EU Countries Have No Inflationary Options

If Bitcoin’s deflationary attributes are detrimental as many of its detractors say then the members of the European Union that are currently in the midst of severe economic problems (Spain, Portugal, Greece, Ireland, Cyprus et al) are doomed since the traditional weapon against economic stagnation has been the infusion of large amounts of illusionary (i.e. fiat) money into the economy. But since only the European Central Bank can issue money those nations mentioned have nothing except austerity to combat their woes.

I don’t believe those nations are doomed, however, as I believe living within one’s means (as they are forced to do there) is the wise road to travel. The road that the U.S. is on whereby the Federal Reserve Bank is just flooding the economy with phony money is the opposite of wise (i.e. is foolish) and will come to a horrible end.

But having said that, if austerity and deflationary actions are viable in the E.U. then, certainly, the deflationary nature of Bitcoin should not be looked at as a flaw either.

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