3 ms·

So glad you asked... > Controlled inflation/devaluation fuels growth Sure - if you measure 'growth' in terms of the inflated asset. However, well, just look

by jl2718 5y ago

So glad you asked... > Controlled inflation/devaluation fuels growth Sure - if you measure 'growth' in terms of the inflated asset. However, well, just look at this chart: https://fred.stlouisfed.org/graph/?g=ERzc https://fred.stlouisfed.org/graph/?g=ERzc Take a good look. That's what total failure of an economic theory looks like. Edit: I do think you are way off on your points, but I am actually a believer in 'controlled inflation' for totally different reasons. But how to distribute new money creation? Here's a terrible idea: let the most powerful decide (fed/govt). Better idea: allow anybody to work for it (Bitcoin).

mgh2 5y ago
Screenshot link please? the graph does not load for me.
- tolbish 5y ago
  Try using desktop mode on your browser.
- jl2718 5y ago
  https://imgur.com/a/EgRehxM https://imgur.com/a/EgRehxM Spoiler: 80% drop in US GDP relative to monetary base.
  - deleted 5y ago
    [deleted]
NicoJuicy 5y ago
> That's what total failure of an economic theory looks like Giving graphs with a clearly opinionated statement is not what i call an answer/explanation. > in recent decades, research has shown that the relationship between growth in the money supply and the performance of the U.S. economy is becoming weaker. https://www.investopedia.com/ask/answers/070615/what-correlation-between-money-supply-and-gdp.asp https://www.investopedia.com/ask/answers/070615/what-correla... I'm not really sure why you think "this" graph is "that" important? I'm not even sure why it would help the use-case for Bitcoin and "decentralization". Bitcoin is a bad implementation if you want controlled inflation. It doesn't respond to any actual economic incentives that have to be done. It's like resetting everything we learned in the last 100's of years. And yes, a centralized structure is how things like that are decided. Here's a crypto bank run of 4 days ago - https://finance.yahoo.com/news/iron-finance-details-defi-bank-052135662.html https://finance.yahoo.com/news/iron-finance-details-defi-ban... Crypto has a long way to go and currently it's full of fraud. ( Or greed) And if I'm not mistaking. I think crypto is going to start it's fast decline cycle again, just like in 2017-pandemic. Ps. Crypto is owned by whales and not even possible to regulate. It's ridiculous trying to adopt it as a country. Lightning network breaks it's core utility ( on chain transactions & decentralization) while fixing something else ( expensive and slow transactions) And don't get me started on stable coins :)
- jl2718 5y ago
  This is just some guy’s pontification. The chart I gave is the exact relationship asked in the question. Your “100s of years” of economics is just a bunch of powerful people deciding how to spend less powerful people’s money. Bitcoin turned into hydroelectric dams, solar panels, geothermal, and 5nm chips years ahead of the M1. Amazing how the free market can do all that with something intended to be wasteful, while the centralized authority produces economic disasters with the best of intentions. Comments about fraud are non-sequitur. 0.1% of Bernie Madoff, former Chair of NYSE. But of course we all want to do better, and that’s why we will. They don’t and won’t.

by jl2718 5y ago

mgh2 5y ago

Screenshot link please? the graph does not load for me.

tolbish 5y ago
Try using desktop mode on your browser.
jl2718 5y ago
https://imgur.com/a/EgRehxM https://imgur.com/a/EgRehxM Spoiler: 80% drop in US GDP relative to monetary base.
- deleted 5y ago
  [deleted]

NicoJuicy 5y ago

> That's what total failure of an economic theory looks like Giving graphs with a clearly opinionated statement is not what i call an answer/explanation. > in recent decades, research has shown that the relationship between growth in the money supply and the performance of the U.S. economy is becoming weaker. https://www.investopedia.com/ask/answers/070615/what-correlation-between-money-supply-and-gdp.asp https://www.investopedia.com/ask/answers/070615/what-correla... I'm not really sure why you think "this" graph is "that" important? I'm not even sure why it would help the use-case for Bitcoin and "decentralization". Bitcoin is a bad implementation if you want controlled inflation. It doesn't respond to any actual economic incentives that have to be done. It's like resetting everything we learned in the last 100's of years. And yes, a centralized structure is how things like that are decided. Here's a crypto bank run of 4 days ago - https://finance.yahoo.com/news/iron-finance-details-defi-bank-052135662.html https://finance.yahoo.com/news/iron-finance-details-defi-ban... Crypto has a long way to go and currently it's full of fraud. ( Or greed) And if I'm not mistaking. I think crypto is going to start it's fast decline cycle again, just like in 2017-pandemic. Ps. Crypto is owned by whales and not even possible to regulate. It's ridiculous trying to adopt it as a country. Lightning network breaks it's core utility ( on chain transactions & decentralization) while fixing something else ( expensive and slow transactions) And don't get me started on stable coins :)

jl2718 5y ago
This is just some guy’s pontification. The chart I gave is the exact relationship asked in the question. Your “100s of years” of economics is just a bunch of powerful people deciding how to spend less powerful people’s money. Bitcoin turned into hydroelectric dams, solar panels, geothermal, and 5nm chips years ahead of the M1. Amazing how the free market can do all that with something intended to be wasteful, while the centralized authority produces economic disasters with the best of intentions. Comments about fraud are non-sequitur. 0.1% of Bernie Madoff, former Chair of NYSE. But of course we all want to do better, and that’s why we will. They don’t and won’t.