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0 sats \ 10 replies \ @Solomonsatoshi 25 Sep \ parent \ on: Our Economy Has Never Needed an "Elastic" Currency econ
I would disagree with that...with provisos.
Individuals/private investors are primarily self seeking for their own gain.
A government with sufficient honesty and discipline can invest or direct captial to be invested in infrastructure and productive assets (including citizens skills and R&D) with a broader more strategic and longer term vision.
This is what the CCP in China has done in multiple areas.
Fpr example they use fiat capital issuance to build massive power generation projects such as the The Gorges on the Yangtze river or coal or gas or nuclear power plants- this new power generation is supplied and available to any private enterprise who can use it and in the past was often used by Bitcoin miners. Anyway by supplying power to an regional economy it stimulates productive potential and multiple subsidiary economic development and investment. This has been a major prong to economic development in China in the last 4 decades and has delivered mostly good results. Only a government has the mandate and ability to push through these projects and if done well they unleash huge latent potential that might otherwise have remained dormant.
The west used to do this sort of economic stimulus but since neoliberal voodoo economics, or should I say since the bankers came to largely own western governments, this does not happen much.
Private enterprise works well in a competitive market but in many cases investment in and development of basic economic infrastructure and supply chains requires a broader more strategic viewpoint- which governments that are motivated can provide and fiat capital issuance can help fund such developments without being an undue burden upon the citizens whose currency has been debased, as over the medium- long term, such projects when done well can deliver a stronger more prosperous economy than a solely private capital funded one could.
Chinese are now building an ever bigger hydro project several magnitudes bigger than the three gorges, just above India and Bangladesh...
Another example is the power efficiency drive initiated and pushed by the CCP since the early 2000s- it was simply about acknowledging Chinas energy deficit (dependence on imported fossil fuels) and the logic of improving energy efficiency across the economy for producers and consumers- the result- China leads the world in production and use of Solar power, Wind Power, LED lighting, EVs, Lithium Batteries and high speed electrified bullet trains. All this increases the Chinese economies energy efficiency and has also delivered billions in receipts from exports.
You might argue private enterprise could do the same- but No private enterprise does not have the ability or motive to think and act in the best long term interests of the national economy- only a good honest government does.
You might argue private enterprise could do the same- but No private enterprise does not have the ability or motive to think and act in the best long term interests of the national economy- only a good honest government does.
Private enterprise can only make money if they provide something of value in exchange. The government gets paid regardless. Why would you expect the government to act more closely in alignment with the national interest? They have no incentive to care.
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Why would you expect the government to act more closely in alignment with the national interest?
Very good question!
The theory is that in democracies they need to show they are in order to get re elected- but then the elites figured out they could own both major parties in most democracies and here we are!
Ruled by parasitic shadow bankers.
Most citizens have become apathetic and antagonistic toward meaningful participation in democracy because the elites have rigged it.
Infrastructures and productive sectors emaciated by chronic debt slavery and lack of investment because most fiat debt issuance has been squandered on non productive speculative asset price pumping.
However at the same time more or less, rather ironically, the CCP emerged from the turmoil of Maos era where it was regaining its self determination after the hundred years of humiliation following the Opium Wars and so in the 1980s onward under Deng adapted its economic theory to allow more of the principles of free enterprise to operate in its favour, while retaining strong control over the strategic direction of development.
And while China is a one party state the CCP was and is well aware that if it does not deliver credible economic results to its a good majority of its citizens it will probably suffer the fate of brutal and bloody removal.
Heavens Mandate gives the CCP plenty of incentive, and so the pragmatic mercantile Chinese mixed economy is employing fiat capital issuance and allocation far superior to the crony capitalism of the decadent west.
China has thus won the trade war and dominates global markets in most manufactured goods and commodities.
The CCP still directs capital whereas in the west Capital (banks) now direct your government.
Get it yet?
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Well if citizens are holding the CCP at gunpoint to scare them into acting in the national interest, then it isn't too much different from America's system, except that the CCP has a lot more leeway in the scope and speed of decisions it can make. But in either case there's a transfer of power from individuals to a central government that I'm still not seeing the justification for.
If I go out and wash someone's car, and they pay me 20,000 satoshis, why do I get a letter from some rando on the other side of the country demanding I pay him 1,000 satoshis? Who cares what his cause is? Anyone can send me threats, but I did the work. No one else should be getting paid for work that I did, no matter what they plan to spend it on. If they have an investment idea, but I don't like it, they shouldn't be able to force me to join.
In other words, you can't justify rape by promising that it will be enjoyable in the long run. You're saying the investments are worth it, and in a 變態 kind of way I can visualize how the investment might be a net positive, but my point is that government actions aren't consensual.
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If I go out and wash someone's car, and they pay me 20,000 satoshis, why do I get a letter from some rando on the other side of the country demanding I pay him 1,000 satoshis?
Assuming you mean the random is the tax department the answer would be that taxes fund governments and governments determine the wealth of nations. If you wash someones car in a nation with a weak government and history of weak and corrupt government chances are you will receive less for washing someones car.
'Well if citizens are holding the CCP at gunpoint to scare them into acting in the national interest, then it isn't too much different from America's system'
The difference between the Chinese government and western 'liberal democracies' for example the US system, is that in western democracies an administration can fail to deliver for most citizens and simply gets voted out and onto their cushy retirement speaking tours and jobs with the corporate sponsors who owned them all along.
In China all the politburo know that their position wealth and privilege can last a long time- but only if they continue to provide good economic results- so they do...or die!
Western governments have allowed the private bankers, who own them, to MISUSE fiat debt leveraged capital issuance and allocation- squandering our collective liquid capital and undermining our past present and future.
As long as most westerners don't wake up to how this has happened things will not be likely to improve.
While Bitcoin does provide a small amount of relief by giving us an alternative SoV it has largely been captured and controlled by the sly bankers who have allowed it as a speculative KYCed and taxed commodity but largely blocked it as a MoE.
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In China all the politburo know that their position wealth and privilege can last a long time- but only if they continue to provide good economic results- so they do...or die!
There is no good result from stealing money. The fact that BTC outperforms the Yuan and USD is 天命.
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Its not stealing - its leveraging collective liquidity into a strategic development of your economies natural advantages resulting in economic growth and prosperity.
The wealth of nations is significantly derived from the competence and effectiveness of their governments.
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Its not stealing - its leveraging collective liquidity into a strategic development of your economies natural advantages resulting in economic growth and prosperity.
What a ridiculous way to say "gimme your money." You're selling your neighbor a story about this being for the greater good. Who's good? Who decides who's good? Who's who to say who's good is greatest? Why can't we just leave everyone's money alone? Why does there always have to be a hustler somewhere?
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Go live somewhere there is no government, no taxation, no law and order or property rights except might is right and the law of the jungle, and report back on how you find it.
Good luck with that!
Of course we all know you won't ~ because your not suicidal or insane...are you?