Ok, that makes sense. It's not that my previous work is becoming more valuable so much as it is taking less work to produce the same amount of stuff.
Discussion
It should. But stuff gets broken from time to time. Crops fail, boats sink, storms wreck stuff, etc.
All prices should trend lower as technology produces more stuff with less input, but instead… the world’s major economies all mass debase their currencies in a race to the bottom, and because their populations are well trained to just suck it up, they do.
Escape to hard money and you are paid both:
i). the growth from technology
ii) the inflation from debasement
It is cheat mode.
Fuck! I never thought of it that way... Things should only get more expensive when some kind of crisis occurs to drastically lower the supply.
Outside of that, things should be getting easier and less expensive to make, so prices should generally always be going down. The fact they aren't is proof that we're having the value of our work drained from us by ever-increasing amounts of money.
FUCK! Why you guys have to make me mad today?
Yeah, Central Banks are really only for fighting wars.
During peacetime a nation should have falling prices, due to tech advancements, no debt and growing currency reserves. A kind of aerobic monetary system. Stable and sustainable.
During wartime, the central bank cuts rates causes an economic boom to win the war burns through all the reserves and runs up a lot of debt, all the be paid back after the war is won. A kind of anaerobic monetary system. Not sustainable.
The problem here is moral hazard, it’s just too tempting to pull the lever and run in war mode.
The West has been in war mode since 2001, pretty much as Bin Laden planned, which is the big tragedy. Now debts are unsustainable and the cost of servicing the national debt in an inflationary environment looks like a major issue in coming years.
Bitcoin allows you to avoid paying the inflation tax and actually collect the inflation tax, whilst also benefiting from technology advancements growing the economic footprint of goods and services that you can buy.