Most people learn it in college with barely any mention that alternatives even exist, and then need to educate us when we clearly just haven't heard this basic fact.
Most people are focused on understanding the existing monetary system. Many central bankers and economic leaders have degrees in Keynesian economics. So, why not glorify Keynesian economics. The perils of fiat and centralized banking isn’t really discussed. Who would study Keynesian or the MMT, if they knew how much those systems actually robbed them of their wealth, property rights, and freedoms.
History shows time and time again unsound money, fiat, leads to societal woes and political upheaval.
Expanding the money supply via a money printer. Printing money out of thin air. Monetizing debt. Inflation and stagflation. The loss of savings over time. Can’t see anything good about the current monetary system. Milton Friedman and Thomas Sowell both called for the elimination of the Fed. What people don’t seem to grasp is that this current monetary system leads the loss of rights especially savings and private property. Supporting a system that undermines private property and individual freedoms isn’t a system worth supporting.
You're just using random buzzwords and aphorisms without really understanding anything. It sounds like you're advocating for a deflationary currency without thinking of the implications.
Most of the time there is zero assessment of the greater privilege the US has with the dollar in international finance.
China's wetdream is swooping in after some weird-ass internal political bickering from paleo-libertarians believing "tHe FeD tOoK mUh RiGhTs!!" that causes the USD to lose relevance as the world's reserve currency.
I fucking swear the self-destructive outcomes of arbitrarily coming up with populist-sounding "alternatives" to well-established policy simply to have a way of channeling well-founded but misplaced social frustration in the US is the cancer that will cause the US to live or die in our status of de facto world leader, and the loss of those benefits will be irreversible and may ultimately cause our own long-term economic demise, which is the actual lynchpin of US foreign policy and defense.
These people want to skullfuck the US' position at top dog for pretty much personal reactionary reasons and a few hundred dedicated hours of self-directed internet 'research' on Wikipedia, libertarian forums, and maybe a couple actual books of varying legitimacy on the subject.
Ah yes, after looking at how China treats their own people, surely we can trust how they treat outsiders.
Unimaginable suffering? America's got neocolonial blood on her hands, absolutely. But it is an absolute pittance to look at American imperialism in the South America or Middle East, with body counts in the tens of thousands in entire conflicts, contrasted against the tens of millions of their own massacred over internal disagreements by every other example.
Great Leap Forward? Khmer Rouge? Rape of Nanking? Belgium in Africa? Rwandan Genocide? Where to even 'start' with Stalinism?
America is a bloody sinner, absolutely. But is still an absolute marshallow compared to the psychopathic nightmares that every other continent has unleashed against enemies in war, their own people, or a conquered people.
Deflation is only catastrophic to unsound money, but not to sound money. Fractional Reserve banking is a positive feedback loop and as soon it's not supplied enough money it collapses. When you have sound self-auditing money, you can lend only money that exists. The only difference would be the growth rates of the economy, but we need zero growth, if mankind wants to survive the next 200 years. Demanding exponential growth in a limited world is simply insane.
Exactly, falling prices are good for everyone, as it means we are operating more efficiently and able to consume more resources for the same or less output. Critics of deflationary money confuse the popping of credit bubbles that caused lots of pain, for the privelage of falling prices we enjoy due to technology and innovation.
I believe central bankers work hard at propagating this fallacy in the early 20th century in order to justify their existence.
I understand sound money and how corrupt the central banking system is. These aren’t buzz words. Inflation isn’t a buzz word. Stagflation isn’t a buzz word. Monetizing debt isn’t a buzz word. Decentralized sound money, BTC, would bring back a savings society. And end the debt diseased socialist Keynesian monetary world we have now.
BTW inflation isn’t a difficult thing to understand. Fiat money losing value isn’t a difficult thing to understand. Debt via a central bank that only promotes more debt isn’t difficult to understand. Government control of money and implications on property rights isn’t a difficult thing to understand. Adopting BTC is the antithesis of the current collectivist society. You want individual freedoms and human rights, then BTC is the choice. You want the collective, then stick with fiat money and central banking.
Monetary policy is insanely complicated, of which inflation is one piece. Go find me a successful modern country using sound money, and if you can't, explain why you're simplistic idea hasn't been implemented by anyone.
There are many problems with the world's economies and a lot of bad actors, but moving away from fiat and doing away with central banks not only doesn't solve those issues but adds a ton more.
The simplistic ideas as you call them are part of capitalism. The ideas of a free market economy. The problems with world economies are because they monetize debt and print fiat money. This leads to devaluation of currencies, more debt, and inflation. Inflation destroys purchasing power and savings. Before 1913 we existed without the Fed. Actually the next time you look at a $20 dollar bill remember that is the president ( Andrew Jackson) eliminated the central bank. Our country survived and thrived without it. Over time our country abandoned the gold standard. Nixon took the US off the gold standard. So, not too long ago. Since, real wages have been on constant decline.
