Why the money supply must inflate

- Isn't it 4 weeks that they have to wait?
Yes, exactly. But staggered 5 per week.
Imagine if everyone got paid at noon GMT, on thursdays glovally. The markets would exhibit weekly behavioural patterns/ trends because the velocity of the earnings part is not continuous.
In a larger example, the other parts of the economy would stagger/supplement a flow of earnings even if its inconsistant. savings people have will buffer individual purchacing potential, and: the business "cash on hand", as well as "stock in storage" would balance the pay cycle and product availability for purchace, etc.
But that value is "locked-up".. im my concept of wealth, these are the units of measure, though their value diminishes as the quantities increase, and are kind of graded onna scale from: decomposing consumables > precious metals.

But we see this exact "effect" when considering "for example" .5% homeloans expiring en-mass from covid, and reverting to 5%. And interest rate uphevials to accomodate money flow changes in the economy as the central rate decisions are even discussed before a decision is made.
 
Money has to inflate because the economy and population grow, more goods and services, more transactions, and we all need confidence that currency keeps flowing. Without that, deflation would freeze activity.
 
betterinvestmentthanshare said:
How is it working out in the west?
Click to expand...

Shithouse because our governments are not spending enough.

Our own Federal government is obsessed with saving money. Our living standards are declining and our infrastructure is crumbling as a result.

Many don't understand that every dollar the government doesn't spend or removes from supply via taxation is a dollar that comes out of the pockets of the real economy. In other words, we're paying for our own demise with our savings.
 
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