Quote:
Originally Posted by samcol
Yes, prices will always be dynamic, but with the system we have now the currency is dynamic and the goods are dynamic. If we had a fixed currency it would be easier to set prices on goods and services and avoid the bubbles/crashes.
There's no reason for a good or service to increase in price outside of supply and demand unless there's a new feature or advancement in the product. I call what the fed does artificial inflation, because there's no new value added to the product, but the price goes up due to currency manipulation.
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The problem of a fixed currency is that very few economies do it. This would quite possibly put you at a disadvantage when it comes to balances of trade (i.e. deficits, where foreign currencies become more valuable and thus domestic spending becomes more appealing).
Unless you're a proponent of a fixed global currency?
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Knowing that death is certain and that the time of death is uncertain, what's the most important thing?
—Bhikkhuni Pema Chödrön
Humankind cannot bear very much reality.
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