Why do economists think currency has to have inflation?

and 10000 of those btc was used to buy 2 pizzas

Because you can't stop a currency from either having inflation or deflation and deflation is worse. The best thing to do is push the currency towards inflation enough to keep it on the safe side.

>You have to let us print as much money as we want, otherwise it just won't work. We promise we won't print any for ourselves.

because of greedy jew kikes believing in keynesianism.

friedman proposed
a) either a fixed rate of growth for the monetary base (e.g. 2% each year), which would mean everyody in the economy would perfectly anticipate a 2% inflation rate
b) a negative monetary growth rate to induce deflation and give people who save a passive interest rate

i think he came up with b) later in his carreer and i think he preferred it. i could be wrong about that though

Because (insert academic gibberish here)

It doesnt

Not everyone, just the smart people that hoard your money while you buy deflationary assets. Then they'll buy your house from you for $1 because you never learned how to save or invest.

Because you and everybody ITT is a NEET brainlet who never opened an economics book in their own life, apart from some meme austrians that were too dumb to earn money with a job so they exploited dumb people who inherited some money from their parents to sell their meme books about "le ebil keynes".

everyone would grow there own food if a dollar was as valuable as gold

youre a idiot then

why do people believe btc will survive a great depression type scenario?

crypto will probably be the first one to go since it isnt backed by anything

sometimes Im even wondering why people bother explaining shit to Veeky Forums

>Which is amazing for natural interest rates and a thriving economy
yes I am sure your company can afford to wait 10 years before someone decides to separate themselves from those deflating 10 dollars ajnd buy your product user. The economy will totally thrive.

>everyone would grow there own food if a dollar was as valuable as gold

How is this bad again?

Depends on what kind of situation you are talking about

If it's a more dystopian one, with electricity still available then BTC would survive

i am for a 2-3% inflation which is 100% fixed and cannot change under any circumstance to ensure the integrity of the system

atm kikery fucks with the interest rate like they need it, i am fucking annoyed, i don't know if my 7000$ will be stable converted to EUR in the next years because of their retarded interest rate kikery to fuck with inflation

i fucking hate the EU, simbabwe dollar here i come

>If it's a more dystopian one, with electricity still available then BTC would survive
again why? jesus fuck its going to survive literally how? btc percieved value atm is based on that it might be might be useful in the future. in what kind of dystopian future would a btc be more valuable than shit you need to live another day

let's instead force everyone to uy useless shit because of fear of inflation. Perfect scenario, society is rich enugh to buy useless shit but poor enough not to be albe to move their money into deflationary assets

I don't give a fuck, what's "good for the economy", kikes can put all those useless toys up their asses

Offer a better product then you consumerist kike.

They will eventually spend their money, just not on your dumb shit.

That usually means that you left your wealth to your children, which is indeed what many people would like to achieve.

yea, I'm sure your gold bars will be very usefull, you can do so many things with them.. of wait

>I don't understand how economics work: the posts
I had no doubt
>muh kike
I wish plebs who had no opinion and no knowledge of what they are spouting would come up with a better non-argument, but accusing otherse of being kikes because they don't agree with them takes the cake, that's for sure

again the hodlrs cant think up shit rather than deflect to oh yeah gold is the same

literally why the fuck would people use btc when a fucking dystopian future comes around

>i am for a 2-3% inflation which is 100% fixed and cannot change under any circumstance to ensure the integrity of the system
>i fucking hate the EU
wow, just wow.....you do know that your first sentence is exactly what the eurozone does, right? You niggers know literally nothing about the world

Yeah, who would bother with a currency that is not manipulated by governments in a dystopian future? Totally worthless.

This is the correct answer, and if you are too brain dead to grasp a concept simple then I there is no use trying to explain it either.
You sir are so narrow minded it makes me sick. Of course people will continue to buy food. It's investments like buying a home etc that people with with. Why buy now if I can rent for a year and buy the house for a lower price then?

I'm not saying inflation is a "good" thing, I'm simply saying that inflation makes people want to spend their money now, instead of tomorrow.

