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To: DannyTN

Price is information. Inflation/deflation corrupts the information.


18 posted on 01/10/2011 8:12:32 AM PST by DManA
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To: DManA
"Price is information. Inflation/deflation corrupts the information."

Unless the Inflation/deflation is relatively stable. Inflation/deflation has been more stable since the Federal Reserve was created than it was during the 1800's when we were on a gold standard.

The only difference is that under the Federal Reserve the direction has been mostly one way, a slow inflation. That makes the currency not a good store of long-term value, but you shouldn't use currency for that anyway.

You have inflation/deflation on any monetary system. It was worse on the gold standard. You had huge swings of 20 to 25% in a year.

27 posted on 01/10/2011 8:37:45 AM PST by DannyTN
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