What’s the counter argument for when someone says we need flexible money supply to be able to avoid a deflationary spiral?
Discussion
#[1] that one might be for you
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There are no angels. Power tends to corrupt; absolute power corrupts absolutely. The temptation to inflate is too great. No one should have that power.
Okay. I agree. It just seems a bit of a weak argument to make when someone is scared of a deflationary spiral.
Maybe this?
There are two different types of deflation. The credit death spiral, of which one should be afraid. This occurs when the money supply is massively expanded and then contracted again. The feature of Fiat money so to speak.
Bitcoin will not lead to such a scenario because of the constant money supply. The deflation that Bitcoin will cause is that all goods and services will become cheaper over time. The productivity of humanity is thus passed on to everyone equally and not just to governments, large corporations and cantillionaires.
Not really what I’m looking for
