4 ms·

Inflation might a problem but a world where countries would no longer be able to adjust the value of their money isn’t scarier? Wouldn’t we be giving up an ess

Inflation might a problem but a world where countries would no longer be able to adjust the value of their money isn’t scarier? Wouldn’t we be giving up an essential lever to adjust to changing economical conditions?

xiphias2 5y ago
The only thing that changes is that governments have to raise the taxes from people explicitly instead of a hidden inflation tax. I think it’s great for goverments as well, as it gives them more responsibility over how they are spending money. Norway of a great example of people paying high taxes because they see the government as responsibly spending and reinvesting its tax revenue. I never asked money from other people in my life, I was spending only what I earned, and I feel this way of living is a more honest and sustainable way of living.
- it_citizen 5y ago
  How do you keep inflation within an economic zone between 2 and 3 percent without control over your money? No matter if the economic growth is between -1% and 10%?
  - xiphias2 5y ago
    Bitcoin has a built in inflation schedule. If you believe that over long term price inflation of scarce assets (like New York real estate) will follow the inflation of the emission of the currency (which I believe), Bitcoin will make sure it will stay under 1% in the future. Right now Bitcoin is in the adoption phase, that’s why people are seeing the crazy price moves, but I expect it to normalize in the future (maybe 10 years from now).
    - it_citizen 5y ago
      I am not talking about scarce assets but of the entire economy of a country. Concretely, how would bitcoin would manage to keep inflation in a healthy range (1.5%-3%) given that we can no longer decide to emit or remove money from the system as the situation evolves? If the world goes into recession vs know an economical boom, you don't want to emit the same amount of money into the system. Also, if two economic zones have very different growth rates, how does that work with a global currency like bitcoin?
      - xiphias2 5y ago
        Can you tell me a period of time from history when governments were removing money from the system (spending less than they were raising taxes and paying back their bonds without creating more debt)? It never happens. What governments are doing is unsustainable, people are not happy with the trillions of dollars they are printing and buying up scarce assets (which are the most imporant things for people…good luck living in an email inbox for free).
      - landemva 5y ago
        If by inflation you mean the rise in general prices, or the destruction of the purchasing power of the monetary unit, then the track record is that btc will continue to be deflationary in that your purchasing power will be increased. If you don't like increased purchasing power, there are alternatives such as holding most any government issued monetary unit.
zionic 5y ago
> Wouldn’t we be giving up an essential lever to adjust to changing economical conditions? Who’s we? You, I, and most people have zero ability to move those levers. The question is should they have access to those levers and I firmly believe the answer is no. I’d rather have a world with sound money and no one in control than the people who have dominated the west for the last 100+ years.
- it_citizen 5y ago
  We as “citizen of a nation”? If nations no longer control their money, does it mean they can go bankrupt? They can no longer adjust their money to influence their commercial balance? Would have the EU and the US been able to create stimulus packages? What about adjusting the inflation to the economic growth rate of a country? (Genuinely asking)
  - landemva 5y ago
    We could replace the contract company 'Federal Reserve' (not gov't agency and no gov't employees) with a growth rate formula. Let me know how readily they take that idea.
  - grlthng 5y ago
    > If nations no longer control their money, does it mean they can go bankrupt? Yes, happens all the time where countries default on their debt obligations even when they "control" their money. > Would have the EU and the US been able to create stimulus packages? Yes its called taxation, and maintaining a reserve. Just like how normal people save up for a rainy day. They can even borrow money (bonds) from the public like they've done for hundreds of years. > What about adjusting the inflation to the economic growth rate of a country? The vast majority of failed monetary systems in the last hundred years is due to central banks printing too much money. So maybe we should stop letting the central banks attempt to control something they barely understand?

xiphias2 5y ago

The only thing that changes is that governments have to raise the taxes from people explicitly instead of a hidden inflation tax. I think it’s great for goverments as well, as it gives them more responsibility over how they are spending money. Norway of a great example of people paying high taxes because they see the government as responsibly spending and reinvesting its tax revenue. I never asked money from other people in my life, I was spending only what I earned, and I feel this way of living is a more honest and sustainable way of living.

it_citizen 5y ago
How do you keep inflation within an economic zone between 2 and 3 percent without control over your money? No matter if the economic growth is between -1% and 10%?
- xiphias2 5y ago
  Bitcoin has a built in inflation schedule. If you believe that over long term price inflation of scarce assets (like New York real estate) will follow the inflation of the emission of the currency (which I believe), Bitcoin will make sure it will stay under 1% in the future. Right now Bitcoin is in the adoption phase, that’s why people are seeing the crazy price moves, but I expect it to normalize in the future (maybe 10 years from now).
  - it_citizen 5y ago
    I am not talking about scarce assets but of the entire economy of a country. Concretely, how would bitcoin would manage to keep inflation in a healthy range (1.5%-3%) given that we can no longer decide to emit or remove money from the system as the situation evolves? If the world goes into recession vs know an economical boom, you don't want to emit the same amount of money into the system. Also, if two economic zones have very different growth rates, how does that work with a global currency like bitcoin?
    - xiphias2 5y ago
      Can you tell me a period of time from history when governments were removing money from the system (spending less than they were raising taxes and paying back their bonds without creating more debt)? It never happens. What governments are doing is unsustainable, people are not happy with the trillions of dollars they are printing and buying up scarce assets (which are the most imporant things for people…good luck living in an email inbox for free).
    - landemva 5y ago
      If by inflation you mean the rise in general prices, or the destruction of the purchasing power of the monetary unit, then the track record is that btc will continue to be deflationary in that your purchasing power will be increased. If you don't like increased purchasing power, there are alternatives such as holding most any government issued monetary unit.

zionic 5y ago

> Wouldn’t we be giving up an essential lever to adjust to changing economical conditions? Who’s we? You, I, and most people have zero ability to move those levers. The question is should they have access to those levers and I firmly believe the answer is no. I’d rather have a world with sound money and no one in control than the people who have dominated the west for the last 100+ years.

it_citizen 5y ago
We as “citizen of a nation”? If nations no longer control their money, does it mean they can go bankrupt? They can no longer adjust their money to influence their commercial balance? Would have the EU and the US been able to create stimulus packages? What about adjusting the inflation to the economic growth rate of a country? (Genuinely asking)
- landemva 5y ago
  We could replace the contract company 'Federal Reserve' (not gov't agency and no gov't employees) with a growth rate formula. Let me know how readily they take that idea.
- grlthng 5y ago
  > If nations no longer control their money, does it mean they can go bankrupt? Yes, happens all the time where countries default on their debt obligations even when they "control" their money. > Would have the EU and the US been able to create stimulus packages? Yes its called taxation, and maintaining a reserve. Just like how normal people save up for a rainy day. They can even borrow money (bonds) from the public like they've done for hundreds of years. > What about adjusting the inflation to the economic growth rate of a country? The vast majority of failed monetary systems in the last hundred years is due to central banks printing too much money. So maybe we should stop letting the central banks attempt to control something they barely understand?