Post
Topic
Board Economics
Re: A Question about Fiat
by
hilariousandco
on 30/10/2014, 09:04:13 UTC

Honestly I dont know how to start this conversation but what Im trying to say is this

What happens if we in America that can afford to save every month maybe a few hundred bucks

start to burn every month 100$ insteed to save tham.

Now this happens 1 time every month a few million american practize this.

Wouldnt be the rest of our money now worth more than before we burned the 100$??

No, the people who burnt their money would just be a hell of a lot poorer. Fiat is inflationary and the fed can just keep printing more and more so it will never get 'rarer'. If they stopped printing it it could rise in value when supply and demand kicked in.