Fair enough. With all the back stabbing and kicking each other when their down that supposed Republicans do to one another, it's a miracle any election goes their way.

BusterAg said:

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MRB10 said:

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Deflation is a natural phenomenon in a truly free market. It is not inherently good or bad.

Many would argue that deflation is the natural state of any economy undergoing rapid technological advancement.

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Not if that economy is investing heavily in that tech, putting upward pressure on wages / Capitol to employ the new tech. Kind of like Ram now?

A small amount of deflation doesn't impact behavior. Significant deflation is 1929 bad.

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I hate to break it to you but our current system is likely staring down the barrel of a major financial collapse in spite of the government manipulating monetary policy to avoid deflation and financial pain.

A less elastic monetary system where the currency is pegged to a scarce asset absolutely handcuffs the government when there is a crisis(see 1929). However, such a system incentivizes saving, more productive capital allocation, and financial discipline. A society undergoing rapid technological advancement is 100% aligned with such a system regardless of the creative destruction that will inevitably come due to capital allocation only going to the best ideas.

We live in a system where we hand each other fun coupons for things we want and pretend we don't see our purchasing power decreasing by 2-3%(likely much more) every year due to debasement/QE. We have to invest via a highly manipulated system where retail buyers are at a disadvantage to preserve our purchasing power. I'd rather save in a money that preserves purchasing power automatically as goods become cheaper to produce

The fiat experiment is likely coming to a conclusion in our life time and I think deflation + hard money sounds more appealing going forward.

Fiat money is absolutely not going away in your lifetime. Pipe dream.

The USD is permission to operate within the US economy. You can't pay taxes unless you have USD. You can't participate in the economy without paying taxes.

The US economy is strong. As long as it stays stronger than the printing presses at the Fed, the $ will have significant value.

The USD will likely be replaced someday, but it won't very likely be asset-backed currency or a fixed quantity currency like Bitcoin that replaces it. The reason for that is that the people who decide what you can use to pay taxes with won't want to do that.

I never claimed to have a crystal ball but the odds of a major financial crisis in the next 5-10 years is reasonably high. The catalyst of that is unknowable but there are signs that it's coming.

Allocate your personal capital as you want but I believe it would be in the countries best interest to move to a system similar to what I'm advocating for if/when our debt is no longer at the top of the heap.