Re:Cryptocurrency chaos as China cracks down on ICOs
by richardknop on Wednesday September 13, 2017 @06:04AM
(#15236901)
I live in London, UK. I agree inflation is very low right now (has been for a decade in EU really). However this is still really bad for savers like me as there is no safe place for me to store my money with any sensible interest rate (most banks here will give you something ridiculous like 0.25% interest rate on savings now...). Feels like savers never get a break in the current economic system.
But I was making an argument about why inflationary currency might not be great for everybody. It's definitely not a win win. Inflationary currency helps some people but also harms other people, deflationary currency would just switch groups that are being advantaged/disadvantaged.
Re:Cryptocurrency chaos as China cracks down on ICOs
by Nursie on Wednesday September 13, 2017 @06:40AM
(#15237041)
I don't believe it would, it would slow the economy a lot in many different ways.
The post you replied to asked about the returns on a tracker fund as compared to inflation, as that's generally the way to make relatively safe, modest interest on money at the moment. Investing, rather than saving.
Plenty of countries have lived through double-digit inflation. The real issue there is not so much savings as wages: inflation means needing to renegotiate wages more often. This caused a lot of the UK's labour unrest in the 70s, for example, or the problems of Brazil leading to the "Real".
Also people keep thinking inflation is purely due to money supply and forgetting that eventually you have to exchange money for goods and services at some kind of price level.