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> Not sure if you know this, but dropping interest rates is a policy that is strictly speaking opposed to taming inflation. It in fact creates inflation. You mi

by bullen 7y ago

> Not sure if you know this, but dropping interest rates is a policy that is strictly speaking opposed to taming inflation. It in fact creates inflation. You might have your history wrong? Doesn't this depend on how much of the money supply is debt? I agree that dropping interest below zero when 99% of the money is debt can be inflationary, but back then maybe most money was "real" (not debt) and then dropping interest would have been deflationary?

rb808 7y ago
Money==Debt by definition. Except back in the gold standard perhaps.
rurhdheiwk 7y ago
Shut the fuck up, you have no idea what you're talking about and should be "ashamed" (not proud) of speaking like you do.
dnautics 7y ago
1) as to 'real'ness, which is not really I think anything I can comment on (or IMO, any honest economist can) writ large -- in the 80s we were well past nixon shock when the US detached from the Bretton Woods II. 2) Perhaps you're referring to reserve limits holding back the money multiplier to a maximum of 10x, which would make it realer than now, when the multiplier is unbounded?... Even if money is realer, if we have any debt at all (presumed by the notion of an interest rate lever) you are lowering the price of debt, which encourages borrowing, meant to or not, which will not pump M0 but will increase the amount of money that people think they have (presuming they can be paid back as creditors), or really, the amount of money that people think they have in their bank accounts that they think their banks can recover from their leveraged adventures. 3) now probably the real fake labor subjective value of money is neither true to the austrian nor the keynesian/chicagoan extremes, certainly not the smith/marx/ricardian absolute (I mean let's say you do something crazy like save the earth from an asteroid strike, how much was that one hour of looking at a photograph worth surely not the same as one hour of a worker in a nail factory), and not really a thing that depends entirely on M0 nor the velocity of money (an immesurable measurable if ever there was one) in which case who the hell knows. In the end we're all dead anyways. The three universal truths are death, taxes, and network splits.

by bullen 7y ago

rb808 7y ago

Money==Debt by definition. Except back in the gold standard perhaps.

rurhdheiwk 7y ago

Shut the fuck up, you have no idea what you're talking about and should be "ashamed" (not proud) of speaking like you do.

dnautics 7y ago

1) as to 'real'ness, which is not really I think anything I can comment on (or IMO, any honest economist can) writ large -- in the 80s we were well past nixon shock when the US detached from the Bretton Woods II. 2) Perhaps you're referring to reserve limits holding back the money multiplier to a maximum of 10x, which would make it realer than now, when the multiplier is unbounded?... Even if money is realer, if we have any debt at all (presumed by the notion of an interest rate lever) you are lowering the price of debt, which encourages borrowing, meant to or not, which will not pump M0 but will increase the amount of money that people think they have (presuming they can be paid back as creditors), or really, the amount of money that people think they have in their bank accounts that they think their banks can recover from their leveraged adventures. 3) now probably the real fake labor subjective value of money is neither true to the austrian nor the keynesian/chicagoan extremes, certainly not the smith/marx/ricardian absolute (I mean let's say you do something crazy like save the earth from an asteroid strike, how much was that one hour of looking at a photograph worth surely not the same as one hour of a worker in a nail factory), and not really a thing that depends entirely on M0 nor the velocity of money (an immesurable measurable if ever there was one) in which case who the hell knows. In the end we're all dead anyways. The three universal truths are death, taxes, and network splits.