Re:The Portuguese can no longer afford to live in Portugal
by selectodude on Thursday September 01, 2022 @09:40PM
(#32685636)
Deflation deepens recessions and lowers investment. It is inherently bad. It has nothing to do with spending money without raising taxes. Countries that can borrow in their own currency can already do that in any environment. Heck, parts of Europe had negative interest rates to combat deflation.
Re:The Portuguese can no longer afford to live in Portugal
by zx85wes on Friday September 02, 2022 @04:50AM
(#32688317)
The eurozone only had a few quarters of deflation the past 25 years. The problem is that the ECB considers it main task to be providing governments in Southern Europe with cheap credit instead of focussing on price stability.
Re:The Portuguese can no longer afford to live in Portugal
by WalterBright on Thursday September 01, 2022 @10:34PM
(#32685948)
> It has nothing to do with spending money without raising taxes.
Where do you think Biden's trillions in extra spending is coming from? Not from raising taxes.
Re:The Portuguese can no longer afford to live in Portugal
by selectodude on Thursday September 01, 2022 @10:55PM
(#32686064)
The US has been deficit spending basically every year since 1929. Its impact on inflation is pretty questionable.
Re:The Portuguese can no longer afford to live in Portugal
by WalterBright on Thursday September 01, 2022 @11:30PM
(#32686258)
Look at it as percent of the money supply. And you didn't answer the question.
> Fiat systems aren't inherently inflationary; but they target a low level of inflation because they prefer it to deflation.
That's just the excuse. The real reason is so the government can spend money without raising taxes. So they sell you on the idea that inflation is good.