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I think I finally understand fraud/ponzi economy where gov prints $$ (DTP)
| emerald useless black woman voyeur | 04/09/20 |
| Splenetic Private Investor Hunting Ground | 04/09/20 |
| violent police squad | 04/09/20 |
| emerald useless black woman voyeur | 04/09/20 |
| emerald useless black woman voyeur | 04/09/20 |
| emerald useless black woman voyeur | 04/09/20 |
| Wine Kitchen Wagecucks | 04/09/20 |
| emerald useless black woman voyeur | 04/09/20 |
| emerald useless black woman voyeur | 04/09/20 |
| emerald useless black woman voyeur | 04/09/20 |
| bat shit crazy scarlet electric furnace | 04/09/20 |
| emerald useless black woman voyeur | 04/09/20 |
| bat shit crazy scarlet electric furnace | 04/10/20 |
| Mustard mind-boggling ladyboy | 04/09/20 |
| irradiated peach hospital kitty cat | 04/09/20 |
| emerald useless black woman voyeur | 04/09/20 |
| bat shit crazy scarlet electric furnace | 04/09/20 |
| emerald useless black woman voyeur | 04/09/20 |
| Spruce Heaven Son Of Senegal | 04/09/20 |
Poast new message in this thread
Date: April 9th, 2020 3:42 PM Author: emerald useless black woman voyeur i've been meditating on this for a few weeks now in between bursts of chaotic rage and losing all my money (http://www.autoadmit.com/thread.php?thread_id=4503574&forum_id=2#39977553) |
Date: April 9th, 2020 3:43 PM Author: Splenetic Private Investor Hunting Ground (http://www.autoadmit.com/thread.php?thread_id=4503574&forum_id=2#39977557) |
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Date: April 9th, 2020 3:43 PM Author: violent police squad Explain for us (http://www.autoadmit.com/thread.php?thread_id=4503574&forum_id=2#39977561) |
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Date: April 9th, 2020 4:11 PM Author: emerald useless black woman voyeur Subject: part 1 wealth/value comes from human behavior (work/invention/resource extraction). money is simply a mechanism to incentivize the proper behavior. if we imagine a society identical to the one we have now - where farmers grew food, factory workers made cars, accountants did their office work, entrepreneurs built businesses, children went to school and studied the same majors - theoretically there would be no problem with this and no wealth/value was lost. however, without money, there can never be such a society, because money is the mechanism that pushes forward all of these desirable behaviors. money is completely unnecessary to the fundamental creation of value, but it's essential as the carrot/stick, the measuring scale, the reputational system that keeps humans in line and creates an orderly society for value to be made. (http://www.autoadmit.com/thread.php?thread_id=4503574&forum_id=2#39977742) |
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Date: April 9th, 2020 4:16 PM Author: emerald useless black woman voyeur Subject: part 2 usually when there's an economic crash, there was nothing that changed about the fundamentals of human behavior. in other words, there is nothing really going on in terms of fundamental value. nevertheless, the numbers go down, people are out of work, there is widespread suffering and social calamity. why? it's because of an artificial crisis of money: people are suddenly short of it, they need to pay back loans right away, this sets off a cascading reaction of people hoarding money and ceasing lending and hence the behavioral mechanism of society has short-circuited and broken. it's a social hysteria, in the true sense, because the gloom and doom of the worst depression could be entirely rectified if the very next day people woke up and decided to get back to work, and spend, and build, and act as if they weren't in one. but nobody can get this coordination started because the unwinding of the artifically created system of money, which their behaviors rely upon, is slow and unwieldy and inefficient in these special times of crisis. (http://www.autoadmit.com/thread.php?thread_id=4503574&forum_id=2#39977763) |
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Date: April 9th, 2020 4:29 PM Author: emerald useless black woman voyeur Subject: part 3 the fed has recently realized this, realized that zero value is reflected in the creation or destruction of money, since money is just a medium of behavior incentivization. in an economic crisis, when money itself has become the problem, and the proper behaviors are not being incentivized, the true problem is that people are not working and therefore real value is being destroyed. the ultimate goal of a central bank is not to ensure the money supply remains stable or takes on any particular form, but that it takes on the form needed to keep the economy running. when there is a short-circuiting of the money system creating an artificial shortage, the simple solution is to print more money, inject liquidity so that people go back to behaving as they ought to. (http://www.autoadmit.com/thread.php?thread_id=4503574&forum_id=2#39977837) |
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Date: April 9th, 2020 4:34 PM Author: Wine Kitchen Wagecucks But this discourages the behavior of conserving money and it obscures prices, both of which are essential to value. Evolution requires destruction. (http://www.autoadmit.com/thread.php?thread_id=4503574&forum_id=2#39977877) |
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Date: April 9th, 2020 5:02 PM Author: emerald useless black woman voyeur there is no inherent virtue in saving, or in spending. people should be saving just enough, and spending just enough, so that the collective productive behavior of society goes up. it's the behaviors that the money system induces that matters, not the arbitrary accounting/inflating/deflating of that system. (http://www.autoadmit.com/thread.php?thread_id=4503574&forum_id=2#39978088) |
