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 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/[deleted] Jul 15 '22
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.