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> 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?
by 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.