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by carlosjobim 170 days ago
That argument comes from an ancient list of arguments against gold. But nobody seems to be able to explain why that would matter at all. There doesn't need to be any correlation with the amount of currency and the economic output. And there has never been any such correlation, including right now with the dollar or any other currency.
1 comments
immibis 169 days ago
If you want an economy to prosper the currency value has to remain stable. That means it has to scale with economic output. You can, of course, not do that, if you want to kneecap yourself.
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carlosjobim 169 days ago
Both the dollar and the euro have lost 70% of their value in the last 20 years. Most other currencies more than that.
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quickthrowman 169 days ago
OK, now do dollar-denominated assets. Stocks, bonds, commodities, real estate. How have those fared over the same time period? Those types of assets are where I put my money for long-term savings.

Only idiots that don’t understand inflation hold lots of cash, bringing that up is a strawman. Cash is not a store of value, it’s a unit of exchange and unit of account. Again, cash is not for saving, it should be used to purchase assets if you want to create long-term wealth.

Inflation is a tool used to encourage people to spend or invest their money instead of hoarding it. By spending it or investing it in dollar denominated assets, economic activity and GDP increased. Hoarding cash doesn’t help anyone.

Have you ever considered that perhaps your ideas about the monetary system are wrong?

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carlosjobim 169 days ago
There is no reason for me to take you seriously, since you're resorting to just being aggressive, calling people idiots, and so on.

So you can take that as you're being right and me not having any arguments against your superior intelligence, which you certainly will think.

But I don't give any value to what you say or believe. There is no productive conversation to be had with you.

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immibis 169 days ago
If you think 3% inflation is bad, wait until you see what happens when you don't have it. The value of money has to decrease or it won't circulate - see Bitcoin.
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