Why rich smart attractive males avoid marriage? Why religions teach you to get married? Why feminazis prevent consenting females from accepting high paying jobs and escaping patriarchal oppression? Why force and deceit are often more politically correct than consent in getting a mate? What should you do to help your self?
I mean there will be deflation. That’s one thing for sure. As technology goes up, cost of production is lower. So prices will drop.
What about interest rate? Will it be negative too?
Interest rate would drop I suppose. I mean money neutrality means that unless government do some “surprise” gold standard would not change anything. Main proponent of gold standard demand gold standard to prevent “surprise” from government.
So if gold price raise by say 6%. Current interest rate is 4%. I suppose interest rate would be around -2% if we use gold standard. But negative interest rate doesn’t make sense. Why would anyone save money if interest rate is negative?
Then how do we value the price of asset then?
Say interest rate is 4%. Then the value of assets is such that price per earning ratio is 25.
If we use gold standard interest rate drop to say, 1%. Then the value of that asset suddenly become 4 times. What am I missing?