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I understand their motivation - just like I understand Hitler's motivations. Hoarding cash is extremely bad from a macro-economical standpoint. The govt should
by wrong_variable 10y ago
I understand their motivation - just like I understand Hitler's motivations.
Hoarding cash is extremely bad from a macro-economical standpoint. The govt should be alarmed of this type of development.
There is a reason why we need 2% inflation - it is to push people with money to spend it or risk loosing its value. Its what keeps the economy churning and keep people employed.
This massive cash hoard is essentially one entity holding on to all the gold in the kingdom - resulting in deflation in the rest of the economy.
These companies are waiting for a disruption, and will just use their cash hoard to buy the company that threatens their monopoly ? How is this not a massive issue of anti-trust ?
- partycoder 10y agoGodwin's law kicked in again. I am impressed how it makes its way into every discussion.
- HillaryBriss 10y agoadditional benefit of inflation: it makes existing debts easier to pay as time goes on, thus reducing the probability of a default (or a large collection of simultaneous defaults). that is, a small positive inflation rate is good because it means we aren't having deflation, which makes debt harder to pay off.
- HillaryBriss 10y ago> it is to push people with money to spend it or risk loosing its value. and yet, what these big, very smart companies are doing is not investing. they're just sitting on it. it seems a positive inflation rate, as an economic growth strategy for a nation, can only do so much. it's also helpful if companies and investors actually see some enterprises or industries worth investing in, or worth creating from thin air, in the current economic environment.