Quigga wrote:I don't think deflation is the issue when talking about fiat. Rather compound interest, creating money out of nothing, devaluing entire nations via credit score, the ability to freeze assets, having monopoly on the fiat money production.
Deflation and inflation, I don't know much about. But if something is inherently without value and just BS we all agreed to believe in - it doesn't matter if that 'lack of being intrinsically valuable' thing goes up and down. Imo
Money doesn't have intrinsic value, it's just a marker of value. It represents labor and capital and is an energy.
Deflation applies to a non-fiat system, such as a gold-backed currency. You hit a point where you get more value in the economy than can be represented by the volume of money so each unit of currency gains value, which sounds great, but debt becomes more onerous, and we're largely in debt. It also becomes even more difficult to see that value is sufficiently circulated for everyone to participate in the economy.
You know who the gold standard benefits? People with large holdings of gold, that's it. Everybody else gets screwed.