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Money is an IOU. It's not a secret that US central bank policy is to devalue those IOUs at a rate of 2% per year in order to artificially stimulate demand for p
by lupire 8mo ago
Money is an IOU. It's not a secret that US central bank policy is to devalue those IOUs at a rate of 2% per year in order to artificially stimulate demand for production.
- b112 8mo agoWhat an incredibly revisionist take on history. For decades before that policy, a policy even the Bank of Canada holds, inflation was crazy high. The 80s saw inflation, in Canada, briefly hit over 20%, and double digit inflation was a regular thing. Everyone decided 2% would be a good rate to aim for, that more control was better, to prevent inflation from flying out of control. Then some dude comes along and tries to spin it like it's a conspiracy to hurt people. Please, read a little history. Please.
- gloryjulio 8mo agoWe can have different opinion on how much inflation is too much. But the universal consensus is that a little bit of inflation is good. It's ok if you think 2% too high. Maybe 1.25% is better. But we cannot just dispute this basic economic model and thinking that 0 or negative inflation (which would cause the stop of investment), or no consensus(that would just cause more chaos) is better. That's just absurd
- ericd 8mo agoThe value of the USD wasn’t monotonically inflating away for most of its history, people were mostly fine? Were those periods disastrous in some way?
- b112 8mo agoYou really, really need to investigate the history of inflation. Really.
- ericd 8mo agoI have. Kind of a hobby interest of mine, actually. https://www.statista.com/statistics/1032048/value-us-dollar-since-1640/ https://www.statista.com/statistics/1032048/value-us-dollar-... If you care to check my claim on it not monotonically decreasing in value. Look at 1776-WW1.