Economic Misconception

[FlyingJesus]

purchasing power of a currency is deflated

Well done, that along with your own quote in your post show that you were wrong from the start - HC furniture will decrease in value. If the prices of other things rise, then the Club Sofa itself will be worth proportionally less, and hence will have lost value. As you said yourself, the purchasing power will be deflated, which as far as I remember means it will go down. Oops, didn't mean to burst your little bubble of Habbo happiness, but people need to be told when they're wrong.

As for having a "vague" hold on what inflation is, it's not like there are different levels of understanding about it, in fact you summed it up comletely in a single sentence. I make that 2-0 to me.

[visa.]

You really are daft.

The purchasing power of a currency falling does not relate to it's worth. Power and worth are two different things. The worth of a Club Sofa is how many credits of normal furniture it takes to buy one (a comparable 'step below' medium). The purchasing power indicates how much product it can buy.

A dollar is always worth a dollar. A pound is always worth a pound. The price to buy, say, a pack of candy may rise from $1.00 to $1.50, but the dollar is still worth 100 cents.

Really though, it's cute how you try to make points and all. Kind of cheers me up seeing someone so hopeless with so much effort.

[FlyingJesus]

Purchasing power does denote the worth of something, as with no purchasing power, something becomes worthless. Germany post-war with hyperinflation for example, the Mark was still the Mark, but it was worth nothing. A note for one thousand Marks were still made up of one thousand Marks, but was worth less than previously. To say that something is still worth the same because it's made up of the same amount of something lower is stupid, and wrong. Purchasing power is exactly the same as worth, because without purchasing power there is no worth to something. You wouldn't want money if it had no purchasing power - it would be worthless.

[ColyTom]

During inflation: young children played with bricks made of money notes, someone had a carrier bag full of money nad someone stole the bag because it was worth more, A man used a whole wheelbarrow full of money to buy a loaf of bread etc

As I said before, the club sofa won't fall much unless it gets replaced by something that people like as much. The whol trading system is based mainly on the club sofa so it won't fall much.

[Kardan]

During inflation: young children played with bricks made of money notes, someone had a carrier bag full of money nad someone stole the bag because it was worth more, A man used a whole wheelbarrow full of money to buy a loaf of bread etc

As I said before, the club sofa won't fall much unless it gets replaced by something that people like as much. The whol trading system is based mainly on the club sofa so it won't fall much.

Well, if the club sofa was said to be going into the catalogue like the throne was, would it fall in price? Yes.

[-:Undertaker:-]

During inflation: young children played with bricks made of money notes, someone had a carrier bag full of money nad someone stole the bag because it was worth more, A man used a whole wheelbarrow full of money to buy a loaf of bread etc

As I said before, the club sofa won't fall much unless it gets replaced by something that people like as much. The whol trading system is based mainly on the club sofa so it won't fall much.

Club Sofa will fall in price.

EG: If 10,000 more White Birdbaths were released would the White Birdbath fall in price? Yes.

Hc's will get too common, So then people will go "Why pay for something thats theres loads of?"

HC Sofa will stay at 1HC - Thats just a name not a Value.

So in the future it could be 1HC = 35 RD

So it would be 2 Hcs for my Purple Fan.

But eventually the HC wouldnt be used as the main "Currency".

[ScouseOrient]

Purple fans arnt out?

[ColyTom]

Well, if the club sofa was said to be going into the catalogue like the throne was, would it fall in price? Yes.

Yeah but the club sofa won't be released into the catalogue

[Kardan]

Yeah but the club sofa won't be released into the catalogue

Won't it? You can't 100% guarantee it.
Remember when the staff in October made it sound like the Throne qwas coming out on purpose? It dropped to 4hc?
Exactly.

[ColyTom]

Purple fans arnt out?

He never said they were, he was using it as an example.