Is Stagflation a bad thing?

Edit: yes it is. But what about stagnation?

There was the gold standard. But it seemed to only work during good times and was always ditched during big crisis like wars or recessions.

There was already an ugly mechanism where panic was used to steal gold from people while devaluing it, then revalue it and sell it back to them while devaluing paper.

But that was not good enough for the US, so they took advantage of their role in WW2 to setup the Brenton Woods system. USD became the reserve currency of the world, backed by gold.

Eventually US reached stagflation, as put in evidence by decades of sideways movement. The USD being so international was putting the US in an uneasy economic situation where long term growth of stock seemed impossible.

First they adjusted the price of gold, quietly, but once people caught on to it they just said “fuck it. I have a new toy”. The new USD was born, backed by a promise and a smile.

Maybe, when looking at indexes, stagflation is the healthy balance? Some companies flourish, some tank, but on the whole the value does not increase much, unless the country performs well with net balance of exports of goods and services.

A Bitcoin standard would ensure that a country reaches stagflation stagnation if it remains export/import balanced. Inflation would occur if it imports too much. Deflation if it produces more than what it needs.

Does not stagflation mean, energy, rent, food, goods, everything would always cost the same? Is that bad?

So, inflation is the only unwanted outcome of the three. Yet, it is the only outcome guaranteed by the FIAT standard.

It is not about the price of Bitcoin. It is about how many people think in Bitcoin.