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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (103705)	11/16/2013 7:48:33 PM
From: elmatador	Respond to of 217815

Sargent: "Inflation is a major redistribution machine, which reduces the real debt burden for the benefit of debtors and devalued the assets of the creditors."

To: TobagoJack who wrote (103705)	11/17/2013 1:23:40 PM
From: carranza2	1 Recommendation Recommended By Tommaso Read Replies (3) \| Respond to of 217815

If you have cash, deflation's great. But what happens is that prices and therefore profits fall, which means wages and unemployment rise, which leads to reduced demand, etc., until, well, you know rest of drill. We saw it in the '20s and '30s. Yes, in the short run, deflation is a boon, but it is short lived. Krugman and Summers now officially on board for proposition that bubbles are good and necessary, not a mis-allocation of capital. I suppose they're right, the Great Recession brought on by the bursting of housing was a good and great thing. Time for another systemic crisis and exponential increase in debt caused by another bursting bubble. Yes, indeed, bring it on. I cannot for the life of me understand why any thinking human being listens to such male bovine manure.

To: TobagoJack who wrote (103705)	11/17/2013 10:17:21 PM
From: Maurice Winn	Respond to of 217815

The reason for dilution, aka inflation, is because the people pixelating the new money are the people who get to spend it and thereby are charging a royalty rate of about 5% [depending on how you measure their dilution/inflation process]. People with intellectual property, which is what fiduciary money is, are reasonably able to charge a royalty rate to the users of their intellectual property. If they charge too much royalty, people will use something else as money. Some people think that gold is a good money. But gold is made out of oil, aka energy, so shifting to gold incurs a royalty rate too. Dilution continues, but with the expenditure of a huge amount of energy. Bitcoin is similar. Mining bitcoins and maintaining the transaction process requires big heaps of processing power. The energy required to produce that processing is now so large that bitcoins are made of energy too. Mqurice