3 ms·
The central bank does not have direct control over the money supply. In any case even, money supply growth is not synonymous with inflation. Only when it is out
by gph1 15y ago
The central bank does not have direct control over the money supply. In any case even, money supply growth is not synonymous with inflation. Only when it is outpacing the productive capacity of the economy to absorb it can increases in the money stock produce inflation. Given the slack in the economy right now, demand driven inflation is near the bottom on our list of worries. Take off the tin foil hat.
- maeon3 15y agoI agree that inflation is not a problem, I just want a currency where I can place claims on future human labor in, and in 15 or 30 years get the exact same number of claims on future human labor back out. Today and for the last 97 years since we have been off the gold standard, the us dollar is unable to accomodate my wish. If I put in 100 dollars now, in 30 years I will not be able to buy a single pencil with it, even if I put it in an account that accrues interest, after 30 years I would be able to buy two pencils. Just like how in 1995 gas was 80 cents, now it is four dollars. Inflation at 3 percent per yeiar is a joke, in gas and heating oil it is 10% per year. My only wish is to keep the wealth I earn. Ultimately money is just a contract between two humans, one human can always steal the wealth of the other by fiddling with the numbers.