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To: ctdonath2
Ergo, we’d be subject to perpetual deflation.

And what's wrong with that? Imagine your salary was $1000/month. If prices were declining - which reflected general productivity increases in the economy as more goods became available for the same money stock, then you would have RISING REAL WAGES.

Now imagine the opposite. Your salary is $1000/month, but inflation is running 3% p.a. (in reality, probably higher). This is what the FED has given us over the last 40 years. With fiat money, your wages will always lag behind inflation. Why do you think real working wages have stagnated since 1971?

Fiat money and printing is a stealth tax. It steals productivity increases in the economy and it steals your wages, and it steals your savings - all to support Gov't deficits.

53 posted on 12/05/2011 9:38:15 AM PST by PGR88
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To: PGR88
Ergo, we’d be subject to perpetual deflation.

And what's wrong with that?

You're joking, right?

Imagine your salary was $1000/month. If prices were declining - which reflected general productivity increases in the economy as more goods became available for the same money stock, then you would have RISING REAL WAGES.

Imagine your employer had to cut prices year after year after year. They need to sell more product to pay your wages. They have an incentive to reduce head count. Now your real wages are zero.

At least you have lots of equity in your house. Ooops, not so much.

54 posted on 12/05/2011 10:49:00 AM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: PGR88
what's wrong with [perpetual deflation]? Imagine your salary was $1000/month.

Next year it would be $900/month.

The problem should be obvious. It's not the numbers, it's the perception.

55 posted on 12/05/2011 10:56:27 AM PST by ctdonath2 ($1 meals: http://abuckaplate.blogspot.com/)
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