I’m not calling you names. I’m saying you have demonstrated no ability to think independently. I don’t think you are a LLM but likely you are copy pasting from one.
You can’t even refute it
I did. You seem unable to process the responses I write or even the links you post.
When your system entirely hinges on people not considering risk.
I wrote the opposite. That under deflation people will still make risky investments because it will make them money. Yet again you demonstrate an inability to comprehend.
They want more, and they can get more… by doing absolutely nothing…
Ah yes, accusing one of using an LLM, a sure sign of winning the argument 🤣
Money invested earns deflation + interest.
That’s incorrect, money LOANED earns deflation + interest, not money invested. Money invested loses out on the deflation.
You have 1BTC. You exchange the 1BTC for 1 unit of an investment. As BTC deflates, it’s buying power increases. When you go to sell your investment, you find that 1BTC still buys 1 unit of the investment, even though your investment grew in value during the same period of time. You could have done nothing to get the same result, without risking the volatile investment losing value instead of gaining. The higher the return needed to outpace deflation, the riskier the investment needs to be. Deflation worked against the investment, not with it.
Inflationary currency motivates investment and consumption. When your money is going to lose some value anyway, you might as well take a risk and invest it for a potential reward. You might as well make that large purchase today, because your money will buy a little less tomorrow. This is healthy for the economy.
You are correct that deflation adds on top of interest, which makes loans more expensive. This stifles an economy by decreasing demand/consumption and the flow of money through the economy. When loans are more expensive to pay back, people are discouraged from taking a business loan and starting a new business or taking out a loan and investing it or using it to make a large purchase.
I think we’ve reached your limits in this topic.
Lol I’m literally giving you a free education. You should be paying me for this. It’s something that you’re still responding after your argument has been torn to shreds with my every reply, without fail. The name calling and LLM accusations creep in as you start to realize you’re wrong and desperately cling to denial. The cracks are already showing lol. Getting tired of trying to spin inconsistencies? Like I said, it’s effortless to just be correct.
In order to loan out money and charge interest, someone needs to agree to the terms on the other side of the exchange.
Agreed.
When there is inflation a higher amount of interest is accepted by the lender to compensate this loss.
When there is deflation a lower amount of interest is accepted by the lender.
The economy doesn’t grind to a halt. People don’t horde cash. Consumption still occurs. Services are still performed.
Even if deflation means the value of money increases every year, people will still lend out their money because they would like to have more than money than if they did nothing.
find that 1BTC still buys 1 unit of the investment instrument, even though your investment grew in value during the same period of time.
So you made a bad investment in something that wasn’t needed. Invest more wisely. This is basic economics.
It’s impressive that you’re still responding after your argument has been torn to shreds
It’s good practice and helps hone my ideas.
Deflation is the answer to the infinite growth required by capitalism. It should be embraced, not avoided.
The economy doesn’t grind to a halt. People don’t horde cash. Consumption still occurs. Services are still performed.
Again, facts and history disagree with you. See the great depression and other economic downturns.
people will still lend out their money because they would like to have more than money than if they did nothing
Again, risk exists and is half of the risk-reward calculation. When your system entirely hinges on risk not existing… big sign that you’re wrong lol.
So you made a bad investment in something that wasn’t needed. Invest more wisely. This is basic economics.
It’s a demonstration of the relationship between deflation and investment. And yes, it is basic economics. 😂
Invest more wisely
Invest with less risk? More risk? Or you’re saying “just predict the future correctly” 🤔 I wonder if you’d learn something about this in an econ 101 class.
Deflation is the answer to the infinite growth required by capitalism. It should be embraced, not avoided.
Gee, you’re literally dead wrong, and the experts agree with me. It’s inflation, not deflation, that is required for growth. There’s a reason the government targets a rate of 2% inflation per year.
Inflationary currency motivates investment and consumption. When your money is going to lose some value anyway, you might as well take a risk and invest it for a potential reward. You might as well make that large purchase today, because your money will buy a little less tomorrow. This is healthy for the economy.
You are correct that deflation adds on top of interest, which makes loans more expensive. This stifles an economy by decreasing demand/consumption and the flow of money through the economy. When loans are more expensive to pay back, people are discouraged from taking a business loan and starting a new business or taking out a loan and investing it or using it to make a large purchase. This is bad for the economy.
I have no idea why you claim my “system” has nothing risk. Reread this thread to correct your misunderstanding.
