The dangers of a strong currency...

pqrdef

Degenerate wrote: »

Currency exists as a means of exchange to facilitate trade. It has no real value by itself, and people should not be encouraged to hoard it, as this interferes with it's primary purpose by reducing the supply available to keep economies moving.

If you want to preserve your wealth, put it into tangible assets.

You're confusing currency with cash.

People hoard their money by lending it to banks. The entire capitalist system depends on the idea that people can preserve their wealth this way instead of buying tangible assets.

Degenerate

pqrdef wrote: »

People hoard their money by lending it to banks.

True, but too much saving instead of spending would lead the economy to grind to a halt. This is one reason why it is recognised that a small positive inflation level, rather than zero, is the ideal. With inflation taken into account, most deposits are earning negative "real" interest rates at the moment. You can just about make a gain on a good ISA, but that is limited by the allowance.

The entire capitalist system depends on the idea that people can preserve their wealth this way instead of buying tangible assets.

See above. People holding money on deposit are mostly not preserving their wealth at this point in time.

Joe_Bloggs

You can just about make a gain on a good ISA, but that is limited by the allowance.

The allowance might be more than sufficient for some of us poor folk.
J_B.

sabretoothtigger

Degenerate wrote: »

True, but too much saving instead of spending would lead the economy to grind to a halt.

Money in a bank is being used. Buried in the ground you have more of a point

It has no real value by itself, and people should not be encouraged to hoard it,

Money not used is capital available for investment and use by business. We have the whole world upside down and now we all believe magic is real and somehow money is bad and debt is a good thing. Until we have to repay I guess it is