Quote from: Voogru on June 18, 2013, 12:15:05 AM

Quote from: sidhujag on June 17, 2013, 07:04:33 PM

Obvious Fact: Population growth is not capped

Population cannot grow faster than the ability to feed. Population self-regulates. Noticed how there has only been an explosion of human population after the industrial revolution. If the planet can't support x billion people, people start dying off (sad but true).

Quote from: sidhujag on June 17, 2013, 07:04:33 PM

Obvious Fact: More people on earth means more demand for natural resources as basic necessities, and as a result more currency in circulation has to supply the demand for these resources.

The amount of currency in circulation is irrelevant. What matters is the amount of products and services available to purchase.

If the price level is 100, and $100 buys you a weeks worth of provisions, it is no different than a price level of 1000, and $1000 buying you a weeks worth of provisions.

Quote from: sidhujag on June 17, 2013, 10:29:20 PM

Kind of what I was saying, we def need more deflation with our society now but we don't want to hyper deflate either.

It's only going to be 'hyper-deflation if the world adopts bitcoins as a monetary standard. If that happens, once it has been adopted the price levels will only drop at whichever rate the economy expands. Economies don't hyper-expand, so there can't be hyper-deflation.

And if there is 'hyper-deflation', suddenly being able to buy a new Mercedes Benz for $1 doesn't strike me as a bad thing. (And yes, I know incomes would fall in a hyper-deflation scenario, but the purchasing power would be the same as before)

Quote from: Abandon on June 17, 2013, 10:26:39 PM

There's such a thing as too much deflation, which can cause hyper mania and crashes several times a year.

The reality is when currencies have been allowed to deflate, it's happened at a very slow rate. It depends on how much the economy expands. The only 'hyper-deflation' we're going to see, is if bitcoin goes world-wide with massive adoption, after that it will stabilize and prices in bitcoins will fall slowly over time depending on how economies expand (or contract which would cause prices to rise).

Absent aliens dropping machines that last forever that automagically make everything we could ever want, you're not going to see hyper-deflation where purchasing power rises 500% a year.

Interesting will have to think this one over a bit too.