this post was submitted on 14 Aug 2024
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Economics
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Yeah, that's the joke lol. If you just don't add anything inflationary it magically is "under control."
Some inflation is not a problem. After all gold inflation is 1.6-1.8% per year according to the World Gold Council and many cryptos such as Monero have even less than that. Replacement levels of inflation are not a bad thing but uncontrolled fiat printing definitely is. Giving one group of humans the ability to control what everybody sees as money is guaranteed to cause that group of humans to act in their own self-interest and hurt everyone else.
Inflation isn't inherently bad: an overheated economy, which is the result of inflation, is. This is basically where we are right now. Had the fed not gotten cold feet when they halted the rate increases we'd be in a far better position right now (sans a few banks with bad balance sheets.)
The fiat currency discussion gets murky quickly as most everything's value is relative and derived from something else's value. Crypto is no different and arguably has its own set of issues.
Ultimately regardless of the currency we as a world introduced a ton of what should have been temporary wealth during the COVID period into the markets to save lives and businesses. That money needs to go away to restore balance to the economies. This means a negative inflation rate, or put differently, deflation.
But deflation is a boogeyman according to them and they do not want that to occur and strive to do everything in their powers to prevent it.