>dystopian future meme

You happeningfags have been saying the world is going to end for decades. Shoo shoo apocalypsecuck

Because a spending economy is more powerful than a stagnating deflationary economy. If it's not going to be you, it's going to be someone else, guaranteed. Faggots are questioning the core principles of what made America the wealthiest and most powerful country in world history.

I mean let it fall if you want to be the ultimate chaos edgelord I guess. Don't think turning everything upside down will actually lead you to a better life though.

Yeah, you sure do understand how economics works, nothing better for the economy than people burning away their resources in things they don't need.

Eat your avocados goys, and don't worry about houses or productive tools, our banks will take care of making you dependent on us.

then you might as well make it 0% fixed.
the fixed rate models do have weaknesses though, since you can't react to economic shocks using monetary policy tools. the 2008/2009 financial crisis for example might have been way worse for the US if the FED wouldn't have lowered interest rates (and therefore increased inflation) to (almost) zero.
The FED however was smart enough to start raising the interest rate again, while the ECB still sits at the low as fuck interest rates to keep greece, spain and italy alive. This can't last forever though and the crash will come 100%. The worst part about low interest rates is the fact that you not only keep a few weak states alive you also prolong the existence of zombie-companies which should have failed YEARS ago but keep themselves over waters by borrowing cheap money.

Believe me, the (european) crash will come and this time a lot harder than 08/09.

In Venezuela they spend everything they have and more. Should be the richest country in the world.

Literally no reason to save a single dime.

user crypto is pump and dump galore tahts wildly manipulated by whales, shitcoins and scams. youre spitting on your own face here

theres no reason to even use btc other than to make money now with speculating

unless some rebels actually takeover a country and make btc its money youre fucked if you think established governments would use btc

exactly if we had a delationary system people would still be spending money but on smart things, houses, land, good food, etc,
nobody would take their cash to the grave
everything would be the right way finally, someone who builds houses would be getting paid better tha some faggot who came up with fucking fidget spinners etc
deflationary system is the missing link capitalism needs

No but individuals will. You government fetishist are seriously weird, we don't live in the middle ages anymore.

Venezuela never had anything to spend in the first place. It is a corrupt shithole ran by thieves that is beyond fixing. I'm talking about economies that are actually relevant. Veeky Forums """economists""" and /pol/ """intellectuals""" together would create a country that would function like Hussein's Iraq.

>another I don't understand economics: the post
>muh kikes
It's amazing how even when you point out to retards that they are retarded they never learn. They just keep being retards. Good job user for proving my point.

because nobody can live forever and even if there was a "dystopian future" for bitc poeple would rather spend it rationaly on wise things than hold till their last days just to buy a private island or some shit

again back to when a crash occurs why would a said individual value crypto over things to live by?

btc will only retain its value until a economic crash occurs and its always coming

You do realize you're ignoring the other half of economists who aren't kikes or in power positions who say a constant spending, inflationary economy leads to what we have now...constant bubbles and dogshit stability with the constant threat of depressions and bubbles bursting.

But it's cool. Everyone just spend, spend, spend! Don't worry goy, interest rates are set by the Fed artificially, and they're low! We're just gonna keep printing this shit, don't worry just keep spending!

>again back to when a crash occurs why would a said individual value crypto

Because traditional investments would go to shit.

These kikes understand the game perfectly that's why they advocate for inflation.

When you add liquidity through diluting people's savings, certain products make use of inflation and raise their prices, while other products, of a more elastic demand, need to keep being competitive.

Inflation is a subsidy from the middle class to land owners, healthcare providers, education, media and other inelastic demand products.

So a spending economy is not more powerful. A producing economy is more powerful.

Thanks for proving me right.

Great arguments.

>real estate
youre gonna pick bitcoin over real estate

but yeah try to buy all those real estate with bitcoin when those said individuals dont care about btc

>not caring about BTC
>caring about kike fiat

Your time has come.

It incentivizes people to consume, or else their money loses value.

