the best solution would be human extinction.
Would the ideal currency have a fixed supply or a small amount of inflation?
Luke Thompson
Brody King
the current moment is a perfect illustration. if all assets are falling you want to sell them. this is essentially investing in cash, longing cash.
> no one or any economy should be encouraging people to invest in the currency itself because it becomes a self defeating circle jerk and ruins the whole system for everyone.
could you elaborate it?
Aiden Nguyen
like the state run TSP (military retirement account) that ran out of money when people in houston took emergency withdrawals for hurricane harvey? That kind of state run fund?
Jacob Perry
Because currency derives it's usefulness from being able to be used in transactions but if everyone hodls their stacks of cash then we run out of money to conduct actual business. And sure at first you might realize a jump in value of your cash but if the trend is systemic then the general market will abandon your currency in favor of another more available one and now the currency is worthless because it's no longer being used as a tool for transactions.
Julian Lee
> if X1 failed it means every Xn will always fail
private funds don't fail or what are you trying to say here?
Gavin Turner
> currency derives it's usefulness from being able to be used in transactions
the cash you hodl is still able to be used in transactions. this quality of it doesn't go anywhere if the cash is holded. this quality is always potential
> but if everyone hodls their stacks of cash then we run out of money to conduct actual business
this is impossible, some amount of money is always going to be in circulation and prices will just adjust to this amount
> then the general market will abandon your currency in favor of another more available one
total bullshit. if inflationary = available then why isn't zimbabwe dollar the most popular currency in the world?
who brainwashed you into all of this?
David James
>ck hoarders spend your money you greedy niggers. Keep the velocity high!
The fact that kikes and their golems (you) want an inflationary currency in part to force everyone to invest (no matter how bad it is for them) should be widely known.
Owen Green
I agree with this so probably my opponent deserved this (You), not me. Fuck kikes and their inflation and their you must consoom and live paycheck to paycheck to make us all rich by producing useless shit for you.
Adrian Bell
So we have a disagreement about definitions. Think about it this way, the nascent fiat economy, at first a small collective of scheming Jews, found a way to steal all of its competitors’ customers. It doesn’t matter what your definition of competition is, they ended up with the customers and their mitts on the productive capacity of the entire world. Their currency, as flawed as it is, presided over and contributed to the most rapid periods of growth in history. The fiat economy effectively won against the best sound money economy of its day, and people who invested in the opportunities that it created, most of which involved exploiting the inflation mechanism, became disgustingly wealthy. I’m not a proponent of fiat by any means. I’m telling you not to be an ideologue so that you can figure out the opportunities that currency with x,y,z parameters present.
Quality post, thanks user.
Cooper Powell
>this quality doesn't go anywhere if you hodl
Wrong. If you don't use it you lose it. If the quality isn't being availed of it might as well not even exist. Unrealized potential is worthless to the actual economy where business is going on everyday.
>this is impossible, some amount of money is always going to be in circulation and prices will just adjust to this amount
Part of the reason the stock market crash turned into a Great Depression was because people ran on the banks and hodled all their cash which caused a lack of money supply which led to real supply chain delays which further retarded the real GDP of nations.
>total bullshit. if inflationary = available then why isn't zimbabwe dollar the most popular currency in the world?
Inflationary does lead to many positive things as far as economic growth is concerned. It makes investments in your country cheaper and makes your exports more competitive while making imports less competitive. There's a reason why China keeps the value of the Reminbi so low. The only reason why the American dollar is so popular is 1.) It's reasonably available 2.) It's necessary to have to trade in oil 3.) It has a good reputation for stability and part of this is because it's pegged to an interest rate between 2-5% AND the fed sets hard caps on how much cash banks are allowed to hodl