What are the incentives to spend your money if it always goes up in value?
Does this not stunt economic growth?
Were global economies
stunted before fractional reserve banking or the modern system of "gold backed" fiat currencies printed without limit out of thin air, were invented?
I think its important for people to be skeptical of ideas such as "deflationary currencies stunting economic growth" and not blindly believe in these urban myths without better evidence being provided. Of course bankers love inflationary currencies as it is the best system for fueling wealth redistribution from the poor and middle class upwards to one percenters. Inflationary currencies as a modern analogue to trickle down economics where supposed economists and financial experts have convinced the public that taking on trillions of dollars and euros in debt, the vast majority of which profits the wealthiest demographics--making them richer while everyone else becomes poorer is "best" for society and civilization.
If there was only one currency, and it was deflationary - yes, it would stunt economic growth.
Not to single you out but I'm curious as to how this happens. I have yet to see a good explanation for this and would appreciate it if anyone could enlighten me.
...
If anyone wants an argument against inflationary policies:
Inflationary policies benefit the rich and do nothing for the public.
- $1 trillion dollars spent on the F-35. Did the majority of this money go to the public, or did it wind up in the pockets of wealthy wall street demographics who comprise the largest majority shareholders of northrop grumman?
- Multi trillion dollar bank bailout bill (TARP). This money went to bankers to bail them out of the bad gambling decisions they made with subprime mortgages.
- War in the middle east. All of the money went to wealthy defense contractors benefiting war profiteers.
- Healthcare reform / obamacare. It was funded by 20+ tax hikes. All of the money went to maintaining the profit margins of big pharma and medical equipment manufacturers, as well as maintaining state based healthcare monopolies with their price fixing campaigns. None of it when towards benefiting the public good.
This is a short list. Virtually every
inflationary program and policy is designed to shift debt further onto the shoulders of poor to middle class working americans while shifting wealth further onto the shoulders of those who are already wealthy. This is the only reason
inflationary policies are endorsed. It increases the debt potential of the poor while increasing the profit potential of the wealthy.