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Date: April 9th, 2020 4:48 PM Author: emerald useless black woman voyeur Subject: part 4 ordinarily the market determines where money should go of its own accord. but when the market needs to be intervened upon, the fed must decide. the fed wants to act sufficiently to avert the money shortage, but it wants to act minimally so as not to distort societal-wide human behavior, which again, we fundamentally want the market to be the arbiter of. among the slew of options avilable (dividing up the stimulus package and writing ordinary citizens a check, to buying up distressed debt, to bailing out large corporations), the fed has decided that buying up distressed debt and bailing out large corporations would distort societal incentives least. whereas handing out checks to ordinary citizens would be wildly popular, this would distort societal structure the most. when buying up distressed debt which might never get repaid - you at least know the borrowers had an honest intention of doing something "productive" with it. or bailing out a dysfunctional corporation - you at least know there are instiutional structures to ensure the proper spending of it. there is going to be some negative distortions of human behavior, but it will be slight. on the other hand, giving ordinary citizens carte blanche to spend $20 trillion would lead to buckwild value destruction. hence why big banks will always get Bailout$ while incel neets will never see YangBux. (http://www.autoadmit.com/thread.php?thread_id=4503574&forum_id=2#39977984) |
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Date: April 9th, 2020 5:15 PM Author: emerald useless black woman voyeur Subject: part 5 (final) all of the above is pretty non-controversial, but what about inflation? the common wisdom is that there is no free lunch: increasing the money supply necessarily comes at the long-run cost of inflation, which degrades the currency and steals wealth from those who save. but this assumes that wealth is fixed. the reality is that the money supply is being increased for the sole purpose of averting wealth destruction. a smoother, more productive, less disaster-prone economy is one that will lead to more wealth being created relative to the additional money that was printed, so if done correctly, there does not need to be inflation at all. it's not win-lose. it's win-win. everybody benefits and it's the correct thing to do. (http://www.autoadmit.com/thread.php?thread_id=4503574&forum_id=2#39978196) |
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Date: April 9th, 2020 8:28 PM Author: bat shit crazy scarlet electric furnace i think this part is really bad. wealth == buying power and accumulation of wealth will necessarily cause inflation starting with luxury goods/housing and eventually impacting all level of society. inflation will be very high in luxury goods but it will percolate down below to basic consumer goods to a certain extent
if wealth didn't lead to inflation why do u think luxury 5th avenue apartments that cost a million during 1980s cost 30M to 40M now? or price of cars, eggs etc. or artwork? |
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Date: April 9th, 2020 8:36 PM Author: emerald useless black woman voyeur let's take something concrete like eggs for example.
if the gov doesn't print money and there's a depression, fewer eggs will be produced and (i know there are other factors to consider but i'm simplifying here) the price of eggs will go up because now there are fewer eggs per dollar
let's say the gov does print $2 trillion to prevent a depression. now there is more money in circulation. but also vastly more eggs are produced, there are more than enough eggs for everyone, the price of eggs will go down as there are more eggs per dollar
i'm only talking about the effects of money-printing to avert economic crisis, obviously regular inflation has been occurring throughout history. |
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Date: April 10th, 2020 6:12 PM Author: bat shit crazy scarlet electric furnace "if the gov doesn't print money and there's a depression, fewer eggs will be produced and (i know there are other factors to consider but i'm simplifying here) the price of eggs will go up because now there are fewer eggs per dollar"
you have this backwards hoss. depression reduces demand and usually results in deflation. not inflation
"let's say the gov does print $2 trillion to prevent a depression. now there is more money in circulation. but also vastly more eggs are produced, there are more than enough eggs for everyone, the price of eggs will go down as there are more eggs per dollar"
by this logic eggs should be practically free now since we have been printing trillions for decades now. eggs cost more now than 2000 and it cost more in 2000 than 1980. obviously it didn't go up as much luxury real estate or picasso paintings but price of literally every single widely used consumer item is more expensive now that 10 years ago
bottom line: fed prints money -> increase in wealth -> more buying power -> inflation (duh theres more money floating around) -> price increase
depression -> demand collapses -> prices deflate |
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Date: April 9th, 2020 3:45 PM Author: Mustard mind-boggling ladyboy (http://www.autoadmit.com/thread.php?thread_id=4503574&forum_id=2#39977577) |
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Date: April 9th, 2020 4:50 PM Author: irradiated peach hospital kitty cat you're reinventing the wheel here (http://www.autoadmit.com/thread.php?thread_id=4503574&forum_id=2#39977999) |
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Date: April 9th, 2020 5:19 PM Author: emerald useless black woman voyeur sorry i'm not doing cutting-edge research in economics, but i think it's clarifying (for myself) compared to the bulk of popular articles out there and resolves 90% of the threads on XO filled with "BRRRR" memes and "JPOW CANCELLED THE RECESSION, HOW CAN HE GET AWAY WITH THIS?" (http://www.autoadmit.com/thread.php?thread_id=4503574&forum_id=2#39978230) |
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Date: April 9th, 2020 5:24 PM Author: bat shit crazy scarlet electric furnace dont discourage him (http://www.autoadmit.com/thread.php?thread_id=4503574&forum_id=2#39978251) |
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Date: April 9th, 2020 5:26 PM Author: emerald useless black woman voyeur goldbuggers and bitcoiners blown the fuck out (http://www.autoadmit.com/thread.php?thread_id=4503574&forum_id=2#39978264) |
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Date: April 9th, 2020 8:29 PM Author: Spruce Heaven Son Of Senegal money is effectively debt (http://www.autoadmit.com/thread.php?thread_id=4503574&forum_id=2#39979534) |