/biz/ - Business & Finance

[Anonymous No.51341443]

So wait a minute. Fiat money has inflation built into it. We only adopted fiat money not even a hundred years ago, but lets say society runs perfectly, no covid depression or any economic recession, there is still a built in rate of inflation right?

So at some point, even in a perfect society, money will just keep being worth less and less?

[Anonymous No.51341469]

>>51341443
you can keep the scheme going forever just adjust prices and wages

[Anonymous No.51341477]

>>51341443
Yes, with the intention of making it undesirable to hold uninvested cash. Think hard about why it would be undesirable for people to hoard a fiat currency and you'll learn something you already know.

[Anonymous No.51341529]

Debt anon, it's all about debt. Everything runs on debt, countries themselves as well. And that's debt that can never be repaid.
But if people keep working and numba keeps going up you can not just operate with that debt but you can go in even more debt! Therefore, numba must go up forever to keep the ponzi going.
Honk honk

[Anonymous No.51341544]

the idea is that the money will be invested into technology and production that in turn will drive costs down and raise standards of living. the idea.

[Anonymous No.51341551]

i might be a retard but the population keeps growing which would drive up demand i suppose. inflation matched to growth would provide price stability or something? i dont fucking know, lol lmao

[Anonymous No.51341600]

>>51341551
>population keeps growing

not desirable and not possible either.

[Anonymous No.51341610]

Fiat "money" is a fucking scam.

[Anonymous No.51341621]

People start with hard money, then build up too much debt so switch to fiat, which then hyper inflates so they switch back to hard money and the cycle repeats.

This has happened many times in history before.

[Anonymous No.51341626]

>>51341443

[Anonymous No.51341628]

>>51341443
>

[Anonymous No.51341637]

>>51341600
That’s commie thinking, the goal should never be to limit ourselves that’s why when society was still smart we were obsessed with space travel

[Anonymous No.51341682]

>>51341443

This is what happens when Jews usurp a system created by superior and more honorable Germanic peoples.

The honor of the system is the superiority of the white Germanic people.

[Anonymous No.51341686]

>>51341637
Society is stupid and we are obsessed with dysgenic population growth.

[Anonymous No.51341724]

>>51341600
i dont disagree but the reality is that the population will keep growing until it collapses, at which point inflation will be the least of our concerns

[Anonymous No.51341777]

>>51341477
that's a bogus reason they give. real reason is they want to steal from you

[Anonymous No.51341795]

>>51341777
Triple checked.

[Anonymous No.51342438]

>>51341443

Inflation is a "feature" of fiat. Its about the illusion of money, that normies tend to value things in fixed amount of currency. So like boiling a frog in water, you can over time reduce normies wages through inflation, without them noticing, and are able to extract more profit for workers and concentrate more wealth. Normies thing they are being paid the same thing every year even though they are actually getting a pay cut. By the time they notice they may have gotten raises for experience or seniority, so they think they are better off, but much poorer than they should be based on their real value, and certainly much poorer then the previous generation.

[Anonymous No.51342496]

>>51341477

That is just retarded dogma. There is nothing wrong with "hoarding currency," it is actually much preferable than people hording actually useful shit like commodities, land, or industrial supplies. Instead you can hold money and let the economy use those assets while still having a way to store your wealth over time. Instead inflation actually incentives the hoarding of real assets preventing them from being used by other people just so one person can collect rent doing absolutely nothing.

[Anonymous No.51342572]

>>51341610
You're just being a whiny bitch, there are people who put a fortune in dogshit like vinu, I don't think this is what we should be complaining about

[Anonymous No.51342603]

>>51341469
Sounds like commie talk to me anon.

[Anonymous No.51342660]

>>51342603

Communism is all about centralized planning, closely related to communism is keynesianism, both derived from Marxism. which also calls for a top down government controlled economy through manipulation of a fiat currency. Keynesian economics dominates modern monetary and fiscal policy around the world.

[Anonymous No.51342716]

>>51342438
The other feature of fiat is that the government printing more of it subsidizes whatever they spend it on without calling it a tax, whether warfare (usually good) or gibsmedats (usually bad).

[Anonymous No.51342720]

>>51342660
Nice wikipedia explanation you r*ddit spacing tourist faggot

[Anonymous No.51342761]

>>51342716

yeah, no fiscal constraint leads to endless expansion of the government because its so much easier to promise more but hard to tax more to pay for it.

[Anonymous No.51342825]

Why don't they just put a burn tax on USD

[Anonymous No.51342867]

>>51341443
the entire reason gold was money for thousands of years because it was hard to mine

if your money is just made freely by some bureaucrat then you are 100% a serf

[Anonymous No.51342899]

>>51342496
interesting perspective never thought of it that way

if your money is deflationary then your assets will have more velocity and flow to the people who actually need it

[Anonymous No.51343108]

>>51342899

Yes, because money is actually debt. When you provide goods / services / labor you accept money instead of actual real assets - because you expect the economy to pay you back in the future by exchanging whatever real goods and services you want for that money - but until you do redeem those goods/services they are not consumed and are used by the economy. So money is a type of credit or debt. The anti-hoarding pro-inflation argument acts like slips of paper or digits on the screen are some productive good that is sitting idled and needs to be spent.

[Anonymous No.51343458]

>>51341443
At a theoretical level, inflation makes sense because the total wealth of the world should increase over time
You're a carpenter, I'm a tailor. There are $100 in the world. I pay you $50 for a new chair, you pay me $50 for a new suit. We still have $100 in the world, but all of the sudden, we have a new suit and new chair which add to global wealth. So theoretically, we should have $100 created to match the newly created wealth.

The only problem is that policy makers try to benefit themselves by manipulating the money supply hence all these issues we see today.

Its not that money should be worth less, but the total amount of wealth should grow, and the dollar/wealth ratio should remain constant. This of course doesn't happen due to human choices and hubris- an easy example is politicians spend money they don't have, rack up debt, and simply print money to pay the debt