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[–] EyeOfHorus ago 

Hey, I'm an economist too. I come across people like you all the time that believe the same fallacy, so don't feel too bad about it.

Probably originated in some shitty econ101 text book you read and your teacher/professor never challenged it.

Since economics is a religion to you I won't even try to correct you myself. But, I strongly recommend this article as food for thought. It might help you better understand economics. You've got to first question the "belief structure" you were taught in school. Otherwise I can't break you from the cult mindset. If something you've come to rely on as a foundation (money supply) is questioned it might make the insecure person deny criticism. It might rock your world. Its only human nature to at first deny opposing viewpoints. It would mean you are wrong, and nobody wants to be wrong.

If the money supply has to grow then why did Wiemar Republic fail? Why is Venezuela a shit hole? Or is it that they grew the money supply too fast? Perhaps you believe the money supply must be controlled by a central planner or central bank? So not really a free market. The money supply is then a monopoly.

What about Bitcoin? Is that money? Or currency? Its valuation is through the roof, but its growth is minimal. Would a digit currency have the same problems as your "cut pennies into fraction" argument?

Speaking of pennies, if 5 pennies in 1915 has the same purchasing power as 100 pennies now, then doesn't the USD currency have a long way to backtrack until its inflation is unwound? Are you really worried about cutting pennies? Its really a silly argument taught in econ101.

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[–] avgwhtguy1 ago 

Bitcoin doesnt have the same problem because its divisible, thus it is a superior currency in the face of deflation. It doesn't need to grow at the same rate as the economy, it can divide at the same rate as the economy grows.

Im not worried about cutting pennies, they're printed plenty fast. If pennies were backed by a finite supply of gold, then you could imagine a scenario where pennies would need to be cut.

Inflation and deflation are separate forces, but both will come in time if a currency is incapable of balancing its supply based upon demand. Any designed currency should be designed to handle demand, deflation, inflation, and counterfeiting. I do not believe that requires a central banker or a monopoly, and cryptocurrency proves that. That being said, the USA should have a monopoly on the production a national currency, it's in the constitution. It is not in the constitution and doesn't have precedent that citizens would be barred from using currencies other than the federal one. And given that, the federal currency should be strong, which derives from utility. Crypto has proven utility and thus strong and increasing value doesnt need central planning or gold backing.

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[–] EyeOfHorus ago 

I stopped reading at your penny bullshit. Pennies were made of copper, just as quarters and dollars were made of silver. The unit of value was the value of the material they were minted. If you chopped a dollar into 1/4s' then you'd end up with four Quarters. Sound money.

FRN's can't do this. PERIOD. That is why our money is a forgery.

I suggest you unlearn the bullshit you spew.