Quote from: steelhouse on September 06, 2011, 05:23:37 AM

If you have $10,000 in the bank and cars drop to $500, I buy one. The cost of a trip to Europe drops to $100 I go on a trip. People don't sit on their savings. They spend it. They earned it. They work to earn money, to take trips and buy cars. Their money will go further.

The time preference argument only works for legal tender currencies. If you are free to use any currency you will just save with the deflationary one and spend with the inflationary one.

Quote from: steelhouse on September 06, 2011, 05:23:37 AM

Government making money out of nothing is no more moral than throwing grandma out of her house, taking $20,000 of her $100,000 savings every year. Then kicking dirt on her while she is laying on the ground.

Jesus christ. Why do people keep using this argument? Nobody is disputing this and it doesn't help your case in favor of deflation. In fact it hurts your case when you try to bring in morality to a discussion about economic models as it implies you don't have good logical arguments and have to resort to appeals to emotion.

Quote from: becoin on September 06, 2011, 06:48:14 AM

Quote from: johnj on September 06, 2011, 05:13:22 AM

Everyone is sitting on their money waiting for it to grow.

But how will their money grow if interest rate on those 'accounts' is zero?

He is obviously talking about purchasing power, not in nominal terms.