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15761951 No.15761951 [Reply] [Original]

How does inflation work with the USD? If there's nothing backing the USD except the belief that 1 USD= 1 USD and a certain amount can buy something for a certain amount, then why would inflation affect it?

>> No.15761960

They reduce the portion size of the Chicken McNuggets

>> No.15761969

>>15761951
oy vey

>> No.15761989

>>15761951
Debt allows for creation of fictional USD that increases the pool of total USD available over time in theory. The same will happen to Crypto of it becomes the norm, as it happened to gold. Instead of using bitcoin we'll end up with a bitcoin debt contract fiat like system in less than one generation after crypto becomes the norm if it ever does.

>> No.15761992

>>15761951
there are different hypotheses about inflation
some couple the increase of wages with inflation, some with total money supply, etc

>> No.15763111

>>15761951
There are a lot of reasons but population increasing is the most obvious I think. More demand for necessities and products, prices go up, then people demand higher wages, repeat

If the population deflated and demand went down the money would be worth more as prices on food and housing and everything else dropped. Maybe that's one of the many reasons the boomers had it so easy

>> No.15763182

>>15761951
The USD is backed by other countries believing that we are a safe haven to park money, aka. reserve currency. That all goes away if our politicians screw up; they have been doing so for well over half a century.