If Capital appreciation is the sole source of wealth, why does the government want to make it illegal/impossible to save money?

Under the fiat system, the government treats all economic problems as resolvable with low interest rates that shift capital from investment to consumption. This is exactly like a farmer who has a poor harvest due to a drought, and decides to resolve it by eating through his seed crop and growing fat(which convinces himself he's doing very well), but leaves nothing to plant the next year's crop. What is true for the farmer is equally true in the economy -- the more we consume today, the less we will have tomorrow.

When many people "hoard" money, they increase its value, which allocates capital toward those who are best able to invest it, but does not force anyone to spend or invest for the sole purpose of escaping inflation. The result is a continually increasing capital stock, and prosperity.

Contrast this with Japanese perpetual zero interest rate policy, where money, unable to earn a return, flees the country as fast as it is earned, and you will understand the economic purpose of Bitcoin.

Future economists will look back at early 21st century monetary policy as an unmitigated disaster, worse than even mercantilism.

Submitted August 18, 2019 at 11:38PM by MrCumsHisPants https://ift.tt/2KOpWMw