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Equating shitcoin pumping to central banking is hilariously absurd. While I do agree that central banking has gone too far, central bankers--at least in develo

by fny 4y ago

Equating shitcoin pumping to central banking is hilariously absurd. While I do agree that central banking has gone too far, central bankers--at least in developed countries--are not on some blatant mission to rob people of money for their own enrichment. Sure corruption might happen on the fringes, but it's not the primary intent. Pump and dumps are pump and dumps. The primary mission is to fuck others over.

hgazx 4y ago
> central bankers--at least in developed countries--are not on some blatant mission to rob people of money for their own enrichment Have you looked at the current world?
- johnnymorgan 4y ago
  This guy understands PPP and how central bankers have absolutely being robbing people. You're alright, we should hang out :) Cheers
throwawaymaths 4y ago
It is absurd! At least victims of shitcoin pumping are putting their money into the fraud willingly! > are not on some blatant mission to rob people of money for their own enrichment. Yes, they are. The point of inflation in contemporary mainstream economic theory is to lower the nominal price of labor and increase employment. So if "making themselves look like they are doing something" counts as "their own enrichment" then yes, central bankers are robbing people of their past value of their labour, especially low income labourers, to make themselves look like they are doing the country a solid. CS Lewis quote comes to mind: "Of all tyrannies, a tyranny sincerely exercised for the good of its victims may be the most oppressive. It would be better to live under robber barons than under omnipotent moral busybodies. The robber baron's cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end for they do so with the approval of their own conscience"
- fny 4y ago
  > inflation in contemporary mainstream economic theory is to lower the nominal price of labor Erm. Wut? Pray tell which economic theory espouses this? The point of inflation (1-2%) is to prevent deflationary spirals. Presuming there is some maximum productive capacity, wages will necessarily go up with inflationary currencies ideally in line or exceeding inflation. Bank interest rates also ideally match the inflation rate. The only reason nominal wages have remained suppressed in developed nations has been outsourcing. This is not a function of the central bank.
  - throwawaymaths 4y ago
    > which economic theory https://archive.nytimes.com/krugman.blogs.nytimes.com/2010/02/13/the-case-for-higher-inflation/ https://archive.nytimes.com/krugman.blogs.nytimes.com/2010/0... "even in the long run, it’s really, really hard to cut nominal wages. Yet when you have very low inflation, getting relative wages right would require that a significant number of workers take wage cuts. So having a somewhat higher inflation rate would lead to lower unemployment, not just temporarily, but on a sustained basis" Paul Krugman is about as mainstream an economist as you can get > wages will necessarily go up with inflationary What exactly is the mechanism for this? I'm reminded of this video: https://youtu.be/QsAnssN1cxM https://youtu.be/QsAnssN1cxM THIS IS WHAT ECONOMISTS ACTUALLY BELIEVE
    - PavleMiha 4y ago
      Sorry, I'm definitely not very familiar with macro-economics, but is your opinion that any amount of inflation is bad?
      - throwawaymaths 4y ago
        If your goal is to stop stealing from the poor to give to the rich, then yes, any inflation is bad. That might not be your goal. Your goal might be to continue stealing from the poor to give to the rich, in which case inflation is good.
    - 4y ago
logicalmonster 4y ago
> central bankers--at least in developed countries--are not on some blatant mission to rob people of money for their own enrichment. What is inflation?
- 4512124672456 4y ago
  Inflation is not something central bankers use to rob people of money for their own enrichment.
  - logicalmonster 4y ago
    Do you concede that inflation robs people of purchasing power? That's the most important point from that. I can understand that the "for their own enrichment" part of that sentence is a bit debatable. It's true (as far as I know) that the central bankers are not personally building giant Scrooge McDuck money bins and siphoning cash directly from their monetary policy decisions in there for swimming purposes. However, you can point out that the money and power they gain is due to their willingness to keep business as usual (inflation) churning. And let's not forget that the central bankers can manage to get high 6 figures speaking engagement fees, at least after they're out. I can't be sure what level of quid pro quo goes on with all of that, but they certainly do manage to enrich themselves by playing their part and continuing the generally policy of inflation.
    - fny 4y ago
      > Do you concede that inflation robs people of purchasing power? That's the most important point from that. It's not supposed to. The policy rate is supposed to match the inflation rate on average. When the fed says 2% inflation target it also implies that the fed funds rate should be at 2%. Most of the runaway inflation you're seeing today is because the *government* spent way, way too much money which put a massive strain on limited resources. Blame the CARES Act + American Rescue Plan. You want to see corruption and pork spending? Look at the $3 trillion in deficit spending across the Trump and Biden administrations.
    - ChrisLomont 4y ago

by fny 4y ago

hgazx 4y ago

> central bankers--at least in developed countries--are not on some blatant mission to rob people of money for their own enrichment Have you looked at the current world?

