r/PeterExplainsTheJoke 9h ago

Meme needing explanation Petah?

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u/SquareJerk1066 3h ago edited 3h ago

This is outrageous.

No. I would not. In a deflationary spiral, not only would the price of gold be lower, everyone would have less money to buy things with. When you have no money, you can't spend it on buying gold. Therefore, I would not buy gold because I would not have the money to buy gold.

Are you satisfied? Maybe it would help if I asked what specifically about my answer is confusing or seems like an evasion, since I've explicitly answered it with a "no" twice now.

Edit: since I look like an asshole, I would like to note that the comment this is replying to has edited itself. It originally asked me, yet again, to answer the question and explain, and has now changed to a thank you, asking why answering was so hard for me.

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u/Terpcheeserosin 2h ago

"If gold goes down in price that means I have no money" - you

I don't think this true

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u/SquareJerk1066 1h ago

Deflation isn't just gold going down in price. It's everything. Deflation is the increase in the value of the dollar. Which sounds good because it seems like you'd be able to buy more stuff, but it's not because it means you would also have fewer dollars overall, for the reasons I described.

This tends to feed back on itself and create a situation that is very hard for a country to escape. It's what caused the Great Depression. You're essentially asking why people didn't just buy the dip during the Great Depression when the entire world's stock market was 50% off. It's because they didn't have any money, and what money they did have went straight to necessities.