Why is plat so important????

[Raavak]

Yah no kidding. Do you have a savings account? Do you see your interest earnings? Compare them to the inflation rate or cost of living rise... that money in your savings account is actually has less value over time.

Other than it is safe from being stolen there, keeping money in the bank is a big loser.

[Ele]

Originally Posted by Raavak [You must be logged in to view images. Log in or Register.]

Yah no kidding. Do you have a savings account? Do you see your interest earnings? Compare them to the inflation rate or cost of living rise... that money in your savings account is actually has less value over time.

Other than it is safe from being stolen there, keeping money in the bank is a big loser.

That's why I try to live paycheck to paycheck, I completely avoid inflation devaluing any savings!

[Frieza_Prexus]

Originally Posted by Splorf22 [You must be logged in to view images. Log in or Register.]

How can you possibly call this deflation?

I'm not. We are absolutely, unequivocally, the literal definition of an INflationary economy. We use a fiat currency (for good or ill) that is subject to manipulation by a specific manager.

My comment was directed at Ravager when he invoked the gold standard. It seemed, to me, that his tone was in support of the gold standard. To which I rebutted that the gold standard is inherently DEflationary because the gold supply has, historically, always been less than the population's growth rate. Because, under a gold standard, population (hence demand) grows faster than the supply, the scarcity of money continually increases increasing its relative value.

Hence my remarks that a gold standard is deflationary. I then mentioned bimetallism (essentially a gold AND silver standard) as a wry reference as bimetallism has not been seriously discussed outside of academic circles (See: Friedman or Kindleberger) since the late 1800's.

[Hitchens]

No serious economist advocates a return to the gold standard. Not a one.

[Naerron]

this is a little off topic, but a worthy tangent. Check out this article http://www.nytimes.com/2007/06/17/ma...anted=all&_r=0 if u want to cut through the non-relevant stuff, just do a page search for everquest. On a more related not tho, plat here def reps time spent, which gives it value, talk to people like nizzler or regular fungi king campers...Also do you know about the massive amount of RMT that went down during the IB/TR exodus? And also, i have been around since the servers first days, and there was about 100 of us who played. During that time plat did not seem as valuable i must admit, i mean the community was so small that people generally just passed gear along when they upgraded. And when there was commerce it generally was bartering. However, as people reached to a lvl where they could farm things, even in groups, plat quickly became a hot commodity, maybe because it now time factored more into it's value. Which would be a direct result of people farming instead of manifestly being there to lvl. Take it as what you will, but i think you might not be getting an A in your theory class.

[Splorf22]

Originally Posted by Frieza_Prexus [You must be logged in to view images. Log in or Register.]

\To which I rebutted that the gold standard is inherently DEflationary because the gold supply has, historically, always been less than the population's growth rate. Because, under a gold standard, population (hence demand) grows faster than the supply, the scarcity of money continually increases increasing its relative value.

Isn't it a good thing when stuff gets cheaper? Sure I agree a small constant deflation is probably bad but its much much worse to have a government in charge of printing money whenever they feel like it.

And Hitchens, in my humble opinion the entire economics professions should be taken out and shot for crimes against humanity. There is a reason there was no Nobel prize is economics - 90% of it is unscientific blather which is used by people who run our country (i.e. the bankers) to justify looting and plundering.

[Slave]

And that is why platinum is so important.

[Snagglepuss]

I'm sad that no one has made a Conspiracy Keanu meme yet...

[Frieza_Prexus]

Originally Posted by Splorf22 [You must be logged in to view images. Log in or Register.]

Isn't it a good thing when stuff gets cheaper? Sure I agree a small constant deflation is probably bad but its much much worse to have a government in charge of printing money whenever they feel like it.

And Hitchens, in my humble opinion the entire economics professions should be taken out and shot for crimes against humanity. There is a reason there was no Nobel prize is economics - 90% of it is unscientific blather which is used by people who run our country (i.e. the bankers) to justify looting and plundering.

Deflation tends to make goods cheaper in terms of the amount of currency spent on the item, however consider the effects of this on an economy in the aggregate. Being paid less for your goods results in less income, and because you have less money, salaries (and everything else) must lessen to reflect this reduced income in terms of the number of dollars coming in.

That said, if $0.95 buys the same thing that $1.00 would have a year ago, there doesn't seem to be much of a problem. In terms of absolute buying power, everyone has the same amount.

The problem is most visible in areas where the currency is dealt with in absolute invariant numerical terms. IE: debt. If you owe $100 today, your money is worth less next year but you still owe the same $100. This means that the absolute debt becomes increasingly burdensome.

That said, inflation also reduces the value of a person's savings and it is also arguably terrible. However, strong inflation tends to be less disastrous than strong deflation. Inflation means all debts are cleared more easily whereas deflation leads to all debts stagnating.

Both are sides of the same coin and both represent a problem if left unchecked. Our current society has been constructed via the use of debt and leveraging and its benefits are undeniable to our current capitalistic model. Inflation is simply more controllable and less harmful to our current social construction.

Our government also favors inflation as it gives them more to play with. Control of the money supply is a vital tool under most modern economic models. If you're interested in ideas or constitutional amendments to fairly and justly control the expansion of the money supply, I suggest you read Free to Choose by Milton Friedman, specifically chapter 9: The Cure for Inflation.

[shooteneq1]

The problem with returning to the gold standard is the same bankers causing all the problems also own vast amounts of gold. We need to just eliminate the fed and our own government should be creating its own money rather than letting a bunch of bankers create it and us then borrow it at interest. the problem is the bankers also own all our politicians so they are never going to get rid of the fed.