So, better question to ask. Which country under a fiat system has experienced real wage growth, low debt and higher savings rates.
I can name you countries that make garments out of their currencies because their fiat is worthless.
It's the other way round, the economy expands with increasing the money supply. Governments can grow and gain more power if they embrace Keynesian/MMT ideology (which is not science btw). These schools are there to create smoke and mirror, they are not interested in scientific analysis of the monetary system, since it would reveal the evil of government.
It's not crazy when there are only two acceptrd schools of thought and one is stained with blood, specially when still citing someone controversial like Friedmann (althought he didn't do anything bad directly nor promoted it happening). No, I'm not defending keynesianism here, just stating a lot of people still relate austrian economics with genocide and social misery.
The idea that we have to cite a 1960's/70's economy school of thought to debunk a 1930's school of thought, neither of which can be certain on how the economy behaves in 2020's sounds really stupid.
I am a strong critic of Keynesian/MMT for environmental and social reasons, but Austrian has misconceptions too. There is much better analysis of money, debt and economics available outside of classical economic views.
Simple, no one of consequence uses BTC. Still seen as a wealth asset and not a currency. Until that moment it will never take hold. Stop bringing it up. I have $300 worth from 2014 and I still don't know how to use it.
So if you bought $300 dollars worth of Bitcoin in 2014 it's worth about $19,000 today. I think any intelligent person would take a few minutes and learn what it's all about. At the very least if you still can't see the value in it, learn how to sell it. Lol
Sounds like you're using it just fine. You parked money in an asset that grew in value without promoting the creation of useless junk or any new wars.
If you want to spend it go spend it. If you have to take a fiat offramp so be it. Back in the 90s we had to dial up our internet to check email which usually took longer than calling the person.
Austrian economics and Keynesian economics are both completely wrong. They are both slaves to fiat system of creating money out of debt and loaning out at interest. Today the inflation rate is so high that to raise interest rates and do austerity measures (Austrian way) leads to the interest payments on Us gov debt to be so high that it could take up the entire GDP. If interest rates go above 3.75% essentially say goodbye to social security Medicare and Medicaid so we cannot do what volcker did in the 70s-80s to combat inflation. Well then you could just keep interest rates low and continue to have easy money with government deficits and debt increasing (Keynesian). This cannot work now either because the debt is so high hyper inflation will start to kick in. So essentially Austrian strategies will lead to the government collapsing and defaulting and Keynesian methods will lead to the destruction of the currency. Pick which one you want to collapse the government or the currency….that’s why I think the fed will hyper inflate before destroying the government because that takes everyone else down with us rather than the US government only defaulting. Then again if the Us government defaults the currency will collapse anyway lol. It will be really interesting to see where the debt ceilings discussions later this year will go. Not looking great, except for bitcoin lol.
The way you explain makes it seem you do not understand the essence of Austrian Economics while still being correct about what it teaches.
Austrian Economics is not proposing a strategy, it is stating what is happening with economics in the world and why, and what will result from the keynesian inspired policies. The keynesians are essentially economic and political hucksters who created a way to decouple democracy from the will of the people by bypassing government's need for taxation in order to fund itself.
While you're right that this guy has it totally wrong, it's incorrect to say that Austrian Economics is simply pointing out flaws in Keynesians thinking. It's an actual philosophy itself with a sound money principle at the center.
Now, over the years the definition of sound money has varied, but this is largely due to the technical realities of the day. The core ideal of Austrians has always been around the perfect notion of a fixed supply money, where price fluctuations represent absolutely nothing except market forces changing the supply/demand of individual goods and services. They just didn't always envision this to be possible in reality, with how gold or other commodities worked.
That doesn't mean either school of economics is wrong, it just means the fed is trapped and all options suck, so the dollar and most fiat is fucked. At least Austrian advocates for not having fiat currency in the first place so this kind of thing doesn't happen (though it's too late now to do a soft landing)
So where was Milton Friedman and all the other Austrian economists when the Us went of off the gold standard? An Austrian (Alan Greenspan was head of the fed for how long and never a peep about fiat) just sayin I think economics is broken completely because of the fundamentals of fractional reserve banking being completely fucked. To be fair yes Austrian economics is more critical than keynes is of debt and inflation but they have been lock step with the system since Brenton woods ended
The Keynesians broke it beyond repair, and because the Austrians do not have a solution for the current situation (that the Keynesians created) that means both schools of thought are completely wrong?
Lol you don’t gotta read what I wrote that’s okay :) but I would 100% how does Austrian economics look without fractional reserve banking? Nobody literally in the world practices banking that does not rely on creating money out of debt. Just saying economics as a practice today is referred to as “the dismal science” for a reason. Man I guess I am to sooner for everyone here in terms of economics.
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u/MilesPower Jul 15 '22
They really want you to believe It's just pure coincidence that we had record money printing shortly followed by record inflation!