time to exit all cryptocurrencies imo, page-313

  1. 898 Posts.
    "Inflation is theft?"


    If I work and save money, that money has a certain amount of purchasing power. When new money enters circulation, it reduces the value of my own money, because a small fraction of purchasing power is transferred from the old money (My own) to the new money (Those that create the money). This purchasing power is transferred to the people who create the money. I don't understand where your problem is here?


    "Zero inflation would kind of imply that demand, supply, and therefore the price of goods and services within a free market economy is stuck in place and never change, which is ridiculous."


    I agree, that is ridiculous. But I checked the post you were responding to, and didn't find any mention of 'zero inflation'. Zero inflation throughout a free market is also impossible, as inflation doesn't move in unison.


    "2 - 4% is an accepted target by economists worldwide and provides the freedom for prices to move up and down freely in line with market forces."


    Why couldn't it be -2% to 2%, -3% to 1% or -1% to 3%? And you didn't provide a reasoning outside of appealing to the authority of 'economists worldwide', which is a highly subjective construct. I agree on your premise that prices should be allowed to move up and down freely with market forces, but you're philosophically advocating for the opposite by placing someone in charge of the money supply.

 
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