You need a higher return on investment in order to outpace deflation and make investing worth your while. Do assets with a higher potential return have more risk or do they have less risk?
Also I’m just going to keep posting these 2 paragraphs every comment until you actually address them lol:
Inflationary currency motivates investment and consumption. When your money is going to lose some value anyway, you might as well take a risk and invest it for a potential reward. You might as well make that large purchase today, because your money will buy a little less tomorrow. This is healthy for the economy.
You are correct that deflation adds on top of interest, which makes loans more expensive. This stifles an economy by decreasing demand/consumption and the flow of money through the economy. When loans are more expensive to pay back, people are discouraged from taking a business loan and starting a new business or taking out a loan and investing it or using it to make a large purchase. This is bad for the economy.
Nope, you literally have it backwards. No wonder you’ve got this all wrong.
If your money increases in value at a 5% rate (deflating), and a share of stock also increases in value at a 5% rate, then there’s no reason to exchange your money for the stock. The stock needs to increase in value at a higher rate in order to make it worthwhile to give up the currency and possess the stock instead.
Inflation is opposite. For example, if your money is decreasing in value at a 2% rate (inflating), the stock doesn’t even need to increase in value for it to be better. It would be worthwhile to exchange the money for the stock even if it was just holding a stable constant value.
Which is riskier, a stock that has a potential return of +5% or a stock that holds a stable value?
Rate of return needs to beat/outpace deflation. Technically you’re half right, because rate of return ALSO needs to beat inflation, it’s just easier to do because inflation is negative, so even investments that don’t grow and just hold a stable value beat inflation. Which is why inflation encourages investment and stimulates and grows the economy.
As promised:
Inflationary currency motivates investment and consumption. When your money is going to lose some value anyway, you might as well take a risk and invest it for a potential reward. You might as well make that large purchase today, because your money will buy a little less tomorrow. This is healthy for the economy.
You are correct that deflation adds on top of interest, which makes loans more expensive. This stifles an economy by decreasing demand/consumption and the flow of money through the economy. When loans are more expensive to pay back, people are discouraged from taking a business loan and starting a new business or taking out a loan and investing it or using it to make a large purchase. This is bad for the economy.
When your money is going to gain some value, you might as well take a risk and invest it for an even greater potential reward.
People always want more money.
Deflation does encourage delayed consumption of none staples and big ticket items. This is a feature not a bug.
You are correct that deflation adds on top of interest, which makes loans more expensive.
No. There is less interest charged on loans in a deflationary environment. Loans are cheaper. Remember the Argentinian counterexample ? Inflation high, interest rates high.
I’m not calling you names. I’m saying you have demonstrated no ability to think independently. I don’t think you are a LLM but likely you are copy pasting from one.
I did. You seem unable to process the responses I write or even the links you post.
I wrote the opposite. That under deflation people will still make risky investments because it will make them money. Yet again you demonstrate an inability to comprehend.
Money under the mattress earns deflation
Money invested earns deflation + interest.
The second is more than the first.
I think we’ve reached your limits in this topic.
Ah yes, accusing one of using an LLM, a sure sign of winning the argument 🤣
That’s incorrect, money LOANED earns deflation + interest, not money invested. Money invested loses out on the deflation.
You have 1BTC. You exchange the 1BTC for 1 unit of an investment. As BTC deflates, it’s buying power increases. When you go to sell your investment, you find that 1BTC still buys 1 unit of the investment, even though your investment grew in value during the same period of time. You could have done nothing to get the same result, without risking the volatile investment losing value instead of gaining. The higher the return needed to outpace deflation, the riskier the investment needs to be. Deflation worked against the investment, not with it.
Inflationary currency motivates investment and consumption. When your money is going to lose some value anyway, you might as well take a risk and invest it for a potential reward. You might as well make that large purchase today, because your money will buy a little less tomorrow. This is healthy for the economy.
You are correct that deflation adds on top of interest, which makes loans more expensive. This stifles an economy by decreasing demand/consumption and the flow of money through the economy. When loans are more expensive to pay back, people are discouraged from taking a business loan and starting a new business or taking out a loan and investing it or using it to make a large purchase.
Lol I’m literally giving you a free education. You should be paying me for this. It’s something that you’re still responding after your argument has been torn to shreds with my every reply, without fail. The name calling and LLM accusations creep in as you start to realize you’re wrong and desperately cling to denial. The cracks are already showing lol. Getting tired of trying to spin inconsistencies? Like I said, it’s effortless to just be correct.
Agreed.
