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You agree with me that it's mostly about insider trading, not about skin in the game. Deflation is not that hard, just dampen social security. Or stop half of

You agree with me that it's mostly about insider trading, not about skin in the game. Deflation is not that hard, just dampen social security. Or stop half of military contracts and half of infrastructure spend. Or just go to the federal budget and do anything to reduce it by > 30%. You'll have a deflation (a recession) in a month, even before those changes actually go into effect.

chii 7y ago
> Deflation is not that hard, just dampen social security classic HN backseat driver - everything is easy, "just" do XYZ.
- H8crilA 7y ago
  The US federal budget is 21% of US GDP. Reduce it by 30%, that will cause a 7% drop in GDP and a deflationary recession. Reduce it by 50% and you have a 10% drop, very substantial. I really don't understand what's difficult about this. You can also jack up taxes and start paying off govt debt instead of spending it on something new. Would have similar effects. If you think I'm wrong please write why or post a link with some economic thought, would be curious to read.
  - sk5t 7y ago
    The gist is that you will not be able to move the needle with any effectiveness. Reduce the federal budget by 30% by force of will, or what? This is "first, convert 1kg lead to 1kg gold" level thinking.
    - H8crilA 7y ago
      I agree. That's what I mean by "it seems to be more for you guys about insider trading than about skin in the game". Edit: I think I understood it. You mean that broad, "macro-like" allocation would prohibit shenanigans with assets in narrower domains, like for example when a congressman successfully pushes a particular drugs-related law that has very big impact on a some particular pharma company. It is more realistic that they can change a single paragraph in some act than they can throw out 30% of the federal budget to "finally start paying back our enormous national debt".
ojbyrne 7y ago
My understanding is that it’s easy to start deflation. But it’s hard to stop deflation.
walshemj 7y ago
screws anyone with a loan / mortgage

chii 7y ago

> Deflation is not that hard, just dampen social security classic HN backseat driver - everything is easy, "just" do XYZ.

H8crilA 7y ago
The US federal budget is 21% of US GDP. Reduce it by 30%, that will cause a 7% drop in GDP and a deflationary recession. Reduce it by 50% and you have a 10% drop, very substantial. I really don't understand what's difficult about this. You can also jack up taxes and start paying off govt debt instead of spending it on something new. Would have similar effects. If you think I'm wrong please write why or post a link with some economic thought, would be curious to read.
- sk5t 7y ago
  The gist is that you will not be able to move the needle with any effectiveness. Reduce the federal budget by 30% by force of will, or what? This is "first, convert 1kg lead to 1kg gold" level thinking.
  - H8crilA 7y ago
    I agree. That's what I mean by "it seems to be more for you guys about insider trading than about skin in the game". Edit: I think I understood it. You mean that broad, "macro-like" allocation would prohibit shenanigans with assets in narrower domains, like for example when a congressman successfully pushes a particular drugs-related law that has very big impact on a some particular pharma company. It is more realistic that they can change a single paragraph in some act than they can throw out 30% of the federal budget to "finally start paying back our enormous national debt".

ojbyrne 7y ago

My understanding is that it’s easy to start deflation. But it’s hard to stop deflation.

walshemj 7y ago

screws anyone with a loan / mortgage