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Re: Why such agreement that Deflationary currency is a bad thing
by
bitchess
on 28/04/2013, 16:00:07 UTC
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Remember that in deflationary systems, wages fall as well as prices. So you'll still have to work as long! We're in a semi-deflationary period now, with minimum wages frozen and zero hours contracts and juicy salaries only available to the elites.

Something tells me you don't really know what you're talking about and I found the answer with the history you cited, the depressions experienced during that time were a result of massive hyper-inflation of the likes you saw in the great depression later on towards World War 2 both involved massive amounts of money printing of the kind that you saw the Weimar Republic churn out in the hopes of fixing the economy. The problem is money printing does nothing, it temporarily causes prices to rise and wages to rise and then everything comes crashing down. While this is deflation it is deflation and inflation that has been artificially created by central banks which because of the scale causes the massive and total collapses that you see of economies because rather than letting the poorly run companies etc. go out of business they steal everyone else's wealth to keep them going and of course because they are poorly run everyone ends up losing out entirely and the paper becomes worthless.

The idea of deflation is that prices go low and you guy buy things with much less currency than you would normally have to if the currency was inflationary, with deflationary economies you shouldn't be able to have prices going so low they are worth nothing because in a deflationary currency like with Bitcoin there is a limited supply so they will be valued to someone at a given time, gold and silver is also like this which is why they have been used as currencies for centuries. As for wages in general, if the wages go that low and the employer is forcing their employees to work for longer than that is a bit like what central banks are currenctly doing with inflation and interest rates, anyone with sense is going to find someone else to work for in that situation but unless they banded together there is no way the wages in a deflationary economy could go that low people would have to work much longer without them noticing.

Adding to that, deflationary wise I can start providing examples of deflation with real life examples, I calculated that if I sold silver Jewellery I'm making in Bitcoin I would be able to make far more profit than if I did it in paper and it was because Bitcoin, after all the fuss and rants of neo-keynesians is still having much more value than paper. For sure, inflationary paper money causes nothing but grief and is nothing more than an extremely clever way devised by ultra rich central bankers to steal other peoples wealth without getting into trouble.

In short, your history is wrong, you need to study what isn't just in school textbooks and told to you by teachers.

the outcome of the deflationary ccy issue is volatility in the ccy.  sorry your post is not concise enough to address point by point, can you highlight your main idea?

with regard to your last paragraph, you are stating a trivial truth which i agree with, if ccy1 (BTC) experiences deflation, while ccy2 (USD) experiences inflation, it will take more of cc2 to obtain the same amount of cc1