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Your monetary theory is that nobody spends any of the money that is created as a result of increasing the money supply? OK Paul Krugman, I'll see myself out. B
by hndamien 4y ago
Your monetary theory is that nobody spends any of the money that is created as a result of increasing the money supply? OK Paul Krugman, I'll see myself out.
Bitcoin doesn't have the same problem. Monero doesn't have the same problem. The magic power of interest rates is to hide the theft of inflation by artificially increasing dollar demand from debt holders of the currency. With a hard currency, people tend to take less debt, and less risk with debt. Fortunately they also have less need to borrow because the currency appreciates in value.
- neilwilson 4y agoNow that would be a straw man wouldn't it. If you have any money in your wallet or your bank account at any point in time you are not spending the money that is created as a result of the dynamic ebb and flow of the quantity of money in the system. The sum total of those people not instantly spending money when they get it is a deficit. It's just the accounting counterparty of people waiting before they spend their money. But then we're back to the famous Dijkstra quote "… our intellectual powers are rather gathered to master static relations and that our powers to visualize processes evolving in time are relatively poorly developed. For that reason we should do (as wise programmers aware of our limitations) our utmost best to shorten the conceptual gap between the static program and the dynamic process, to make the correspondence between the program (spread out in text space) and the process (spread out in time) as trivial as possible" The riff on that would be called "sound money beliefs considered harmful"