Government declares gold is legal tender for payment of debt and taxes.
Person A and B have 100 ounces of gold each.
Person A spends 100 ounces of gold to buy a warehouse.
Deflation makes the gold worth twice as much and the warehouse worth half as much.
Person A has a net worth of 50 ounces of gold with his warehouse. Person B has a net worth of 100 ounces of gold.
Person B has stolen 50 ounces of gold from Person A with the help of the government making gold to be legal tender.
Why would anyone buy a warehouse and start a business if you get more value from doing nothing and letting the golden legal tender steal a free lunch for you?
Deflation steals value from all real assets and redistributes the value to those holding monetary units. When government makes gold legal tender and legalizes theft through deflation, it is socialism for the idle, lazy, and non-productive rich, specifically Ron Paul and his golden comrades in the gold boiler room.
Read “Commodity Monetarism is a Trick Mechanism of Usury and Coercion” if you want more logic.