Quote from: Rassah on November 13, 2013, 09:37:31 PM

Quote from: AnonyMint on November 13, 2013, 06:49:13 PM

You better learn what deflation really is.

Jabs aside, your post starts off with this:

Quote from: AnonyMint on November 13, 2013, 06:11:14 PM

The basic point is that capital sitting in a hole FOREVER is theft from production and new knowledge creation. Savings and delayed gratification are important, but they are not so important that capital should grow in value FOREVER for doing nothing but sit in a hole.

There is a very subtle but extremely important question here that you may be missing, which I think deserves it's own post, and that is:
Does capital chase production and new knowledge creation? Or does production and new knowledge chase capital? Depending on how that question is answered may make the rest of your post completely irrelevant.

You missed the big one. And it actually explains a lot about AnnoyMint's delusions.

Capital does not grow while sitting in a hole. It rots, it rusts, it fades away.

Now money, on the other hand... Money is an abstraction, a placeholder. Without money, we barter, my goods or services for yours. With money, we still barter, but we do it in half transactions. I give you my goods or services, but I don't want what you have to sell, so you give me an IOU, money. Later, I complete that trade by redeeming my IOU for something that I do want. Because money is an abstraction, in the aggregate, holding money is akin to having provided goods or services, to the world. The money that you hold represents capital that the world owes you, but can use until you call for it.

We naturally expect that the world will put our capital to good use, and earn steady returns with it. If we didn't feel this way, we would call that capital in and put it to use ourselves.

Failure to understand this basic principle poisons the mind. It is impossible to understand economics while you think that to save is to deprive the world of capital. It is, however, perfectly possible to write a whole bunch of incoherent gibberish while holding that belief, as AnnoyMint is all too willing to demonstrate.