Reddit reviews Paper Money Collapse: The Folly of Elastic Money

The idea that you need some price inflation to “encourage spending” and “stimulate the economy” is the propaganda being put out by the parasitic class that’s perpetuating and profiting from this MASSIVE scam. The truth is that you don't need to “encourage” people to spend money. Spending money is all that it's ultimately good for. So it's always a question of how you choose to allocate that spending across time, how much to spend today vs. tomorrow vs. next year, etc. Also consider that when you save money, you are in effect making an investment in the overall economy. Money isn't wealth. Instead, it allows you to make a claim on scarce, real resources. Money is an accounting system for facilitating the exchange of those resources by serving as a credible record of value given but not yet received. When you "just sit on money," the resources that you could have claimed immediately will instead remain available to be used by others -- whether for immediate consumption or investment. You have in effect loaned those real resources to the rest of society. So if we had a system with a fixed money supply, it makes sense to me that the purchasing power of that money should increase over time as the economy grows. In that scenario, the rate of price deflation is essentially the market-determined "interest rate" on a very low-risk loan that can be recalled at any time (by spending the money).

Or think about it from the opposite angle -- why an inflationary money supply doesn't make sense. Again, money is supposed to represent a credible signal of value given but not yet received. If there's an entity that can simply print new money into existence at essentially zero cost, the message carried by that new money is going to be a false one. I’m sure you can intuitively grasp how an ordinary counterfeiter is in effect stealing from others when he prints up phony hundred-dollar bills in his basement. Well the same is true of the more sophisticated counterfeiters in fancy suits who call their counterfeiting things like “open-market operations” and “quantitative easing.”

Recommended reading: Paper Money Collapse: The Folly of Elastic Money