5 ms·

The solution is sound money, money not based on thin air like the current fiat system. So that nobody can "pump into the economy" and reinforce the Cantillon ef

by nnx 5y ago

The solution is sound money, money not based on thin air like the current fiat system. So that nobody can "pump into the economy" and reinforce the Cantillon effect over and over.

atweiden 5y ago
Seconded. Currency debasement plays an instrumental role in real estate speculation. If investors could just count on their cash to retain and increase in value over time, their insatiable appetite to own real estate as an inflation-resistant asset would relent. Fix the money, and fix the housing affordability crisis. Slash the demand to buy housing as an investment.
- randomhodler84 5y ago
  Eventually, a house will be a fraction of a Bitcoin. How do I know this? There are many more than 21 million houses on Earth.
  - chii 5y ago
    you'd sooner see houses sell for bullets and guns than for bitcoins imho.
- imtringued 5y ago
  If you make money more expensive nominal house prices might drop but you also made it harder to acquire money in the first place. Ultimately the only difference is that more money goes to the banks instead of the land owner. It doesn't create more land or housing. The supply and demand mismatch hasn't been solved.
  - atweiden 5y ago
    > If you make money more expensive nominal house prices might drop but you also made it harder to acquire money in the first place. In a deflationary environment, as housing/rent prices drop, savers are rewarded. Renting doesn’t entail taking out a mortgage. > It doesn't create more land or housing. Nor does building more housing in an inflationary environment necessarily satiate investor demand for inflation-resistant assets in the form of residential property.
imtringued 5y ago
The cantillon effect only exists for taxes and government spending. You have a bank in every city, private money creation is fully geographically decentralized. Also, "sound money" is anti democratic because the whole point of a fixed supply is to make money exclusive and let existing social classes maintain their status (kings and aristocrats owned a lot of gold mines and thereby controlled the economy)
- atweiden 5y ago
  What even is “democratic money”? We live in a plutocracy, do we not [1]? > whole point of a fixed supply is to make money exclusive In this case, it’s to obviate the need to take your inflationary funbucks to what is essentially a casino, or otherwise park it in residential property in the hopes of not getting debased. [1]: http://www.princeton.edu/~mgilens/Gilens%20homepage%20materials/Gilens%20and%20Page/Gilens%20and%20Page%202014-Testing%20Theories%203-7-14.pdf http://www.princeton.edu/~mgilens/Gilens%20homepage%20materi...

by nnx 5y ago

The solution is sound money, money not based on thin air like the current fiat system. So that nobody can "pump into the economy" and reinforce the Cantillon effect over and over.

atweiden 5y ago

Seconded. Currency debasement plays an instrumental role in real estate speculation. If investors could just count on their cash to retain and increase in value over time, their insatiable appetite to own real estate as an inflation-resistant asset would relent. Fix the money, and fix the housing affordability crisis. Slash the demand to buy housing as an investment.

randomhodler84 5y ago
Eventually, a house will be a fraction of a Bitcoin. How do I know this? There are many more than 21 million houses on Earth.
- chii 5y ago
  you'd sooner see houses sell for bullets and guns than for bitcoins imho.
imtringued 5y ago
If you make money more expensive nominal house prices might drop but you also made it harder to acquire money in the first place. Ultimately the only difference is that more money goes to the banks instead of the land owner. It doesn't create more land or housing. The supply and demand mismatch hasn't been solved.
- atweiden 5y ago
  > If you make money more expensive nominal house prices might drop but you also made it harder to acquire money in the first place. In a deflationary environment, as housing/rent prices drop, savers are rewarded. Renting doesn’t entail taking out a mortgage. > It doesn't create more land or housing. Nor does building more housing in an inflationary environment necessarily satiate investor demand for inflation-resistant assets in the form of residential property.

imtringued 5y ago

The cantillon effect only exists for taxes and government spending. You have a bank in every city, private money creation is fully geographically decentralized. Also, "sound money" is anti democratic because the whole point of a fixed supply is to make money exclusive and let existing social classes maintain their status (kings and aristocrats owned a lot of gold mines and thereby controlled the economy)

atweiden 5y ago
What even is “democratic money”? We live in a plutocracy, do we not [1]? > whole point of a fixed supply is to make money exclusive In this case, it’s to obviate the need to take your inflationary funbucks to what is essentially a casino, or otherwise park it in residential property in the hopes of not getting debased. [1]: http://www.princeton.edu/~mgilens/Gilens%20homepage%20materials/Gilens%20and%20Page/Gilens%20and%20Page%202014-Testing%20Theories%203-7-14.pdf http://www.princeton.edu/~mgilens/Gilens%20homepage%20materi...