In looking at the MER for August and looking specifically at the money supply I think CCP needs to sit down and very seriously think about what is going on with the money supply.
All the early gains in the money supply for 2019 have been more than wiped out.
Now some (economic know nothings) might think this is good. It isn’t. Having a money supply contract sharply can lead to deflation. Deflation is bad because it can lead to a collapse in consumption spending which in turn leads to a collapse of the economy.
Yes…the real world:
During the Great Depression this was the primary problem. In the U.S. the central bank let the money supply collapse during the start of a recession. This lead to substantial deflation which caused people to hoard cash. The reason is holding cash now has a positive return. So any and all consumption spending that could be put off was. This means firms suddenly saw a lack of buyers and eventually started firing workers and even shutting down. Even in 2008/2009 there was considerable concern about deflation as a result of foolish moves by the Federal Reserve during the early days of the recession. At that time the Fed was still worried about inflation and was contracting the money supply. Even when they’d give money to banks after problems became apparent they’d “sterilize” it first (take an equivalent amount out of the money supply first so the net change was zero).
Now some might be tempted to say, “But the real world doesn’t apply to the game!”
Okay fine, then STFU about an increasing money supply and inflation because you dipshits are making the same goddamn argument. You are looking at real world events and data and history and extrapolating to the game.
We can also see this effect graphically,
And look at the price indices. In particular the CPI has been pretty goddamn flat since 2000-f–king-12.
The evidence has been sitting in front of everyone’s face yet there is strange and cult like fascination on inflation.