Deflation is worse than inflation.
- nonsense, that's an unqualified statement. Deflation is not worse than inflation, it is only inconvenient for the debtors and of-course USA government is the biggest debtor out there, but in general USA federal, state, municipal governments are all debtors, also USA corporations and individual are debtors. Of-course now that USA is this unproductive and cannot feed itself without 500Billion/year trade deficit deflation is worse for USA that inflation because Americans want to write off the value of the debt without paying for it.
Deflation increases the value of your savings, thus discouraging you from working
- and yet in the 19th century, on the gold (not standard, just on the gold), USA economy was actually growing and became the most productive economy, turning USA into a net exporter nation from being an importer and an afterthought to the European countries.
Currencies are stable when the money supply expands at about the same rate as the productivity of the country's citizens
- nice try, Orwell, currencies are stable when their value does not fall over time.
This completely Orwellian nonsense redefinition of stability as of something that is losing value at a constant rate is complete garbage that the mainstream and government propaganda has pushed over the last half a century to produce completely economically illiterate population (such as I am observing here now).
The other reason why Orwell would be proud of you today is that you actually bought into the 'increasing productivity of citizens' from your nonsensical government. USA productivity is so ridiculously low that it cannot feed itself without a yearly injection of over 500 Billion USD, which has been more or less the trade deficit for at least 20 years now.
The whole reason we abandoned the gold standard is that it's really stupid to base your economy's health on the gamble that the amount of gold miners dug out of the ground each year would match the rate of growth of your country's GDP.
- Ha ha ha ha, you abandoned the gold standard because your expenses have grown so far beyond your ability to produce that you had to *default* on the dollar and completely get away from the principle of sound money so that you could print your debts away, not for any other reason whatsoever.
As to the amount of gold, it's absolutely irrelevant, the year to year global production increases the total amount of accessible gold by about 1.5%. If USA actually wanted a *STABLE* inflation rate, it could *EASILY* stick to the global gold mining rate.
As to the number of recessions per year, all of them were due to government manipulation of the money supply, introduction/going of off of fiat (talking about the 19th century), introduction of the Federal reserve in 1913 and allowing the Fed to monetize Treasury debt in 1917, printing crazy amounts of money to buy bad UK debt from France in the late 1920s, which caused the bubble that blew up and that recession was turned into depression by Hoover's and FDR's policies of more monetary expansion and other intervention policies.
1971 default simply removed the remaining pretence to any form of stable money and allowed the government to increase inflation to the levels that businesses found it no longer acceptable to try and work within that system and moved production out of the country (and of-course the government growth became unstoppable with the unlimited printing powers, so taxes, laws, regulations became unstoppable as well, normal businesses could not compete with government connected and sponsored ones).
As to Bitcoin, it acts purely as money and has 0 intrinsic value (it has no value beyond being money), so it cannot replace real money that has value whether it is used as money or not. However this does not mean that Bitcoin cannot be used as a very interesting speculative instrument.