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"How can having your assets increase in value be harmful?" Ponder the implications of bread jumping to an effective price of $25 a loaf. That can and has happe
by Daniel_Newby 15y ago
"How can having your assets increase in value be harmful?"
Ponder the implications of bread jumping to an effective price of $25 a loaf. That can and has happened in deflationary collapses, as the reserve fraction jumps toward 100% (due to credit panic).
- smokeyj 15y agoBy assets increasing in value I was referring to currency, not the cost of commodities. In your story, I would attribute the $25 a loaf bread to the credit panic, not the resultant of a consumers increase in purchasing power -- such as the expected deflation in BitCoins.