Laeserin @Laeserin - 2mo
Deflation is a monetary phenomenon. If the money supply is static or shrinking (which is the case), then prices can only rise _overall_ by increasing monetary velocity. Usually by getting people to spend their savings.
That is why they are all talking about "getting savings back into the economy" and "releasing savings to spur investment". There's more than enough money in the system, to get prices to rise, but people are unwilling to spend it. So, they are trying to figure out how to make spending it more attractive than saving it.
Ah, but there's a method to the madness. If people sit on the savings, instead of spending it, then you transform those savings into a vehicle that the government can spend for them, and you hand them a government IOU and pay them higher interest, to make it more palatable.
The people who would be unnerved by this have long since moved their savings out of the bank.
Silberengel @Silberengel - 2mo
😂
Yeah, hardly effects any private person, directly. Businesses and insurance companies, on the other hand...