johnnymorgan 4y ago
This guy understands PPP and how central bankers have absolutely being robbing people. You're alright, we should hang out :) Cheers

throwawaymaths 4y ago

It is absurd! At least victims of shitcoin pumping are putting their money into the fraud willingly! > are not on some blatant mission to rob people of money for their own enrichment. Yes, they are. The point of inflation in contemporary mainstream economic theory is to lower the nominal price of labor and increase employment. So if "making themselves look like they are doing something" counts as "their own enrichment" then yes, central bankers are robbing people of their past value of their labour, especially low income labourers, to make themselves look like they are doing the country a solid. CS Lewis quote comes to mind: "Of all tyrannies, a tyranny sincerely exercised for the good of its victims may be the most oppressive. It would be better to live under robber barons than under omnipotent moral busybodies. The robber baron's cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end for they do so with the approval of their own conscience"

fny 4y ago
> inflation in contemporary mainstream economic theory is to lower the nominal price of labor Erm. Wut? Pray tell which economic theory espouses this? The point of inflation (1-2%) is to prevent deflationary spirals. Presuming there is some maximum productive capacity, wages will necessarily go up with inflationary currencies ideally in line or exceeding inflation. Bank interest rates also ideally match the inflation rate. The only reason nominal wages have remained suppressed in developed nations has been outsourcing. This is not a function of the central bank.
- throwawaymaths 4y ago
  > which economic theory https://archive.nytimes.com/krugman.blogs.nytimes.com/2010/02/13/the-case-for-higher-inflation/ https://archive.nytimes.com/krugman.blogs.nytimes.com/2010/0... "even in the long run, it’s really, really hard to cut nominal wages. Yet when you have very low inflation, getting relative wages right would require that a significant number of workers take wage cuts. So having a somewhat higher inflation rate would lead to lower unemployment, not just temporarily, but on a sustained basis" Paul Krugman is about as mainstream an economist as you can get > wages will necessarily go up with inflationary What exactly is the mechanism for this? I'm reminded of this video: https://youtu.be/QsAnssN1cxM https://youtu.be/QsAnssN1cxM THIS IS WHAT ECONOMISTS ACTUALLY BELIEVE
  - PavleMiha 4y ago
    Sorry, I'm definitely not very familiar with macro-economics, but is your opinion that any amount of inflation is bad?
    - throwawaymaths 4y ago
      If your goal is to stop stealing from the poor to give to the rich, then yes, any inflation is bad. That might not be your goal. Your goal might be to continue stealing from the poor to give to the rich, in which case inflation is good.
  - 4y ago

logicalmonster 4y ago

> central bankers--at least in developed countries--are not on some blatant mission to rob people of money for their own enrichment. What is inflation?

4512124672456 4y ago
Inflation is not something central bankers use to rob people of money for their own enrichment.
- logicalmonster 4y ago
  Do you concede that inflation robs people of purchasing power? That's the most important point from that. I can understand that the "for their own enrichment" part of that sentence is a bit debatable. It's true (as far as I know) that the central bankers are not personally building giant Scrooge McDuck money bins and siphoning cash directly from their monetary policy decisions in there for swimming purposes. However, you can point out that the money and power they gain is due to their willingness to keep business as usual (inflation) churning. And let's not forget that the central bankers can manage to get high 6 figures speaking engagement fees, at least after they're out. I can't be sure what level of quid pro quo goes on with all of that, but they certainly do manage to enrich themselves by playing their part and continuing the generally policy of inflation.
  - fny 4y ago
    > Do you concede that inflation robs people of purchasing power? That's the most important point from that. It's not supposed to. The policy rate is supposed to match the inflation rate on average. When the fed says 2% inflation target it also implies that the fed funds rate should be at 2%. Most of the runaway inflation you're seeing today is because the *government* spent way, way too much money which put a massive strain on limited resources. Blame the CARES Act + American Rescue Plan. You want to see corruption and pork spending? Look at the $3 trillion in deficit spending across the Trump and Biden administrations.
  - ChrisLomont 4y ago