hominem FallacyAs you don't even seem to know that basic convention I didn't bother reading the rest of your reply.
For the benefit, however, of any that may be interested in following this line of discussion I'll add one more response I consider important.
I realized where you may be confused as to how deflation can make people richer, and result in more car sales.
I think you have a misunderstanding of deflation as I mean it.
Deflation is a shortage of money supply to the ratio of people in an economic system. Inflation of course is the opposite - an abundance of money supply to the ratio of people, which causes rising prices.
There are two ways to arrive at a shortage of money supply, or deflation... Either more people enter an economic system without corresponding rise in the money supply, OR the number of people stays about the same, but money leaves the system.
In my BoomTown example I'm obviously talking about people entering the system to cause the deflation. However, I think you are talking about what I consider a more unconventional form of deflation: money leaving the system.
Ironically, that's the exact situation we have with the world's dollar based system, which has
become the convention. Generally speaking it's not possible for money to
leave an economic system. The only way that happens is if participants lose the money physically or perhaps bury it with them, mimicking ancient Egyptian kings. Of course that's not to be expected on a widespread basis.
Unfortunately, the dollar based system
does provide another way for money to leave the system. Dollars come into existence as debt; IOUs. Therefore, anytime someone defaults on repayment that money effectively evaporates, disappears, or deflates from the system; it was never really money in the first place.
This form of deflation certainly is to be
supremely feared, and I can see why you would rail against it, because deflation of money that way
takes away wealth with it.
It's also important to note, you can have both forms of deflation happen at the same time, people entering the system and money leaving the system. We experience this in our dollar based system with population growth (birth, immigration, etc.). And you can have deflation and inflation happening at the same time; this is also currently happening in our dollar based system.
Deflation as I mean it does
not remove wealth from the system, and that's why products like cars become more affordable to people.