>what is the subprime mortgage crisis

People learned NOTHING from 2008 did they.

Because without it you cant have a proper government.

bitcoin is FUCKING KING a all the kikes in this thread can go fuck themselves,
I'M NOT FUCKING SELLING
>b-but muh ecnomomy? mr silverberg needs bigger demand on his stupid useless shit!! c'mon goy, don't be so stubborn, buy my useless shit
FUCK YOU, IM NOT FUCKING BUYING

If you produce and no one spends who is going to buy all the stuff you make? What you're thinking of is an export economy. And even in this case someone has to buy.

>you sir
stopped reading there

that was the biggest bank buy up of real estate ever

yes because no one will ever want anything because they can save money.

so let's fucking be it
give people choice
if we go back to trading milk for meat etc, so what, it's not like it would be worse than nowadays wageslaving for mr zimmermann

This is why NEETs need to be genocided before they can do more harm. The human society at large doesn't need this nihilist death cult mindset.

More like the biggest sell off, lmao.

...

>deflationary currency
>people only buy groceries, gas, a house, and other necessities
>no more consumerism
>everyone more happy and content

The moment you produce something you're generating a demand. Demand of currency to acquire other people's production.

There may be situations in which your production is not oriented to people's needs and the market will correct it by making you starve until you change your production to something people need.

here is why youtube.com/watch?v=PHe0bXAIuk0

mr shekelberg wouldn't be so smart on a desert island without any people to exploit
fuck that shit,
>buy buy, more, faster, your money is becoming worth less as we speak, make sure you don't get left behind goy, the ratrace has already started goy what are you still doing here? buy more stuff goy

fucking this

>Work all of life
>Children become entitled shits
Yay.

congrats on being a fucking idiot

thats not up for debate either, no matter how much it stings

without inflation, people save the currency more than they spend it, thus reducing consumption and investment.

the key is having a real and low level of inflation while still maintaining trust and stability in the currency.

the jewbankers have managed to keep the usd afloat but only at the cost of major wars to maintain dominance in oil and also to support the military.

military is the largest employer of us citizens. if that ever changed, expect higher unemployment, which reduces overall consumer spending, which tanks everything else. lending and borrowing go up when income goes down, so thats why you saw the financial crisis of 2007-2009...people were borrowing a lot, even when they had no income, and many were leveraged to the hilt to support their consumer behavior and buy houses.

so with a deflationary currency, like btc, people are less likely to spend it, and are more interested in keeping it for the long-haul gains.

but if the gains are slow or get choppy then people start to invest into other alternatives like alts.

source: i have a baby-dick-sized BA in economics from a top caliphatefornia univ.

>You sir

Easy fix.
>raise them right
>teach them the value of money from a young age
>give them an allowance dependent on household chores, academic performance, and on behaving
>Don't buy them expensive things
>Instead, teach them the importance of saving up allowance to buy expensive things
>Have them set a goal to save up for
>When they're old enough to legally work, cut off the allowance and encourage them to get a part-time job
Of course, you can help them with college if they need it, and anything else they might need help with, so long as you can see that they're trying to be responsible.

So that governments can inflate away their debt.

What the fuck is your point? Is your madmax sceario already priced in in all markets but crypto?
>Yes, sir, it's a very solid house. Great location, great neighbourhood, best daycare in town just a couple blocks away. It's way under market price too, because there's not much yard space for laying mines, y'know? In case of a dystopian future.
Retard.

>mfw I clicked the image before reading the thumbnail

Deflation is king moron.

This guy gets it.
Basically, they're speeding up the economy by this measure.
People are incentivized to spend and not save up that money (I've recently seen a study posted here about a third of US millenials having 1000$ on their acc's IIRC).
End game being (((NWO))) with a technocratic-financial elite and a slave feudal class.

t. Economic highschool graduate (marxist education theory)

>Why buy now if I can rent for a year and buy the house for a lower price then?

You cannot predict massive growths in purchasing power through deflation.

