Exactly.
With a fixed money supply and an increasing amount of goods, prices will fall.
That concept encourages savings and investment, and discourages borrowing and the attached interest.
That’s why the bankers HATE it!
A system based on credit is the other way around.
Thank you. I was beginning to doubt my ability to explain it.
Including the price of labor.
That concept encourages savings and investment, and discourages borrowing
And hurts everyone who already borrowed.
That’s why the bankers HATE it!
It's true, bankers don't like it when your collateral, your house for example, declines in value every year, year after year. Of course you probably wouldn't like that either.