What’s the schedule on airdropping porn mags into the UK woods?

If you’re an individual investor, given the choice between the 2 scenarios, would you rather exist in a world with 2% deflation, where you have to make more than a 2% return on investment in order for it to have been worthwhile, or a world with 2% inflation, where you don’t even need to correctly pick a growing investment, and even an investment that just holds a stable value is worthwhile.

Deflation world. Invest $100 in a 2% risk free bond for a year. End up with $102 nominal ($104 real)

Inflation world. Invest $100 in a 2% risk free bond for a year. End up with $102 nominal ($100 real)

As an investor, the deflation world looks better to me.

But this is naive and childish to think that an environment where you just get free wealth for no reason by doing nothing is healthy for an economy as a whole.

You are literally describing the current world of investment. You have to go full communist to live in your “healthy” world.

I suspect this is not at all what you meant to write, but it’s hilarious that came out like this.

we live in a reality of moderate economic growth, so therefore moderate inflation is required to maintain it.

This is not true. But you may be referring to the money supply rather than price inflation so I’ll let it pass.

Technically, deflation isn’t always theoretically bad and inflation isn’t always theoretically good.

Agreed. We could leave the discussion here and part amicably.

When your money is going to gain some value, you might as well take a risk and invest it for an even greater potential reward.

People always want more money.

Deflation does encourage delayed consumption of none staples and big ticket items. This is a feature not a bug.

You are correct that deflation adds on top of interest, which makes loans more expensive.

No. There is less interest charged on loans in a deflationary environment. Loans are cheaper. Remember the Argentinian counterexample ? Inflation high, interest rates high.

You need a higher return on investment in order to outpace deflation

No, in an inflationary environment you demand a higher return on investment in order to outpace inflation. Look at Argentina if you are confused.

Deflation is the opposite of inflation. Keep up.

Again, facts and history disagree with you. See the great depression and other economic downturns.

Read the links you posted. Debt default was the crisis. Deflation was a symptom.

When your system entirely hinges on risk not existing… big sign that you’re wrong lol.

I have no idea why you claim my “system” has nothing risk. Reread this thread to correct your misunderstanding.

In order to loan out money and charge interest, someone needs to agree to the terms on the other side of the exchange.

Agreed.

• When there is inflation a higher amount of interest is accepted by the lender to compensate this loss.

• When there is deflation a lower amount of interest is accepted by the lender.

The economy doesn’t grind to a halt. People don’t horde cash. Consumption still occurs. Services are still performed.

Even if deflation means the value of money increases every year, people will still lend out their money because they would like to have more than money than if they did nothing.

find that 1BTC still buys 1 unit of the investment instrument, even though your investment grew in value during the same period of time.

So you made a bad investment in something that wasn’t needed. Invest more wisely. This is basic economics.

It’s impressive that you’re still responding after your argument has been torn to shreds

It’s good practice and helps hone my ideas.

Deflation is the answer to the infinite growth required by capitalism. It should be embraced, not avoided.

desperate name calling

I’m not calling you names. I’m saying you have demonstrated no ability to think independently. I don’t think you are a LLM but likely you are copy pasting from one.

You can’t even refute it

I did. You seem unable to process the responses I write or even the links you post.

When your system entirely hinges on people not considering risk.

I wrote the opposite. That under deflation people will still make risky investments because it will make them money. Yet again you demonstrate an inability to comprehend.

They want more, and they can get more… by doing absolutely nothing…

1. Money under the mattress earns deflation

2. Money invested earns deflation + interest.

The second is more than the first.

I think we’ve reached your limits in this topic.

bitcoin will continue to deflate year after year. At least gold can be mined.

You know bitcoiners will still be mining for over 100 more years.

there’s no motivation to invest and accept any risk when all you have to do to increase your wealth dramatically is wait, risk free.

Another lazy myth regurgitated. You were obviously an exam crammer, not a thinker.

People choose more over less. They will still invest in risk free bonds paying an interest rate because they will end up with more money. They will still invest in risky assets for the same reason if there were no deflation. More money.

If you are expecting $100 and are only going to get back $50, are you happy that your purchasing power has increased and you are really getting $51 back, or are you angry that you’ve actually lost $49.

The crisis is the default, not the deflation.

Dude. Read what you post.

A little bit of deflation is a product of, and good for, economic growth. But, in the case of an economy-wide, central bank-fueled debt bubble followed by debt deflation when the bubble bursts, rapidly falling prices can go hand-in-hand with a financial crisis and recession.

Deflation isn’t bad. It is a symptom that occurs after an economy-wide, central bank-fueled debt bubble. That’s the bad part. The debt that’s not being repaid.

This takes us right back to the start of the discussion. In a crypto economy a central bank doesn’t even exist, so crypto deflation is never bad.

Why is deflation bad?

Nope. The debt is still $100. There is no increase.

Being slightly harder to pay back is irrelevant if there are now only $50 of assets in the economy.

The inability to repay debt caused the great depression, not deflation.

Does deflation increase or decrease the amount of debt? 🤔🤔🤔🤔

Neither. If you currently owe $100 (interest free) then next year you still owe $100.

I could literally do this all day lol its effortless to just be correct.

Of course it’s effortless. You are asking questions and not thinking for yourself. I’m the only one giving explanations and providing the correct responses.

There is a reason the Tara Reade allegations didn’t derail Biden’s campaign.

Deflation makes debt harder to repay and it rewards the debt owners with greater purchasing power.

This means deflation is actually a good thing for half of the economy (the bond holders). Not the monster it is always made out as being.

Again. The amount of debt is the worry, not the gradual change in value of the denomination.

Yes, the round trip is more expensive.

But if you receive some income in crypto and park it in a stablecoin (like USDC) then you can avoid the price volatility risks and round trip fees. The crypto fees are much less than 2% and this also avoids rewarding censorship.

The conditions mean that debts cannot be repaid. Thats the fear. Not because the gradual increasing purchasing power of the underlying currency that actually benefits the bondholders.

Take a walk. Have a think.

During World War I, many countries suspended their gold standard in varying ways

It’s in the first line. The cause here is WWI, not the great depression. These are countries going broke and abandoning the gold standard because of war, not because they are experiencing deflation.

A state of over-indebtedness exists, this will tend to lead to liquidation, through the alarm either of debtors or creditors or both.

Exactly. The quantity of debt relative to GDP is what is of concern. You are linking to the right things. Go back, reread them and then take a long walk and have a good think.

Crypto is not a currency Is an environmental disaster Has massive deflation

My first response delt with this. Only bitcoin is an environmental disaster. Deflation is only relevant if you hold a currency long term. Irrelevant for payment processing.

Seriously, the fuck are we doing here?

We are discussing how to counter the monopoly stranglehold of payment processors. Crypto is a possible solution that is viable today.

If it is true that total pool of currency needs to be able to grow with the economy then the rate one variable grows must be linked to the rate the other grows. If there is no link then there is no relationship.

The great depression was caused by a stock market over inflated with leverage. This has nothing to do with the gold standard.

And notice how we have deviated from the topic of deflation. It’s a topic built on myth and misunderstanding that easily slips out of focus.

There is absolutely no evidence that deflation itself is bad. The great depression occurred because there was too much debt. Japan suffered in the 90s because it had too much debt. Deflation/inflation just measures who gains more over time, debtors or lenders.