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This argument fails. Dollars are to be used, not hoarded. Modest inflation encourages use of the currency. This is good. As far as an argument from authority,
by SubiculumCode 6y ago
This argument fails. Dollars are to be used, not hoarded. Modest inflation encourages use of the currency. This is good.
As far as an argument from authority, I'll take the Fed than random HN commenter. In any case, inflation is well controlled, perhaps over controlled, except for certain products with very real limits to production and supply (i.e. housing).
- tastyfreeze 6y agoIn any other field we see the same thing happen exactly the same way 20 time we assume it to be a hard rule until proven otherwise. For some reason with economics every government comes along and thinks they can guide the beast when no one has ever done so in history. I refuse to believe that a currency having 1/6 the buying power over 50 years is a good thing. Yet, under 150 years of gold standard the dollar maintained the same purchasing power. Inflation does encourage spending. But, it also discourages saving. Everybody wants to get rid of their paper before it becomes worth less. Saving is a healthy part of an economy.
- SubiculumCode 6y agoHistory is not a controlled experiment. The context changes with each iteration. We understand more about how currencies work than ever before. If you want a long term store of value, choose a commodity, or gold I guess.
- tastyfreeze 6y agoAll I hear with your argument is "its different this time" and "we know better than everybody before". Anyway, I have been divesting my savings from USD to prepare for the coming dollar collapse.