You can't have growth without inflation - understanding value flow

Money is man's stupidest invention and how it became a power house is quite insane.

Well, not exactly insane as it really just serves as a transport system with minimal cost so it's rather predictable.

I'll have to explain that analogy in a bit but first, inflation, what is it?

Inflation is the rate at which the general level of prices for goods and services rises, leading to a decrease in purchasing power. It erodes the value of a currency over time, causing each unit to buy fewer goods and services. Central banks often aim to manage inflation to maintain economic stability.

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It's rather weird that when we talk about inflation, most people generally look at the end product rather than the root cause. I've been of the opinion that technically, a dollar has actually never lost any value because in all honesty, it never had any.

It's the same thing with every currency out there except crypto because with this, energy, a natural resource, is being used up in the process.

That said, inflation as we've seen above is primarily a rise in prices of goods and services, so typically, someone is more greedy for some reason and demands more for the same thing.

A transport system with minimal cost

Created or built?

I most times don't like the use of the word “create” “creation” “created” when talking about things of man, it just sounds like some sort of supernatural event, so instead, I prefer the word “build” “built” as that is more down to earth.

Everything to man's name is made out of what has already existed on earth, so man builds from existence materials.

That said, the analogy “a transport system with minimal cost” when talking about money simply defines money as a system that moves values or items around.

Think about it, before the existence of money, man would have to travel far distances, do a lot of things, sometimes fight wars to obtain control over properties and food - this is a high cost.

But with money in the picture, the man sits in one location and claims ownership of properties in far distant places at debts that he believes someone else somewhere will also take and give out properties.

Money is debt.

It's called a “store of value” for a reason - even though it sucks at it.

But, that's the thing, the reason it sucks is the same reason we have a thriving world - I think.

Inflation leads to both profits and loss

Inflation is just another word for the existence of human greed. Without inflation, governments will be poor and businesses will be poor, inflation is what makes the system work.

How?

Inflation works because humans are divided by design. There's never going to be a universally accepted currency system, or standard of any kind.

This division or diversity gives room for errors, it gives room for competition, it gives room for expansion, and above all, it gives room for failures.

Inflation is like every system out there, it's double faced.

Failures of one system bring growth to another.

To put it out plainly, the dollar appears so strong because many other countries do not use it, and are not under the same economic system. Hence if they fail, the dollar wins because the value flows from there to the dollar.

This tells us that inflation is good, so long as you're not the one suffering it, sound similar to any other thing in life?

This is why we will keep having currency wars. Stocks are essentially currencies as well even though the majority don't see it that way.

All of this has to happen because each new human wants to grow big, but in order to do that, someone else has to fall, so, to spread the impact, more currencies and money systems are developed.

I wouldn't say that it's a human intended pattern, rather, it's nature, this is how balance is created without actual balance.

Perfection is really just imperfections coming together.

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