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The important thing for the aggregate economy is that when people want "hard assets", that these assets can tangibly support future consumption, not just someth

The important thing for the aggregate economy is that when people want "hard assets", that these assets can tangibly support future consumption, not just something everybody hopes to trade later for consumption but real stuff such as businesses, inventory, production capacity etc. When too many people hoard pure financial promises or crypto tokens and all believe that it's true wealth, bad things happens. People indirectly owe each other all their savings.

BenoitEssiambre 6y ago
>QE, interests rates at near zero, corporate bonds near worthless, stock market at stratospheric 2000-like levels... To be clear, the above is good, if interest rates on government paper were above risk adjusted market returns for new capital this would gridlock the economy. Stock market being high incentivizes creating new capital. > how do you protect your treasury other than stashing it in hard assets (crypto, gold, commodities)? The government should not create artificial assets that "protects" wealth from being subject to the real economy because people divesting from the economy destroys the economy. Now there is a question whether the market will choose to go into crypto and divest from the real economy anyways. The reason this is a question is that people have been known to pile into bubbles in the past, and this is the tricky part, on some level they are not totally irrational in doing so. To the individual, being early in a long running bubble is advantageous. When you do it, and do it first, you gain. Everybody doing it however, may cost you and your friends, family's and everybody's careers. It's a prisoner's dilemma, a bad Nash equilibrium. It's Moloch.