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Oh money…

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  • 1
    Profile photo of Damon Smith Now Damon Smith Now September 6, 2012 at 6:03 am

    Please, please, take a basic economics course for free online. Most of us hold backwards false thoughts on money due to to the specific exclusion of economics from basic “education”.

    If someone hoards money, it is effectively out of circulation. This causes the total supply of circulated money to decrease and as a result increase in value.

    The fact that money decreases in value due to legalized counter-fitting is a separate issue.

    • 1
      Profile photo of kalle kalle September 18, 2013 at 9:11 pm

      it is only out of circulation theoretically. Just because jim has $99 and does not spend it does not mean that the practical value of jims $1 is realistically higher it simply means that people will desire to gain a fraction of that 1% more. means nothing to the global economy.

    • 1
      Profile photo of John John November 10, 2012 at 11:54 pm

      What you’re saying is truth. But it doesn’t make the image false. Imagine 100 guys, and each one have a gold coin. If somehow one guy manages to get 80 gold coins and keeps it from circulation, there will be 99 guys struggling for the other 20 coins. Now tell me that that ain’t poverty.

      • 1
        Profile photo of Hermes Hermes November 16, 2012 at 3:30 pm

        good point @john

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