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I don’t think you fundamentally understand what I’m saying, fiat money steals from savers (otherwise where does the value of the new money that’s printed come f

I don’t think you fundamentally understand what I’m saying, fiat money steals from savers (otherwise where does the value of the new money that’s printed come from? There’s no free lunch.) and the boom/bust cycle is greatly exacerbated by central banks who can print money at will. There are obviously various strategies that can be implemented to deal with the disaster money situation everhone’s in, but that really has nothing to do with what I’m saying or why a hard money standard is superior to fiat.

arcticbull 8y ago
No, it doesn't blanket hurt savers because they don't tend to save just piles of cold hard cash. Increasing inflation benefits holders of equities and commodities (yes, like gold, which again, you're free to invest in). Holders of fixed-rate debt benefit too. Yes, those who hold cash and long-term bonds are affected negatively, and so are holders of variable-rate debt. However, you can hedge against that with an appropriate investment strategy. [1] These are exactly the kinds of things you should know as you begin investing, or defer to a financial advisor or a roboadvisor. Yes, they could "print money" at will (it's not like they just run over to the Epson and hit Print, they don't even have the authority to create money, that's done by the Treasury). However, the Fed's goal is to keep inflation at 2% per year. This is hardly the hellscape you make it out to be. Here's a full write-up explaining what's actually happening out there [2]. [1] https://www.bankrate.com/investing/winners-and-losers-if-inflation-skyrockets/ https://www.bankrate.com/investing/winners-and-losers-if-inf... [2] https://seekingalpha.com/article/4113280-federal-reserve-never-printed-money-part https://seekingalpha.com/article/4113280-federal-reserve-nev...
- sbenitoj 8y ago
  Where does the value of newly printed money come from — is it a free lunch (in which case, why not print quadrillions and make everyone a millionaire) or does the value come from savers (in which case it’s stolen from them by debasing the value of their savings)?
  - arcticbull 8y ago
    Why are they saving money (a medium of exchange) and not assets (a store of value) like gold as you suggest? It's a regular haircut for unproductive capital. It's a punishment for not investing. It comes from people who don't put their money to work, and it comes from people who issued fixed-rate debt as an investment. It's a risk they specifically took on. All this was covered in the linked articles. Inflation is a constant (small) pressure to keep money moving.
    - sbenitoj 8y ago
      Why is inflation (the government printing money) legal but me counterfeiting $100 bills and passing them off a legit illegal and considered theft?
      - arcticbull 8y ago
        Because government is an extension of all the people, and the government doing it is the people’s will. You doing it is not an extension of the people’s will, and prohibited by law (again, the people decided that). For the same reason throwing people into prison for committing crimes isn’t against the law but when you lock someone in your basement, you go to prison. This is basic civics. You keep dodging the question, over and over, it’s getting old.

arcticbull 8y ago

No, it doesn't blanket hurt savers because they don't tend to save just piles of cold hard cash. Increasing inflation benefits holders of equities and commodities (yes, like gold, which again, you're free to invest in). Holders of fixed-rate debt benefit too. Yes, those who hold cash and long-term bonds are affected negatively, and so are holders of variable-rate debt. However, you can hedge against that with an appropriate investment strategy. [1] These are exactly the kinds of things you should know as you begin investing, or defer to a financial advisor or a roboadvisor. Yes, they could "print money" at will (it's not like they just run over to the Epson and hit Print, they don't even have the authority to create money, that's done by the Treasury). However, the Fed's goal is to keep inflation at 2% per year. This is hardly the hellscape you make it out to be. Here's a full write-up explaining what's actually happening out there [2]. [1] https://www.bankrate.com/investing/winners-and-losers-if-inflation-skyrockets/ https://www.bankrate.com/investing/winners-and-losers-if-inf... [2] https://seekingalpha.com/article/4113280-federal-reserve-never-printed-money-part https://seekingalpha.com/article/4113280-federal-reserve-nev...

sbenitoj 8y ago
Where does the value of newly printed money come from — is it a free lunch (in which case, why not print quadrillions and make everyone a millionaire) or does the value come from savers (in which case it’s stolen from them by debasing the value of their savings)?
- arcticbull 8y ago
  Why are they saving money (a medium of exchange) and not assets (a store of value) like gold as you suggest? It's a regular haircut for unproductive capital. It's a punishment for not investing. It comes from people who don't put their money to work, and it comes from people who issued fixed-rate debt as an investment. It's a risk they specifically took on. All this was covered in the linked articles. Inflation is a constant (small) pressure to keep money moving.
  - sbenitoj 8y ago
    Why is inflation (the government printing money) legal but me counterfeiting $100 bills and passing them off a legit illegal and considered theft?
    - arcticbull 8y ago
      Because government is an extension of all the people, and the government doing it is the people’s will. You doing it is not an extension of the people’s will, and prohibited by law (again, the people decided that). For the same reason throwing people into prison for committing crimes isn’t against the law but when you lock someone in your basement, you go to prison. This is basic civics. You keep dodging the question, over and over, it’s getting old.