Re: Which currency system do you think is best?
[ QUOTE ]
If the money supply doesn't grow, dollars will become more valuable as the population increases. This is deflation.
People have an incentive to save because in the future, their money will be worth more. Borrowing would become difficult, keeping money out of the hands of the most productive members of society, slowing the economy.
[/ QUOTE ]
No money will start going only to people who can truly provide real returns on it rather that shot wildly into stock market bubbles and [censored] loans with no hope of repayment. The money is losing value so fast that it has to be pushed out to all kinds of unsavoury characters that noone in their rihgt mind would give loans to in a well run (ie free) society.
|