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> This is why in any downturn, the central bank response to deflation is to increase the money supply. By making money cheaper, they're encouraging people to ta

> This is why in any downturn, the central bank response to deflation is to increase the money supply. By making money cheaper, they're encouraging people to take advantage of cheaper asset prices. This in turn, spurs demand. This ignores the astronomical losses from our fractional banking system. Pretty much every 40 years we get a crash and print our way out of it, giving ever more money to the core of the system. (Trickle-down, or too-big-to-fail, both were rewards simply for being the entrenched players.) The USD has lost 95% of its value. Perhaps for the "economy" (... of bankers who defraud us) inflation is good, but for the common man fraud is worse and fiat is the enabler, not the solution. Sure, there's a problem having a fiat system is good for but there's a huge gulf between "Fixes problem X" and "Performs better across all scenarios".

Mikeb85 11y ago
> This ignores the astronomical losses from our fractional banking system. Pretty much every 40 years we get a crash and print our way out of it, giving ever more money to the core of the system. Take a look at some very long term (100 year) GDP charts. The economy is far less volatile today than ever before. While there are culprits, the fractional banking system isn't necessarily one. > Trickle-down, or too-big-to-fail, both were rewards simply for being the entrenched players. These are the results of a corrupt system, not because of the existence of fiat currency or central banks. > The USD has lost 95% of its value. And you make 20 times more of it. > Perhaps for the "economy" (... of bankers who defraud us) inflation is good, but for the common man fraud is worse and fiat is the enabler, not the solution. Please, there was theft and fraud when we were trading piles of grain and goats.
- EdHominem 11y ago
  > These are the results of a corrupt system, not because of the existence of fiat currency or central banks. Without the ability to print money we wouldn't have to wish for a unicorn - a non-corrupt system. The banking/mortgage problem in 2008 only happened because everyone involved knew we'd bail them out, because we could. Whereas if we couldn't we'd have recovered the lost funds from the guilty parties. The existence of an easy out practically guarantees that the government will take it. > And you make 20 times more of it. And what you had from before is nearly worthless. Yes, inflation keeps people on their toes because they need to work today to eat today, but I'd keep you on your toes if I stole your car too, you'd have to really be productive to break even! That's a broken window fallacy with the twist of slightly breaking everyone's window. As a currency, fiat is an absolutely stupid idea. So stupid that they had to make specie ownership illegal to force people to play along. Yes, I understand it gives the country great options. But so does conscription... > Please, there was theft and fraud when we were trading piles of grain and goats. Only fiat inflation lets a thief steal from everyone simultaneously. And thanks, but that's not really an answer anyways. I don't care that someone is always willing to steal from me, I care when the law says I can't attempt to avoid it.

Mikeb85 11y ago

> This ignores the astronomical losses from our fractional banking system. Pretty much every 40 years we get a crash and print our way out of it, giving ever more money to the core of the system. Take a look at some very long term (100 year) GDP charts. The economy is far less volatile today than ever before. While there are culprits, the fractional banking system isn't necessarily one. > Trickle-down, or too-big-to-fail, both were rewards simply for being the entrenched players. These are the results of a corrupt system, not because of the existence of fiat currency or central banks. > The USD has lost 95% of its value. And you make 20 times more of it. > Perhaps for the "economy" (... of bankers who defraud us) inflation is good, but for the common man fraud is worse and fiat is the enabler, not the solution. Please, there was theft and fraud when we were trading piles of grain and goats.

EdHominem 11y ago
> These are the results of a corrupt system, not because of the existence of fiat currency or central banks. Without the ability to print money we wouldn't have to wish for a unicorn - a non-corrupt system. The banking/mortgage problem in 2008 only happened because everyone involved knew we'd bail them out, because we could. Whereas if we couldn't we'd have recovered the lost funds from the guilty parties. The existence of an easy out practically guarantees that the government will take it. > And you make 20 times more of it. And what you had from before is nearly worthless. Yes, inflation keeps people on their toes because they need to work today to eat today, but I'd keep you on your toes if I stole your car too, you'd have to really be productive to break even! That's a broken window fallacy with the twist of slightly breaking everyone's window. As a currency, fiat is an absolutely stupid idea. So stupid that they had to make specie ownership illegal to force people to play along. Yes, I understand it gives the country great options. But so does conscription... > Please, there was theft and fraud when we were trading piles of grain and goats. Only fiat inflation lets a thief steal from everyone simultaneously. And thanks, but that's not really an answer anyways. I don't care that someone is always willing to steal from me, I care when the law says I can't attempt to avoid it.