Re: New Kinds of Currency Proposed

Michał Gancarski wrote:

You just described savings. Boy, are they bad.

You have no clue what you are talking about.

Savings imply you put money into a bank. The bank use them and because of
that they give you a payment (saving interest). The money are used (aka
invested) which in exchange stimulate the economy.

Hoarding money means you put money under matres. They are not used, not
invested, not recirculated into the economy. There are no people payed from
that money to create new stuff. If to many people keep money under matres
there is going to be cash shortage in the society.

In today's monetary system, hoarding money won't pay any interest rate.
Worst than that they devaluate with inflation therefore making hoarding
money a very bad option for savings. Inflation is deterrent against
hoarding money, therefore forcing people to recirculate them into the
economy avoiding the liquidity (cash) shortage.

Into a society with the currency based on gold standard, hoarding money can
actually pay off. Whenever there is a perceived crisis, people will just
hoard cash and this strengthen the crisis.


So, hoarding money it is not saving. Is that clear?

.

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