Just like central bankers with paper currencies, airlines are devaluing their miles.
They have created trillions of miles in the system, many of these through special gimmick promotional giveaways. We’ve probably all seen the ‘sign up for the new credit card and receive 25,000 bonus miles’.
But just like the real economy, rapidly increasing the money supply (airline miles) devalues the currency and creates inflation.
That’s exactly what’s happening here. Airline miles are worth less and less.
(Picture CC Consumerist Dot Com)