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No. No. No. This is not how it works. Inflation is ONLY caused by fiat currency not backed by anything real; The federal government writing checks for objects/

No. No. No. This is not how it works. Inflation is ONLY caused by fiat currency not backed by anything real; The federal government writing checks for objects/services where the total amount expended exceeds the amount intaken via taxes. Literally any other explanation is incomplete.

westurner 3y ago
When the retail prices of essential commodities increase, sellers increase their own prices in order to afford higher direct and indirect costs like gas and groceries and rent. In commodity exchange licensed markets, shorts and other market pressures are expected to bring prices back down to equilibria or stabilities around such; but can or do retail consumer buying patterns bring retail prices back down?
- exabrial 3y ago
  > but can or do retail consumer buying patterns bring retail prices back down? No, they do not and cannot, because these are just all secondary effects, not causes. Imagine if we were all using Bitcoin. Imagine if one person on the Bitcoin network was allowed to not have to expend provide proof of work to produce Bitcoins, but everyone else was. This person began spending extravagantly, creating Bitcoins whenever they wanted to, while everyone else was forced to do a proof of work. Everything downstream becomes a secondary effect, trying to deal with that person's spending. That is how Fiat currencies work without backing.
  - lesuorac 3y ago
    You do realize that people (miners) add new bitcoins into existence every 10 minutes? Sure there's currently a limit of "21 million bitcoins" but there's only 19 million right now and miners keep minting more so it's currently inflationary. I'm sure those miners won't collude and decide that at 21 million it'd sure be nice if they kept the ability to mint more.
    - exabrial 3y ago
      Yes, and they do so with proof of work. The whole point is one miner could add bitcoins WITHOUT proof of work.
    - westurner 3y ago
      All non-PQ (Post Quantum) chains will need to hard fork to support PQ. Account addresses (hashes of public keys) will be longer with PQ, so form validation logic will need to be updated to accommodate longer strings. Anyone can hardfork Bitcoin (or Litecoin) and thereby create a new asset. They don't have to recognize the existing Bitcoin blockchain like e.g. _ Cash and _ Diamond. (Bitcoin did not proactively or responsively protect its trademark.) For there to be more than 21 million Bitcoin, they would need to hardfork. Bitcoin is both inflationary and deflationary; while block rewards equitably distribute Bitcoin to miners and thereby increase the [Bitcoin] MSB (Monetary Supply Base), the amount of "burnt" and "lost to the depths" Bitcoin also continues to increase. (Presumably in part due to our shared general incapacity to manage sk/pk keypairs without losing them, even when there's money on it).
  - westurner 3y ago
    The Bretton-Woods agreement was not unique to the US. Populist farmers had wanted USD to be backed with Silver, too (because they had silver on their farms). "Follow the Yellowbrick Road" in the Wizard of Oz is contextually about bimetallism and William Jennings Bryan, the Cowardly Lion. So, if USD was suddenly also backed by silver (or lab-grown diamonds), how would that change the relative purchasing power of a dollar? Instead it is said that we have a petrodollar (or a "narco-oil") state with large standing army to force international trade to use the most stable currency of trade; and how sensitive to the price of commodities like oil is our economic stability? There were fewer economic calamities in frequency and severity while we were on the gold standard (when we had gold reserve-backed fiat currency), but less growth. Anyways, which economic effects are secondary when most of economics is nonlinear in that a change in quantity X results in a change in Y results in e.g. "back pressure" on X? Which are particles and which are quasiparticles from which emergent dynamics can emerge; which are secondary effects? Also, describe international turmoil / [false] information, and commodity prices. Conflict/Unrest => Price Action => Price Action in other markets => Unsustainable increases in CPI and reductions in PPP

westurner 3y ago

When the retail prices of essential commodities increase, sellers increase their own prices in order to afford higher direct and indirect costs like gas and groceries and rent. In commodity exchange licensed markets, shorts and other market pressures are expected to bring prices back down to equilibria or stabilities around such; but can or do retail consumer buying patterns bring retail prices back down?

exabrial 3y ago
> but can or do retail consumer buying patterns bring retail prices back down? No, they do not and cannot, because these are just all secondary effects, not causes. Imagine if we were all using Bitcoin. Imagine if one person on the Bitcoin network was allowed to not have to expend provide proof of work to produce Bitcoins, but everyone else was. This person began spending extravagantly, creating Bitcoins whenever they wanted to, while everyone else was forced to do a proof of work. Everything downstream becomes a secondary effect, trying to deal with that person's spending. That is how Fiat currencies work without backing.
- lesuorac 3y ago
  You do realize that people (miners) add new bitcoins into existence every 10 minutes? Sure there's currently a limit of "21 million bitcoins" but there's only 19 million right now and miners keep minting more so it's currently inflationary. I'm sure those miners won't collude and decide that at 21 million it'd sure be nice if they kept the ability to mint more.
  - exabrial 3y ago
    Yes, and they do so with proof of work. The whole point is one miner could add bitcoins WITHOUT proof of work.
  - westurner 3y ago
    All non-PQ (Post Quantum) chains will need to hard fork to support PQ. Account addresses (hashes of public keys) will be longer with PQ, so form validation logic will need to be updated to accommodate longer strings. Anyone can hardfork Bitcoin (or Litecoin) and thereby create a new asset. They don't have to recognize the existing Bitcoin blockchain like e.g. _ Cash and _ Diamond. (Bitcoin did not proactively or responsively protect its trademark.) For there to be more than 21 million Bitcoin, they would need to hardfork. Bitcoin is both inflationary and deflationary; while block rewards equitably distribute Bitcoin to miners and thereby increase the [Bitcoin] MSB (Monetary Supply Base), the amount of "burnt" and "lost to the depths" Bitcoin also continues to increase. (Presumably in part due to our shared general incapacity to manage sk/pk keypairs without losing them, even when there's money on it).
- westurner 3y ago
  The Bretton-Woods agreement was not unique to the US. Populist farmers had wanted USD to be backed with Silver, too (because they had silver on their farms). "Follow the Yellowbrick Road" in the Wizard of Oz is contextually about bimetallism and William Jennings Bryan, the Cowardly Lion. So, if USD was suddenly also backed by silver (or lab-grown diamonds), how would that change the relative purchasing power of a dollar? Instead it is said that we have a petrodollar (or a "narco-oil") state with large standing army to force international trade to use the most stable currency of trade; and how sensitive to the price of commodities like oil is our economic stability? There were fewer economic calamities in frequency and severity while we were on the gold standard (when we had gold reserve-backed fiat currency), but less growth. Anyways, which economic effects are secondary when most of economics is nonlinear in that a change in quantity X results in a change in Y results in e.g. "back pressure" on X? Which are particles and which are quasiparticles from which emergent dynamics can emerge; which are secondary effects? Also, describe international turmoil / [false] information, and commodity prices. Conflict/Unrest => Price Action => Price Action in other markets => Unsustainable increases in CPI and reductions in PPP