Comment Re:No (Score 0) 259
Labeling all bankers, lawyers, and investment houses as thieves of money is, of course, absurd. I will assume you meant it as a hyperbolic jest, the way I might comment that slashdotters seem to live in parents' basement and lack even a rudimentary understanding of economics. I assume you are criticizing the idea of the fractional reserve system, in which banks hold some money in a reserve and lend the rest out. The inherent setup of this system results in money creation or destruction depending on the level of interest rates (irrespective of the federal reserve, FWIW). Please also note that money creation is not necessarily the same thing as a change in the price level. The two are, of course, related through the velocity of money (if everyone stuffs money in their mattresses, prices will fall even if the monetary base is unchanged).
I suppose it is possible to create a government/legal community/finance industry cabal bent on getting the finance people rich, though I prefer the interpretation that the setup was such that system permitted a few people to take risks so excessive that they did not fully understand that there was a destabilizing effect on the country. As to your argument that there is nothing wrong with a deflationary spiral: 1) do you have a mortgage or credit card debt? that is denominated in nominal terms. Good luck if all prices and wages fall. 2) See the great depression. This is what happens when deflation gets out of control. 3) Milton Friedman won a nobel prize 40 years ago for demonstrating that there are real (meaning economic) impacts to inflationary/deflationary trends. This has been well known to students of economics for over a half century. Of course, they could all be wrong and you right.. After all, they're all just a bunch of thieves.