It is somewhat expected that the productivity of the labor that backs the currency's value will grow, but it is never certain.

Also, this is unrealistic, because if people who rent their houses realize there's a higher demand for rent due to this, they would raise their prices.

Econ phd fag here:

Prices in many contracts (wage, rent, ...) aren't flexible, but fixed. Assume there are shocks to the economy and markets, but prices cannot adjust downwards as they should. Inflation makes it easier for the economy to adjust as all "real prices" have a natural drift downwards.

think it up on your own you cant even grasp the point even if its laid out to you

you guys only try to think when posts are baity

your supposed use for bitcoin doesnt hold water

economic crash happens? now what people suddenly use bitcoin to pay for stuff? in a depression all the unnecessary stuff is the first to go

This

Phd fag riddle me this
Are your collegues retarded enough to believe in infinite growth?

>but prices cannot adjust downwards as they should

Why wouldn't they?

You're talking from a status quo perspective, if people were used to deflation the perception in purchasing power growth would kick in.

what do you guys think of the ECB vs Fed mandate? Does the fed have any real reason to persue full employment? Seems like it's just a burgerland thing

this is the basis of the big lie and deception, that this behavior is bad and that the current perverted system doesn't encourage it anyway through saving and interest paid on bank deposits (for people older than high school savings accounts used to pay interest that actually added up to something). the behavior that gets changed is that it is no longer about boundless consumption in a deflationary environment rather you make the choice to get a return on your money by holding it out of circulation (i.e. saving) and population growth/demand for currency informs your return through an increase in purchasing power... no bank needed. whereas now your real rate of return will always be negative as a saver, which promotes boundless consumption over pragmatic allocation of resources (which would exist in the deflationary scenario)

Inflation target =/= inflation rate

We've got ~1,5% interest on savings in Eastern Europe.
Basically, if we left our money in the bank, it'd get eaten up by inflation.
And they wonder why we don't save up...
Crypto is the shining light

Well this may sound odd but we need sheep to work => consume => work => consume => ...

If everybody would start investing in deflationary assets to gather more wealth the economy would grind to a halt.

We need the 90% thoughtless masses buying useless shit and splurge in their consumerist tendencies and companies making more shit.

You get rich very easily actually, do not consume. Instead buy assets, since debt + inflation + production will ensure more wealth gets added to the system. You will enjoy a growth of at least equal to the amount of percentual wealth creation over the long term.

So you pick a hedge that inflates less fast then money like Gold, crypto, stocks, ....

You want to keep liquidity as low as possible since its value goes down while you are holding it.

because the governments pay them to think that.

>>Instead, teach them the importance of saving up allowance to buy expensive things

How to remain poor for the rest of your life: the definitive guide.

You do not get rich by working, it is a fools dream.

first, it doesnt have to... it can go through deflation too.
but currently every country in the world has been printing currency since 2008... only way to correct the massive quantitative easing is through inflation

Better question

What would happen if we suddenly killed off half the population? what happens to there money? what happens to the dollar value?

>America
>Wealthy

America has 21 trillion in debt. It's debt is SO LARGE it can never pay it off. It will have to default at some point. I would not want any dollars since the USD is in this massive bubble.

>And they wonder why we don't save up...
Noone wonders that, inflation exists because "they" don't want you to save up.

Our parents do

The debt is part of why we inflate. Less powerful dollar = less debt. If we were owed a lot of money, we would want the countries that owe us to deflate their currency making their debt more valuable relatively. Anyone who had loaned venezuela a billion venezuelan dollars a few years ago got cucked for example.

Deflation fucks your economy. It's generally bad.

how do governments actually engage inflation in an economy, what's the instrumental process?

Print money, which is then spent on public programs and lent to the private banks at 0% or even negative interest rate, and force low interest rates on banks, so they have to increase the amount of people they lend money to.

At the same time, governments guarantee banks and their investors that they won't let them fall and will bail them out should they need it.

This creates a shitload of incentives that ends up in things such as the housing bubble, and the incoming stocks bubble burst.