On Thu, Dec 4, 2008 at 11:06 PM, Von Fugal <[EMAIL PROTECTED]> wrote: > That is exactly how it would NOT work. Say you have some unit called a > foo that represents one gram of gold. Say over time growth causes 1 gram > of gold to be too large a unit to do business efficiently with. (I don't > want to think about thousanths of foos). What you then do not do is > redefine a foo as 1/1000 of a gram, holders of foos would be up in arms! > (yet in fact this is exactly what so called expanding the money supply > (inflation) does). No, what you then do is create an entire new > denomination, a bar, defined as 1/1000 of a foo.
That seems like kind of a naive view of economics. A small amount of inflation is healthy. It means that everyone's money (the amount they currently have) slowly becomes worth less, and that's bad, but the overall benefit to everyone - including the person who's sitting on their cash in various investments - is "better enough" (sorry I'm operating on too little sleep, you know what I mean) to make up for the slight loss of value. Besides, any investment that isn't beating inflation isn't worth having your money in. /* PLUG: http://plug.org, #utah on irc.freenode.net Unsubscribe: http://plug.org/mailman/options/plug Don't fear the penguin. */
