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A better idea, in my opinion, is rebasing the currency, to some form of standard like gold - and ceasing to print pretend money, that only results in currency d
by paleface 3y ago
A better idea, in my opinion, is rebasing the currency, to some form of standard like gold - and ceasing to print pretend money, that only results in currency deflation, and retail inflation.
- damiankennedy 3y agoA gold standard would lead to deflation. Noone wants to get an annual 2 to 5 percent paycut while paying interest on a mortgage on a house that goes down in value every year.
- paleface 3y agoYou’re going to have to clue me in, to what it would be deflating?! The word is like a decibel, in that it needs some reference marker… With the currency pegged to a standard, a penny would actually have more value, than it does now. I disagree on your mortgage point. The whole reason for rebasing to a standard, is to avoid those issues. Where I think the rub is for most people, is they’d have to disavow themselves of the notion, that a property should go up in value.
- FredPret 3y agoWe can't mine enough gold every year to keep up with the rest of the economy. To put it another way, if gold was money, there wouldn't be enough new money every year to buy all the stuff we come up in a year. By decreeing gold to be money and money to be gold, we would be interfering with the market in a major way: artificially giving the value of gold a massive boost and cutting the value of all other things.
- jetpackjoe 3y ago> a penny would actually have more value, than it does now. That's literally deflation.
- bigstrat2003 3y ago> Noone wants to get an annual 2 to 5 percent paycut... I already get annual pay cuts thanks to inflation.
- bigstrat2003 3y agoIt would be too painful for people to have the currency lose all that value at once, but we certainly need to do something. Fiat currency has proven to be a horrible mistake.