/biz/ - Business & Finance

>stealing money through inflation is a good thing!

>>4790199
Monero level inflation is the comfy compromise

>>4790270
>we gots to get bak in duh gold standud!

>>4790199
> I lose 2% of my wealth every year and i think this is a good thing.

>>4790323
>my economy has faltered due to consumers not spending and I think this is a good thing

>i print free money via interest that probably ruins the loan taker

>>4790378
http://www.nber.org/papers/w10268.pdf

>>4790378

When have consumers not spent?

You really think women will ever stop spending money? Lmao

>>4790470

>>4790378
>my currency devalues at a rate that forces me to malinvest where i would have otherwise saved for healthy investment down the line

>>4790575

>>4790378
>With deflation people would just hoard money and bury themselves with it like Pharaohs

>>4790199
>not being able to withdraw from my bank account more than 800 euro per month helps the economy
s greece

>>4790470
Printing money =/= circulating money
>>4790515
The economic consensus is that the depression was a deflationary crisis, magnified by the contractionary policy of the fed at the time
>>4790562
Inflation encourages spending, why buy a car for 18 grand today when you could buy it for 16 grand a while later with an appreciated dollar? Yea hyperinflation is shit, but deflation spirals aren't any better

>>4790643
>millionaires gain more money than they spend
tell me how this is allowed and "healthy"
hows that not hoarding money
the whole finance and money system is fucked up and deep inside you know im right

>>4790301
>>we gots to get bak in duh gold standud!
yo, i herd dat yo

>>4790713
Because most millionaires aren't hoarding money in their houses like Scrooge mcduck. Their money's in equities and other investments that stimulate the economy.

>>4790643
>Inflation encourages spending,

Inflation discourages saving

>why buy a car for 18 grand today when you could buy it for 16 grand a while later with an appreciated dollar?

Why buy a car if I don't need a car? If you can wait one year then you don't need it. Consumerism is cancer.

And besides, what does it matter for the economy when you buy the car? You're going to end up spending that money sooner or later. Why does the spending need to be today and not tomorrow?

>>4790643

>why buy a car today for 18 grand when it will be 16 grand later

Maybe I want to, uh, drive around now instead of waiting a few months?

Maybe my current car broke down and I need a new one?

With your logic, no one would ever buy a car, because a current year model will decline in price as time goes on, even in the current inflationary system. And yet, people do buy cars!

>>4790643
>Inflation encourages spending, why buy a car for 18 grand today when you could buy it for 16 grand a while later with an appreciated dollar?
Literally nobody thinks like that. Inflation and deflation matter for business investment and importing and exporting.

>>4790826
>>4790851
I'll admit, a car was a bad example. Consumer goods work better with it.
>>4790858
>what is forex investment
Inflation absolutely is a consideration considering it affects interest rates you braindead mong

Inflation is only good for bankers.

>>4790982
>Inflation absolutely is a consideration considering it affects interest rates you braindead mong
Nobody cares about interest rates except businesses.

>>4790199
how far down will these brainlet wojaks get?

>A constant inflation rate of about 2 % is good for the economy, serves as a lubricant

This is likely the most evil fallacy in economics. Of course, inflation is bad, because it rewards bad behaviour (like making debts, spending money, consuming more than one needs) and punishes good behaviour (saving, being frugal, consuming only what one needs). Inflation is a tool to confiscate value produced by the conscientious, creative, productive, hard-working, frugal, and redistribute that value among the wasteful, the unconscientious, the unproductive, the borrowers, the parasites, the pleasure-seekers.

The idea behind this fallacy is that inflation encourages people to buy things now because prices will be higher in the future, and that the mere buying of things (consumption) is "good for the economy", even when people buy things they do not really need, and even when they buy those things with money that is not their own but borrowed (inflation encourages borrowing because it reduces the value of one's debts). But obviously, economic growth that results from consuming more than one needs, and from doing so with borrowed money, is empty, bad for the ecology, and does not reflect a real increase in value but rather the opposite

>>4790643
>inflation encourages spending
please, just stop

>Deflation is bad because it discourages people to buy goods

This is a fallacy for largely the same reasons mentioned under "A constant inflation rate of about 2 % is good for the economy..." The idea is that people will be less inclined to buy goods if prices are expected to be lower in the future; but of course, if one truly needs something, one buys it anyway, and what one does not truly need one should not buy at all. The buying what one does not need (overconsumption) is hollow with regard to economic growth, does not add value, and endangers the environment. Since deflation encourages one to buy only what one needs, it is actually a benign instrument in fighting overconsumption and environmental pollution. In a healthy economy that is in balance with the ecology, neither inflation nor deflation are desired, and the value of money should simply be constant.

>>4791179
Go back to the forest, elf.

>>4790982
But even then, under deflation you don't just hoard the money for the sake of hoarding, saving means delaying a purchase, not living like a poor man even though you're loaded.

Inflation encourages spending TODAY, but why would you need people to spend today instead of tomorrow?

I'll tell you why, because if they save, they don't need to rely on banks to acquire debt.

I'll also tell you why, because if they spend today, numbers are good today, and in 4 years the new administration will be the one looking bad.

Inflation is a tax on the middle class, as the excess of liquidity always falls on low elasticity demand products such as top 100 stocks and housing, it's a way of subsidizing the lobbyists and the oldest trick in (((the book))).

>>4791179
>and the value of money should simply be constant.
The value of money should adjust to market conditions to reflect productive improvements.

If currency was inflationary during the gilded age, we wouldn't have progressed half as much as we did.

Money should be able to inflate and deflate according to people's demand for it with a static supply, and that's the only thing that should affect it.

What """"economists"""" don't seem to understand is that banks and governments losing the monopoly over money creation doesn't mean deflation. Banks and governments only offer liquidity so producers can sell their goods and services, but with crypto producers can create their own liquidity which brings huge benefits to them and they don't need central banks to provide liquidity for them anymore.

>>4791088
>>4791179
Good posts.

One thing to keep in mind is that consumers are highly irrational (BTFO Economics), and without the behaviour of "the wasteful, the unconscientious, the unproductive, the borrowers, the parasites, the pleasure-seekers", the GDPs would reduce to a fraction of the current. Which isn't a bad thing in itself but would become one, since every country designs their policies with the focus being to increase the GDP.

>inflation is a good thing!

>>4791600
>with crypto producers can create their own liquidity
Crypto isn't valuable for this. P2p lending and Kickstarter are better.

>>4791129
your money will be worth less if you save it therefore spend it early to get more bang for your buck.
That's the gist of it.

>>4790199
OP right now

Yes goy, go into debt for the sake of the economy

>>4790378
>normies decide to spend or not depending on minor inflation

>>4790199
The world did fine without inflation until the fed was created. Begone kike shill.

>>4791088
Deflation also discourages investment, which is obviously disastrous for the economy, you brainlet.

>>4792927
And curiously some countries are deflating their own currency while preaching inflation for others. Really activates my almonds.

>>4791088
>produced by the conscientious, creative, productive, hard-working, frugal, and redistribute that value among the wasteful, the unconscientious, the unproductive, the borrowers, the parasites, the pleasure-seekers.

lmao this neurotic Rand-speak