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One thing that would help is if our governments, all governments, would stop spending money they don't have, and therefore stop devaluing currencies. When the Fed "buys" $4T in mortgages to relieve banks from holding any risk, where do they get all that money? They don't - they just "print" it, by clicking on a computer. And in the process, they devalue everyone's wealth.

Take a look at this chart: http://blogs.wsj.com/economics/2015/12/14/a-brief-history-of...

Yes, things are not quite as volatile since 1930, but also note that there is only inflation, whereas before, there was deflation to balance out the inflation. I know everyone says deflation is the devil. I'm not so sure about that.



Devil's advocate here, definitely not an economist either, but why is devaluing everyone's wealth a bad thing?

Sure, individually it sucks for one's pile of money to be worth less than it was yesterday but it incentivizes one to figure out solutions to inflation - real-estate, stocks, bonds, assets, work more, etc. Also leads people to produce more and not allow a resting-on-the-laurels situation. Overall, big picture wise, the species needs to grow to survive - to obtain the technology to expand outside of Earth. Stagnancy is a deadend death.

Note, I also did not agree with a bailout.




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