Deflation and the End of Fiat with Pierre Rochard and Morgen Rochard

Episode: Guests Pierre and Morgen Rochard, "The first couple of Bitcoin," discuss deflation and the end of fiat currencies Insight: Central banks in the US and around the world are almost unanimous in trying to target some level of annual inflation, often in the 2% range. Why? Today's guests say we should target annual DEFLATION, which in turn will encourage savings and fire up the free market system to deliver even better products that will prod people to spend their savings. 3 Quotes: We should actually be rewarding people for holding cash with deflation so that the purchasing power of their cash is increasing over time. And that would incentivize them to not just hold six months worth of expenses, but to hold much more than that.s In my mind, it's not really a question of, oh, do we go from the dollar to the Euro or do we go from the dollar to the Yuan? It's more of a question of, at some point, people are going to be frustrated with the idea of fiat currencies and they're just not going to want to use them anymore. I think it's going to be a pretty gradual process that people don't even realize it's happening until they wake up one day and it feels like it's an explosion and now everyone's using Bitcoin. In jurisdictions where the government is effective at creating a fixed exchange rate between Bitcoin and their currency, then their currency could survive. In jurisdictions where governments are unable to do that, and you have a free floating exchange rate, then I don't see how their currency can survive.