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Thread: I just read this on the Crypto Reddit Forum

  1. #1

    Default I just read this on the Crypto Reddit Forum

    It garnered 10 points as well. How many holes can we poke in this pie in the sky fallacy?

    Inflation is good because it forces risk taking and thus economic stimulation??!?!?!?!?!?

    Low Inflation isn't this evil construct people on this sub make it out to be. It prevents hoarding.

    Without inflation people just hold cash without seeking other methods to earn an ROI to at least offset inflation. This means lending their money to other entities so that they can use it to expand their own interests, be it government bonds, corporate bonds, shares, loans or capital investments.

    Without inflation we have stagnation or deflation and the whole economy shrinks. That means losing jobs, businesses and ultimately consumer purchasing power and consumer choice.

    Japan has been experiencing deflation for several years now and is facing serious problems because of it.
    “Force the normies into taking sides. At the moment they are just like "meh, I am minding my own business" retreating culturally into their private bubbles and "safe-spaces" since they don't understand what is going on. When the actual "us vs them" starts, they will be forced to fight or they'll die.” - Anonymous Poster



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  3. #2

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    Yes that is the ignorant, and evil, Keynesian mentality. They want to centrally plan the economy and coerce people to do what they want them to do.
    __________________________________________________ ________________
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  4. #3

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    Quote Originally Posted by AuH20 View Post
    It garnered 10 points as well. How many holes can we poke in this pie in the sky fallacy?

    Inflation is good because it forces risk taking and thus economic stimulation??!?!?!?!?!?
    So, I don't know what reddit points are, but the premise of the post is actually not far off.

    But I'd put a different spin on it. Artificial inflation prevents "saving". It forces people to spend their wealth while they can before it becomes less valuable. It also encourages people to take on debt, since you'll be paying it back with dollars that are worth less.


    So, yeah, if you think increased debt and lack of saved capital are "good" things... I suppose they'll probably feel differently when the bubble pops??
    Last edited by CaptUSA; 06-04-2018 at 10:50 AM.
    "And now that the legislators and do-gooders have so futilely inflicted so many systems upon society, may they finally end where they should have begun: May they reject all systems, and try liberty; for liberty is an acknowledgment of faith in God and His works." - Bastiat

    "It is difficult to free fools from the chains they revere." - Voltaire

  5. #4

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    Quote Originally Posted by Matt Collins View Post
    Yes that is the ignorant, and evil, Keynesian mentality. They want to centrally plan the economy and coerce people to do what they want them to do.

    Interesting note, Keynes himself hated inflation. And he was consistent about that from his early life until he spoke to Hayek right before he died. People who called themselves Keynesians don't have the same aversion.

    https://cafehayek.com/2009/06/keynes-on-inflation.html
    By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method, they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity of the existing distribution of wealth. Those to whom the system brings windfalls . . . become 'profiteers', who are the object of the hatred of the bourgeoisie, whom the inflationism has impoverished not less than the proletariat. As the inflation proceeds . . . all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless.

    https://www.richmondfed.org/~/media/...f/er670101.pdf
    Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose



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