[ExI] Bitcoin effect on the Fed's abilities? (Was Re: Inflation graph)

[Brent Allsop]

Thanks John,

This is all very interesting information about Inflation.

It'll be very interesting to see how Bitcoin start effecting this 
durring the next decade.  Currently, when we get to far ahead of 
ourselves, and head into a "great recession", the federal reserve is 
able to help keep it from becoming a depression by printing and spending 
lots of money (largely on stupid things like the government buying used 
cars to be destroyed).

The big problem is, when we head into such retractions, there has never 
been any place to invest money, as everything crashes in value, even 
cash if the federal reserve is printing it, as it should.  But Bitcoin 
is dramatically changing this Big time. Anything like the US government 
threatening a default on their loans, causes the price of Bitcoin to 
rocket.  The next time things turn down, I'm going to have all my 
capital in Bitcoins, as they are sure to explode in value.

Sure, people say deflation is a bad thing, but not if people are getting 
stinking rich by holding Bitcoins.  Then they can spend such wealth on 
much better things than buying used cars to destroy.

In such a world, printing money may help stop deflation of the dollar, 
but what about virtual currencies?  What effect will that have on 
Governments attempting to stimulate economies?  What is the next 'great 
recession' going to be like?

Brent Allsop




On 10/27/2013 11:31 AM, John Clark wrote:
> For those who think that inflation in the USA is the most important 
> economic problem in the world today and is so high that every effort, 
> no matter how draconian, should be used to decrease it, take a look at 
> this graph:
>
> http://www.nytimes.com/interactive/2013/10/27/business/economy/inflation-falls.html?ref=economy
>
>
>  John K Clark
>
>
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