Saturday, February 6, 2016
Long ago, when the economy was universally thought "good" except by cranks like me, I read something about hoarding that made a lot of sense.
The money you have hoarded away under your mattress lies idle, collecting no interest. And, in an inflationary economy, the value of your hoard gradually withers.
However, in a deflationary economy -- the economy created by excessive hoarding -- the value of the hoard grows.
Got it? The simple act of hoarding, in the extreme, is sufficient to collapse the economy like a black hole.
Posted by The Arthurian at 4:00 AM