Comments by "" (@Cloud_Seeker) on "What Causes a Recession or Depression?" video.

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  8.  @TheImperatorKnight  ""My point is that inflation is not always counterfeiting money." Of course it is! That's literally what it is!" - Incorrect. The difference between a poison and medicine is the amount. You are not always poisoning your patient. Inflation isn't always bad. If you inscrease the amount of goods and services being traded you also have to increase the money supply. If you do not you will have a very valuable currency, but it is only valuable because there isn't enough of it to go around. Money in itself is a commodity. The point of money is the following: 1. Be a medium of exchange 2. Be seen as value by everyone using it, even if it doesn't have its own value. 3. Be readily avaliable to work as a medium of exchange. Massive inflation fails number 2 but fix number 3. Massive deflation solves 2 but fails 3. "Deflation isn't bad. In fact, it can be quite good,..." - ofc it isn't, but it can be. Money is worthless if you need so much of it that you can't use it. Money is also worthless if there isn't enough in circulation so people can use it. Deflation isn't good or bad, same thing goes for inflation. They are neutral terms that depend on the situation. If everyone is hoarding money the money in circulation will decrease. If people hoard to much you actually can't use the money because it is all hoarded. You need money to be able to trade. You can go around using IOU's all the time. Everyone can't have a bar tab. The problem you have TIK is that you have a childish understanding of the issue. A black and white thinking. Inflation isn't 100% bad and deflation isn't 100% good. I rather have 100 bucks that I can spend then the promise I have 10 bucks as soon as someone else gets paid.
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