When there is inflation a higher amount of interest is accepted by the lender to compensate this loss.
When there is deflation a lower amount of interest is accepted by the lender.
The economy doesn’t grind to a halt. People don’t horde cash. Consumption still occurs. Services are still performed.
Even if deflation means the value of money increases every year, people will still lend out their money because they would like to have more than money than if they did nothing.
So you made a bad investment in something that wasn’t needed. Invest more wisely. This is basic economics.
It’s good practice and helps hone my ideas.
Deflation is the answer to the infinite growth required by capitalism. It should be embraced, not avoided.
Again, facts and history disagree with you. See the great depression and other economic downturns.
Again, risk exists and is half of the risk-reward calculation. When your system entirely hinges on risk not existing… big sign that you’re wrong lol.
It’s a demonstration of the relationship between deflation and investment. And yes, it is basic economics. 😂
Invest with less risk? More risk? Or you’re saying “just predict the future correctly” 🤔 I wonder if you’d learn something about this in an econ 101 class.
Gee, you’re literally dead wrong, and the experts agree with me. It’s inflation, not deflation, that is required for growth. There’s a reason the government targets a rate of 2% inflation per year.
Inflationary currency motivates investment and consumption. When your money is going to lose some value anyway, you might as well take a risk and invest it for a potential reward. You might as well make that large purchase today, because your money will buy a little less tomorrow. This is healthy for the economy.
You are correct that deflation adds on top of interest, which makes loans more expensive. This stifles an economy by decreasing demand/consumption and the flow of money through the economy. When loans are more expensive to pay back, people are discouraged from taking a business loan and starting a new business or taking out a loan and investing it or using it to make a large purchase. This is bad for the economy.
Read the links you posted. Debt default was the crisis. Deflation was a symptom.
I have no idea why you claim my “system” has nothing risk. Reread this thread to correct your misunderstanding.
You need a higher return on investment in order to outpace deflation and make investing worth your while. Do assets with a higher potential return have more risk or do they have less risk?
Also I’m just going to keep posting these 2 paragraphs every comment until you actually address them lol:
Inflationary currency motivates investment and consumption. When your money is going to lose some value anyway, you might as well take a risk and invest it for a potential reward. You might as well make that large purchase today, because your money will buy a little less tomorrow. This is healthy for the economy.
You are correct that deflation adds on top of interest, which makes loans more expensive. This stifles an economy by decreasing demand/consumption and the flow of money through the economy. When loans are more expensive to pay back, people are discouraged from taking a business loan and starting a new business or taking out a loan and investing it or using it to make a large purchase. This is bad for the economy.
No, in an inflationary environment you demand a higher return on investment in order to outpace inflation. Look at Argentina if you are confused.
Deflation is the opposite of inflation. Keep up.
Nope, you literally have it backwards. No wonder you’ve got this all wrong.
If your money increases in value at a 5% rate (deflating), and a share of stock also increases in value at a 5% rate, then there’s no reason to exchange your money for the stock. The stock needs to increase in value at a higher rate in order to make it worthwhile to give up the currency and possess the stock instead.
Inflation is opposite. For example, if your money is decreasing in value at a 2% rate (inflating), the stock doesn’t even need to increase in value for it to be better. It would be worthwhile to exchange the money for the stock even if it was just holding a stable constant value.
Which is riskier, a stock that has a potential return of +5% or a stock that holds a stable value?
Rate of return needs to beat/outpace deflation. Technically you’re half right, because rate of return ALSO needs to beat inflation, it’s just easier to do because inflation is negative, so even investments that don’t grow and just hold a stable value beat inflation. Which is why inflation encourages investment and stimulates and grows the economy.
As promised:
Inflationary currency motivates investment and consumption. When your money is going to lose some value anyway, you might as well take a risk and invest it for a potential reward. You might as well make that large purchase today, because your money will buy a little less tomorrow. This is healthy for the economy.
You are correct that deflation adds on top of interest, which makes loans more expensive. This stifles an economy by decreasing demand/consumption and the flow of money through the economy. When loans are more expensive to pay back, people are discouraged from taking a business loan and starting a new business or taking out a loan and investing it or using it to make a large purchase. This is bad for the economy.
People always want more money.
Deflation does encourage delayed consumption of none staples and big ticket items. This is a feature not a bug.
No. There is less interest charged on loans in a deflationary environment. Loans are cheaper. Remember the Argentinian counterexample ? Inflation high, interest rates high.