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Deflation and Fiat Economies

Shawn April 04, 2020 at 22:49 1450 views 1 comments
There is no doubt in my mind that deflation is the greatest threat to fiat economies.

The issue is two faceted; but, there is hope from the economic turmoil that Generalized Artificial Intelligence will generate, undoubtedly.

The first thing that will most likely happen is the cessation of wealth enrichment. It won't really matter if you have a billion or a trillion if everyone's purchasing power increases. Even a 1% deflation rate will make the rich go batshit.

Keynesian economics will be on steroids, at least initially, which will still be beneficial to the poor. After enough money gets pumped into the economy, which will hasten the demise of the rich, the poor will still win with policies like Universal Basic Income.

What happens next is open for discussion. What do you think will be defined as the new unit of value?

Comments (1)

Shawn February 26, 2021 at 01:01 #503165
https://www.federalreserve.gov/econres/notes/feds-notes/the-increasing-deflationary-impact-of-consumer-digital-access-services-20200715.htm