Post
Topic
Board Economics
Re: Martin Armstrong Discussion
by
STT
on 10/01/2017, 08:29:22 UTC
I find it funny the people who think FRB is a scam also think inflation shouldn't exist.

Money is nothing other than the lifeblood of society, and just as a human body grows in size and requires a larger volume of blood, the economy requires an increase in money supply in order to operate effeciently (hence the term "liquidity").

100% reserve banking is socialism because it leaves no legitimate way to expand the money supply, and a fixed money supply rewards people who sit on their ass, it treats money like it was a corporate share in the economy that should increase in value as time goes on. This is also why cryptocurrencies which are modeled on fixed money supplies are doomed to fail over the long term (or at least fail in the sense that they will always be relegated to niche uses, rather than becoming primary or world-leading currencies)

Roach you're just another luddite running your mouth about a world you haven't even begun to understand.

If by sit on ass you mean invest wages and withheld value instead of spending and requiring goods immediately for their labour.    The modern alternative is to reward and to gift money to politics which spends it as it wishes without restraint or in proportion to the benefit it brings.   The inflation of the monetary base to subsidise a government is far closer to a taxing situation then just allowing those who have earnt value at a market agreed price to invest and gain interest for delaying importing goods or using up domestic supply, its proportional not unfair ?
  Not spending when technology allows such a big advantage in utility does not seem too easy or iliquid a situation, it might be less rewarding