Hey thanks for replying you make some interesting points!
Now we can consider other things like if an economy was actually based off of something, like a gold standard. You cannot just create more money out of thin air. You need physical assets to back it up. That's where we have gone awry. Our currency is based on nothing more than a promise to pay (which has been damn near as good as gold for a long time, granted).
But when they bail out banks and just created trillions out of thin air, what happens to all existing money whether real or virtual? That's key.
I think there are arguments for adjustments here and there, but in a true capitalist economy without interference the market will always correct itself. Once value hits a certain amount, everyone dumps until value goes down to a certain amount, then horde again using your analogy. There will be a regular and predictable cycle about it. And some things, you just can't wait for. People need fuel and food and medicine. So there will be constant spending regardless of the actual value.
I find this topic very interesting, but so few to actually discuss it with rationally.
Thanks again!
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