Quote:
Originally Posted by rand
Nothing wrong with it that I can see. Gold and silver are wildly volatile in terms of anything you could possible want to trade it for. That would make it a really ****ty form of money.
*unrefrigerated milk is somewhat worse over timescales over two lifetimes.
That being said, maybe I should not have put words in your mouth.
PLEASE TELL ME, WHY IS INFLATION GOOD (if not the reason I gave??)?
Of course it (inflation) distorts the time value of money. The time value of money is based on opportunity cost, not how fat a finger ole Janet has.
Non-sequitur?? You said some like "...then you would have no money." I simply gave an example of how this was obviously false. Forgive me for not being a mind reader and know what you actually meant (I still have no idea).[/QUOTE]
Inflation creates opportunities for economic growth that are impossible without it. Growth in the supply of gold/silver could not possibly keep up with the supply of cool new things societies are nice enough to provide through productive economic activity.
If you'd like to have a highly volatile in the short run measure of the time value of money so to not be tricked by the extremely simple math, feel free to price things in terms of gold or silver or coffee or small polished pebbles. There is nothing preventing you from converting whatever currency you have into those things so you aren't all manipulated or whatever.
You are economically free to buy whatever you want.