Ladies and Gentlefolk, please do not forget the reason we are gathered here today: https://www.youtube.com/watch?v=9-uo-KfnkhI
"I think it has done only harm, and that is why I am now pleading for what I call, the denationalization of money" -F.A. Hayek
For those of you who need a refresher on how our current system works: https://www.youtube.com/watch?v=PHe0bXAIuk0
We need educated Bitcoiners out there who can confidently speak on the matters of economics and Bitcoin functionality. Let this post serve as one of many stops on that journey to competency.
Admittedly, Austrian economics / deflationary money / etc falls very outside my area of expertise, and most people with any opinions of economics get pretty vitriolic when you suggest anything outside the Keynesian model. Any and all resources in that field are welcome.
Had someone tell me today that all countries that attempted to use the gold standard were forced to abandon it because deflationary money hurts the economy. Do you have any thoughts about that?
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Yeah I do lmao I have a lot of thoughts on that. The gold standard or sound money in general is not sustainable in a system of debt creation where people want to drink the alcohol of debt creation, but no one wants to go through the hang over of returning back to base money supply (aka paying off the debt).
I usually concede when arguing about the definition of inflation. Whether inflation is base money expansion, or an increase in prices is just not a useful argument. What is useful, is that debt creation has an inflationary effect whether that debt creation is by that person's opinion actual inflation or not, and paying off the debt will have a deflationary effect.
I also believe that debt results in malinvestment. I believe investments should be made by investors, people who can afford to lose money on a failed business, not bank account holders who can not afford to lose the total amount of money in their accounts.
Although my cries to abandon debt do seem to be very unpopular, I do believe its the right way forward. As people use cheap money to purchase hard money (debt and government subsidies to buy houses or paychecks to buy Bitcoin for example) the system as it stands will reveal itself to be contorted and sick and ultimately collapse (naturally without any need for an uprising, though it is possible that the symptoms it would cause could initiate an uprising the seeds of which we've seen with the 99% protestors)
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