ppauper wrote:Traden4Alpha wrote:What's misleading about ppauper's chart is the absolutely massive increase in productivity that has bolstered wages and cut the prices of consumer goods denominated in wages. Go back and look at the price of a car in 1913, the median wage in 1913, the features of that 1913 car and then compare that to a 2017 automobile bought with the 2017 median wages. A 1913 dollar was surely worth far less than a 2017 dollar because no amount of 1913 dollars could buy the knds of goods that 2017 consumers buy today.
Unless you're claiming that any productivity increases since 1913 were caused by the Fed, I'm not sure what your point is. Inflation destroys savings.
Inflation only "destroys" cash, not savings that are invested in the economy. A stable rate of inflation is not a problem. What is worse than inflation is volatility in an currency (rapdi changes in inflation/deflation) which can bankrupt either lenders or borrowers depending on the direction of the movement. Gold (and BTC) are horrible as a store of value because their price flucuates so much. BTC is especially bad even as a medium of exchange because the currency can fluculate several percent just within the time frame of a single USD->BTC->USD roundtrip.