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@freemo @Springnat @icedquinn @melovida @clacke you are silly. money gaining value is a good thing that promotes investment.
That makes no sense.. If i have 100$, and there is an investment that right now costs 100$ and goes up by 1%... If my money is gaining value that means everything else is going down in price.. so if my money gains 10% value that means that in a year my investment is worth 91$ instead of 100$. How does that encourage me to invest? If anything I should hold onto the 100$ and id have 9$ more in a year than if I invested.
Obviously no, deflation does not encourage more investment, the opposite.
No I didnt, i demonstrated a use case of deflation over 1 year using actual figures.
@freemo @icedquinn @melovida @clacke @Springnat If you say bought a property for 100k, And in say 10 years the value of wealth decreases. Your property is still the same property and its value is determined by supply and demand. If in the pp decreases to half in 10 years then for the same property, assuming that its sold at the same price of 100k will have decreased in Perceived value, now obviously you will want to have increased its price even without any inflation. Repairs/ improvements ect.. but even if you sold the property at 150k for the sake of argument you will have lost wealth and value of real pp(ignoring extra cost of repairs/improvements aswell). Do you understand, currency is a technology, not direct value itself. Its meant to ease the ability to engage in commerce. Inflation hurts the Economy and robes the people who own/use the Currency Rich or poor. It does not matter if you make 100$ an hour if a loaf of bread is worth 10 000$.
@freemo @Atlas_Khan @icedquinn @clacke @Springnat
if you're talking about a fixed term, fixed return investment like a CD, then if the money gains value, even if you get back only $101 at the end of a fixed term investment, your money (as you just said) under deflation *gained* value so your purchasing power of that $101 is correspondingly higher than the $100 you invested. in fact you did not lose anything.
if you're talking about stonks, bonds, and money market, those don't have a fixed value and your investment would increase accordingly
if you're talking about a fixed term, fixed return investment like a CD, then if the money gains value, even if you get back only $101 at the end of a fixed term investment, your money (as you just said) under deflation *gained* value so your purchasing power of that $101 is correspondingly higher than the $100 you invested. in fact you did not lose anything.
if you're talking about stonks, bonds, and money market, those don't have a fixed value and your investment would increase accordingly
@Atlas_Khan @Springnat @clacke @freemo @icedquinn
central bankers use cycles of inflation and deflation and manipulate interest rates to extract wealth from the economy. i figure the goal should be stability or very controlled growth
honestly i don't like to get in the weeds of investing. i just put it in a general fund and let the investment bankers deal with the individual stocks.
central bankers use cycles of inflation and deflation and manipulate interest rates to extract wealth from the economy. i figure the goal should be stability or very controlled growth
honestly i don't like to get in the weeds of investing. i just put it in a general fund and let the investment bankers deal with the individual stocks.
@meowski @Springnat @clacke @freemo @icedquinn he does not in the slightest understand what investments are or how to generate wealth. Anyone lerking please do not take any advice from this fraud lol.
@Atlas_Khan @Springnat @clacke @freemo @icedquinn
generating wealth *for who* is the key point here. inflation generates wealth for the private central bankers who profit from it becuase all that new money is automatically a debt to them that has to be repaid + interest
meanwhile it devalues everyone else's investments accordingly
generating wealth *for who* is the key point here. inflation generates wealth for the private central bankers who profit from it becuase all that new money is automatically a debt to them that has to be repaid + interest
meanwhile it devalues everyone else's investments accordingly
@meowski @Springnat @clacke @freemo @icedquinn bingo, and now you got it. Its not about the money in or of itself but rather relative purchasing power. Have enough shinny rocks for people to engage in the buying/selling of goods and services.
@meowski @Springnat @clacke @freemo @icedquinn "no its a good thing when the common man has less purchasing power, hes likley to spend it that way!"
We were talking about investments, not just putting money in a bank and sitting on it.. but yes you proved my point, deflation encourages hoarding of money in banks or under your bed in a sock or wherever. Inflation encourages investment of it in things that generate more wealth.
@freemo @meowski @Springnat @icedquinn @clacke Hes acting like a dollar today and a dollar 100 years ago have the same value
@freemo @meowski @Springnat @icedquinn @clacke no it allows for better purchasing power. People will not just "toss money at things" because its losing value steadly. If the same thing is costing more and more with a currency people will not use that currency
@Atlas_Khan @freemo @Springnat @clacke @icedquinn my opinion- encouraging savings is healthy and encouraging gambling on speculative investments is not healthy for the economy
if the currency is holding and gaining value, that's a sign of a strong economy
if people are investing in fake stuff like stocks, derivatives, collateralized debt, and all the other weird fake money instruments they've invented, this is not adding any real value to the economy or increasing the wealth of the majority of individuals
if the currency is holding and gaining value, that's a sign of a strong economy
if people are investing in fake stuff like stocks, derivatives, collateralized debt, and all the other weird fake money instruments they've invented, this is not adding any real value to the economy or increasing the wealth of the majority of individuals
@meowski @Springnat @clacke @freemo @icedquinn basically yes. Fiat is based around faith/trust. What you want is Productivity and not speculative investments. heres a little video giving an idea of this
@freemo @Springnat @Atlas_Khan @icedquinn @clacke inflation is a way for bankers to extact wealth from people's savings- so you're almost forced to invest it to stay ahead of inflation.
i would argue that all interest is predatory and it encourages me to do stuff like buy land intead of sitting on savings
i would argue that all interest is predatory and it encourages me to do stuff like buy land intead of sitting on savings
