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I find the "Free Silver" movement fascinating because it sheds a light on how much we take our current economy for granted. Before I started to read about econo
by DubiousPusher 8y ago
I find the "Free Silver" movement fascinating because it sheds a light on how much we take our current economy for granted. Before I started to read about economics on my own I heard many times about the evils of easy credit and inflation but never had I heard about the problems of deflation and scarce money.
- anonymous5133 8y agoYup and thankfully now we have so many different money systems that one can decide where to keep their value. People need not keep cash under the mattress if they dont want to. You can hold scarce assets that appreciate over time and only hold inflationary fiat when you need to purchase something. Thus you will never be pressured to spend all your money because most of your "money" isnt being held in inflationary assets. We are told that inflation is good because it encourages spending but i would argue that such an effect is being dimished because many deflationary assets are traded on liquid markets.
- philwelch 8y agoThat's kind of the point, right? Inflation encourages spending, but it also encourages investment, and your saved money can be invested in stocks and bonds, which also stimulate economic growth more than being stuffed in a mattress.
- walshemj 8y agoThe crash of property prices in Japan recently is an example of deflation in action and its long lasting negative effects.