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The guy has absolutely no idea what he's writing about. He lost me at: money issued by central banks, fiat money, acts as a ‘store of value’ – it preserves the
by phase5 5y ago
The guy has absolutely no idea what he's writing about. He lost me at:
money issued by central banks, fiat money, acts as a ‘store of value’ – it preserves the spending power of income and wealth, so that you can be confident that a pound, say, will buy about as much in a year’s time as it would today.
- anonporridge 5y agoThe key term there is "a year's time". That's generally true for most fiat money in stable countries, but it becomes an absolutely terrible store of value for anything longer than a few years.
- gonzo41 5y agoThat's why most money kept with banks is kept in interest bearing accounts to at least keep up with inflation (obviously things have been a bit off kilter since the GFC and covid). Or that pound quickly moves into circulation.
- deleted 5y ago[deleted]