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That's why I dislike the currency = proxy for goods and services. It seems more accurate to say it's debt. When a person has earned/acquired currency it does n

That's why I dislike the currency = proxy for goods and services. It seems more accurate to say it's debt. When a person has earned/acquired currency it does not mean anything. Proxy for goods/services only goes so far as someone accepts it. Debt feels more accurate because in order to be debt someone must owe. Collectively our society has agreed that we will exchange currency as debt. A debt that someone else will desire to exchange goods/services for. This guarantee is enforced by the central banking system. "Saving" makes much more sense when you view it as collecting debt for the future. It's in the Government's and banks best interest to inflate the currency to limit the repayment of your debts.

rayiner 14y ago
The debt analogy obscures the physical nature of whats happening. Its non-intuitive how to conceptually separate the value of debts from notions of money. Though it does clarify that someone in the future must be on the other side of the transaction.
eli_gottlieb 14y ago
"Saving" makes much more sense when you view it as collecting debt for the future. It's in the Government's and banks best interest to inflate the currency to limit the repayment of your debts. Other way around: inflation devalues existing debts. A small, predictable inflation is a little economic rule that says, "Actual goods and services today are this percentage better than a mere promise of goods and services one year from now." This sounds like it's immoral, in a way, encouraging consumption and profligacy. But of course, your consumption is someone else's sale; what it really encourages is the production and sale of actual goods and services that hold value better than money (anything from steel to apples to video games). Predictable inflation is a check and balance on the otherwise-natural tendency of capitalism to eat itself by valuing capital assets above all else.
- pjzedalis 14y ago
  I don't disagree. Some get upset about governments and banks "printing money." My point was they are not upset/concerned to do so as it benefits them.
  - maeon3 14y ago
    if printing money without earning it and collecting on those debts were a good thing for the economy then it wouldn't be a problem if everyone did it. it'll help stimulate the economy if i print up some 100 dollar bills. yeah! why are people getting bent out of shape because of my contribution to productivity?

rayiner 14y ago

The debt analogy obscures the physical nature of whats happening. Its non-intuitive how to conceptually separate the value of debts from notions of money. Though it does clarify that someone in the future must be on the other side of the transaction.

eli_gottlieb 14y ago

"Saving" makes much more sense when you view it as collecting debt for the future. It's in the Government's and banks best interest to inflate the currency to limit the repayment of your debts. Other way around: inflation devalues existing debts. A small, predictable inflation is a little economic rule that says, "Actual goods and services today are this percentage better than a mere promise of goods and services one year from now." This sounds like it's immoral, in a way, encouraging consumption and profligacy. But of course, your consumption is someone else's sale; what it really encourages is the production and sale of actual goods and services that hold value better than money (anything from steel to apples to video games). Predictable inflation is a check and balance on the otherwise-natural tendency of capitalism to eat itself by valuing capital assets above all else.

pjzedalis 14y ago
I don't disagree. Some get upset about governments and banks "printing money." My point was they are not upset/concerned to do so as it benefits them.
- maeon3 14y ago
  if printing money without earning it and collecting on those debts were a good thing for the economy then it wouldn't be a problem if everyone did it. it'll help stimulate the economy if i print up some 100 dollar bills. yeah! why are people getting bent out of shape because of my contribution to productivity?