The Injustice of Deflation: The Price Society Pays for Truth and Freedom

In an age dominated by fiat money, where central banks control the flow of currency and manipulate the value of money through inflationary policies, the idea of hard money—money with a fixed supply—seems foreign. But it is precisely this concept of hard money that brings us face to face with one of the most fundamental questions of our economic and moral existence: the temporal injustice of deflation.

The Temporal Injustice of Deflation

Deflationary systems, in which the money supply is fixed and the value of money increases over time, introduce a temporary asymmetry that can feel unjust. At first glance, deflation rewards early savers disproportionately. In a hard money regime—such as one based on gold or Bitcoin—those who accumulate money early see its purchasing power rise, while those who earn or enter the system later face a steeper exchange rate for the same goods and services.

For example, if someone today works two hours to earn a sum of money, and that same sum, had it been earned a decade earlier, was sufficient to buy the same labor for only one hour, then the person in the past appears to have received more value for less time. This reveals a temporal asymmetry: labor performed earlier yields more durable command over future labor than labor performed later. The present is discounted relative to the past—not because of moral failure, but because of the system's dynamics.

This raises uncomfortable but necessary questions: Should work done in the past command more value than work done today? Should time and resources offered now be subordinated to the accumulations of the past? In the early phases of deflation, it can feel as though the past exercises leverage over the present—not through coercion, but through preserved scarcity.

This perception of imbalance—of yielding more labor for less return compared to the past—strikes many as unfair. It feels like the present is laboring under the weight of the past. In this way, a deflationary system can seem, at first, to entrench inequality—a system tilted toward injustice.

But this is where the profound insight of a logarithmic, asymptotic deflationary curve comes into play.

The Asymptotic Nature of Deflation: A Necessary Evolution

In a system with a fixed money supply, the deflationary pressure eventually stabilizes over time. In the early stages, the benefits of saving are significant—early participants in the system experience substantial increases in purchasing power. But over time, as more people enter the system, as production increases, and as the population grows, the rate of deflation slows. This is because the value of money becomes increasingly difficult to push upward—it asymptotically approaches stability. Read more on this phenomenon here

This asymptotic curve of deflation means that the temporary injustice is finite. It is not permanent. The early inequality that seems so pronounced in the beginning fades as the system matures. The early holders of money are not forever unchallenged in their position; the system self-corrects, and over time, the deflationary pressure becomes more moderate. Prices stabilize. The purchasing power of money becomes more predictable and equitable for all.

In other words, the early deflationary injustice, though real and apparent in the beginning, fades. This is not an eternal injustice; it is a temporary one, as the market finds equilibrium and the value of money becomes more evenly distributed.

Thus, the temporary injustice of a deflationary system is not something to fear—it is the necessary price we pay to restore truth to the market. The deflationary system cuts off the hidden theft of inflation and fiat manipulation, where the value of money is arbitrarily diluted and those closest to the money printer gain power at the expense of the people. The deflationary system, though imperfect in its early stages, provides a clearer vision of value, free from manipulation, providing more truth of the market and a better understanding of society as a whole.

The Price of Truth: Enduring the Injustice

The key insight here is that the temporary injustice of deflation is preferable to the eternal injustice of inflation and the arbitrary manipulation of money. Just as Christ taught in Matthew 18:9, “If thine eye offend thee, pluck it out, and cast it from thee: it is better for thee to enter into life with one eye, rather than having two eyes to be cast into hell fire.”

In the context of money, the eye that offends is the fiat system—a currency that artificially inflates and distorts the truth of the market. The temporary deflationary asymmetry we endure under a fixed-supply system is like the plucked eye—uncomfortable, but ultimately necessary for our salvation. It is better to enter into economic freedom, truth, and stability with one "eye," enduring the temporary injustice of deflation, than to remain blind to the realities of monetary theft and continue on the path that leads to collapse and destruction.

Matthew 6:22 also speaks to this: “The light of the body is the eye: if therefore thine eye be single, thy whole body shall be full of light.” A system based on sound, hard money, where the value of money is fixed and truth is clear, illuminates society. When we pluck out the corrupt system of fiat currency, we are left with clear vision—no longer deceived by the false light of inflationary manipulation, but able to see the truth of our economic interactions and the world around us.

A Clearer Vision of Society

When we embrace a deflationary system, we are not committing to eternal injustice. We are choosing truth—a system that is logarithmically asymptotic in nature, where early injustices fade and society stabilizes into a clearer understanding of value. This allows us to see more clearly, both in economic terms and in the moral realm.

The price we pay for this clarity is temporary. But the reward, in the long run, is not only a more just and stable society, but a more honest vision of the world. The temporary injustice of deflation is the price we pay for escaping the eternal injustice of money printing, theft, and manipulation. It is the price we must endure to enter into the Kingdom of Heaven, not just in a spiritual sense, but in a civilizational one, where truth reigns.

In conclusion, the deflationary asymmetry we see in hard money is not a fatal flaw—it is a temporary imbalance that is necessary for the restoration of truth and justice. As we endure this price, we must remember that it is better to live with this temporary discomfort than to continue in the hellfire of manipulation and inflation. As Christ admonished us, sometimes it is better to pluck out the eye—even if painful—if it leads us to life.