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Saving is not harmful nor beneficial. It all depends on what you do with your savings. If you stuff them under the mattress, saving is harmful. If you invest, t
by sergiosgc 13y ago
Saving is not harmful nor beneficial. It all depends on what you do with your savings. If you stuff them under the mattress, saving is harmful. If you invest, then it's beneficial.
An inflationary currency promotes investment. A deflationary one promotes mattress stuffing. You may draw the conclusion yourself.
- jquery 13y ago> If you stuff them under the mattress, saving is harmful. I don't see how. Isn't this equivalent to a distributed loan to everyone who holds dollars?
- sergiosgc 13y agoIt is unstable. The currency is deflationary by design and the mattress effect effectively reduces monetary mass, creating more deflationary pressure. Up until the point price drops suddenly. It is the poster example of a bubble: artificial valuation, self feeding cycle, disruptable only by change of public perception.