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> The truth is, it will work at some point because it must - no one given a choice would choose an inflationary currency all else being equal. That's exactly

> The truth is, it will work at some point because it must - no one given a choice would choose an inflationary currency all else being equal. That's exactly backwards, if one has to choose between the two, both being available, everyone chooses to spend inflationary currency; it should be obvious why and it's a well known truism even: bad money drives out good money. Quite simply, money that retains or increases in value doesn't serve the purpose of money very well and will always lose to money that decreases in value. The purpose of money is to spend it, not save it, it's for trade, not storing as an asset, and money that decreases in value has a built in incentive to be spent and thus better serves its purpose.

CyberDildonics 11y ago
What you are saying only holds up until about 40 years ago. The 2500 years before that contradicts what you are saying. > bad money drives out good money It does not. More ideal money drives out less ideal money. If you knew that one form of money would inflate and another would not, would you transfer to the non-inflationary money or would you spend every last cent of your current money? You don't have to look far to see that what you are saying is ridiculous. Argentina, Venezuela, Zimbabwe etc. are recent examples of national currencies being less than ideal. The only thing preventing Argentina and Venezuela from using US dollars is violence. Zimbabwe eventually converted to US dollars. At the same time, if you took a long view and were going to put away $100,000 in US dollars or $100,000 in gold and you would come back in 100 years to get it, which would you do?
- gnaritas 11y ago
  > What you are saying only holds up until about 40 years ago. The 2500 years before that contradicts what you are saying. A tautology. > It does not. More ideal money drives out less ideal money. See https://en.wikipedia.org/wiki/Gresham%27s_law https://en.wikipedia.org/wiki/Gresham%27s_law > You don't have to look far to see that what you are saying is ridiculous. Argentina, Venezuela, Zimbabwe You're confusing inflation with hyper inflation, a common mistake. > At the same time, if you took a long view and were going to put away $100,000 in US dollars or $100,000 in gold and you would come back in 100 years to get it, which would you do? As I already told you the purpose of money is not to save it, I would not store 100k liquid as cash; cash does not exist to save, it exists to trade. Save assets, not money. Money is a tool, inflation only bothers those who don't understand how the tool works and try and use it inappropriately.

CyberDildonics 11y ago

What you are saying only holds up until about 40 years ago. The 2500 years before that contradicts what you are saying. > bad money drives out good money It does not. More ideal money drives out less ideal money. If you knew that one form of money would inflate and another would not, would you transfer to the non-inflationary money or would you spend every last cent of your current money? You don't have to look far to see that what you are saying is ridiculous. Argentina, Venezuela, Zimbabwe etc. are recent examples of national currencies being less than ideal. The only thing preventing Argentina and Venezuela from using US dollars is violence. Zimbabwe eventually converted to US dollars. At the same time, if you took a long view and were going to put away $100,000 in US dollars or $100,000 in gold and you would come back in 100 years to get it, which would you do?

gnaritas 11y ago
> What you are saying only holds up until about 40 years ago. The 2500 years before that contradicts what you are saying. A tautology. > It does not. More ideal money drives out less ideal money. See https://en.wikipedia.org/wiki/Gresham%27s_law https://en.wikipedia.org/wiki/Gresham%27s_law > You don't have to look far to see that what you are saying is ridiculous. Argentina, Venezuela, Zimbabwe You're confusing inflation with hyper inflation, a common mistake. > At the same time, if you took a long view and were going to put away $100,000 in US dollars or $100,000 in gold and you would come back in 100 years to get it, which would you do? As I already told you the purpose of money is not to save it, I would not store 100k liquid as cash; cash does not exist to save, it exists to trade. Save assets, not money. Money is a tool, inflation only bothers those who don't understand how the tool works and try and use it inappropriately.