Why is it so difficult for supposedly "smart" economists to understand that low interest rates are dismantling the...

That may be so - but don't draw the inference that 'putting' interest rates at 5-10% will cause a boom. When conditions conducive to growth appear, businesses make higher profit levels and can as such profit more from a given level of interest rates.

Asuka prophecy is real

So what?

Sounds like a win/win get dabbed on boomer

It's literally as if a Jew wandered into your town and said 'I give you the right to steal from whoever you want except from me as long as you give me a 10% cut'

It's only a win/win if you're a kike
Typical tricks schlomo

Nah you just made every other zoomer's money worthless.
Renting should be prohibited, and just changed into a gradual sale of sorts.

So a mortgage?

lol

Low interest rates are a symptom of the problem, not the cause.
Productivity is increasing because of automation, so to avoid an unemployment crisis, the money supply has to keep increasing.
To increase the money supply, the government can either borrow more money or cut interest rates so the private sector borrows more money.
Governments have been reluctant to borrow enough money because most of the public are under the illusion that doing so equates to economic irresponsibility. So they have to encourage the private sector to borrow more instead, even though that doesn't work very well when they don't want to borrow more.

But usury is a bad thing, and wanting to return to high interest rates is far more retarded. All it would do is enable the rich to get richer without doing any work.

>5-10%
>good
a booming economy isnt sustainable
higher interest rates lead to hyperinflation or defaults

inflation needs to be around 1.5%
interest rates need to be around 2-3%

any other answer is retarded

came here to say this desu

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2-3% are emergency level rates which is indicative of an economy in crisis.

POTATOES BEING UNDER A DOLLAR OR ABOVE TWO DOLLARS IS A SUREFIRE SIGN THAT AN ECONOMY IS IN A CRISIS!!!

>But usury is a bad thing, and wanting to return to high interest rates is far more retarded. All it would do is enable the rich to get richer without doing any work.
High interest rates will get rid of inefficient enterprises, lazy retards and wasteful allocation of resources.

Let me explain, I studied economics at a radical university of sorts.

“The reason we study economics is to avoid being deceived by other economists”

Many economists will not bite the hand that is feeding them.

Agriculture is not feasible without gibs so I'm not sure what you're on about

who cares, buy bitcoin

interest rates are a price and economists realised that finding a 'just price' for products was a retarded endeavour 300 years ago but for some reason never got around to realising that this also applies to interest rates and so they've been arguing about the absolute value of 0% or 1% or 2% interest in all circumstances as if this is something which has any meaning whatsoever
interest should probably be higher than it is now because of the unending supply of cheap fraud credit entering our systems
on the other hand, everybody being a massive pleasurebot degenerate incapable of saving means that our equilibrium interest rate is likely higher than it used to be (and our current interest rate, keeping central bank activity as fixed, is also higher than it would be if we weren't all fucking NIGGERS)

>Why is it so difficult for supposedly "smart" economists to understand that low interest rates are dismantling the economy? Why don't these retards understand that interest rates should be at least 5-10% instead of negative?

It's harder than that user , central banking was always a failure , the worse mistake in the history of mankind.
But in western democracies it gave some sense of stability because it diviided the power between politicians and bankers so politicians could no longer debase currency at will and bankers mantained the currency.

After the end of the gold standard in the us we entered clown world , because every fiat was based on the usd which was based on gold.

So if politicians kept deficits the us pop could knew it's money was based on a certain price relative to gold.

But after that the politicians started waste money with no survivors and central bankers had to patch their shit with the tools they had.

Interest rates and shilling , now we reached endgame , interest rates are at 0 and the only way they can move to clown world rates is by moving to a cashless society.

But this destroys democracy , how can you have a democracy and a cashless society?
The local state , state level government and national government can tax you to death.

Sure you could pass a law to make it illegal for them to do that , but they just do a trial to you for not paying the local tax for using the toilet and the money is debited from your cashless society bank account.

This is unironically what's happening in india , they pushed cashless society a year and half ago and they went from growing 9% per year to 4% , and if they are saying 4% it's probably less.

We are in the clam before the storm , buy bitcoin before it's too late ,because the pendulum is about to come back to judge our society.

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The problem isn't the interest rate, sure you could jack it up overnight and cause a major recession and mass unemployment but no one wants that. The problem simply is you can't use monetary policy to get money to flow towards producing things and increasing socially desirable consumption. If you can get a bigger return speculating on intangible assets that's where the smart moneys going to flow. If you want real growth you got to disincentive that and make it more profitable to make real long term investments.

based retarded lolbert logic, let me guess you want the government to hold supply against a physical commodity like gold and even criminalise private currencies (become will use cheap money if they have the choice) to "fight inflation"?

moslereconomics-kg5winhhtut.stackpathdns.com/wp-content/uploads/2018/04/The-Natural-Rate-of-Interest-is-Zero.pdf

>central banking was always a failure , the worse mistake in the history of mankind
Totally wrong. Double entry-book keeping and fractional reserve banking are the two biggest innovations humans probably came up with. The "gold standard" was the real disaster politically imposed by conservative bankers on states. Nations just need to fully realize they don't need to borrow from anyone and budget constraints can only be a result of real economic factors. No one needs to buy your stupid fucking rocks to finance anything.

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>the pendulum is about to come back to judge our society
I hope so, user. A reckoning is way past overdue.

>moslereconomics-kg5winhhtut.stackpathdns.com/wp-content/uploads/2018/04/The-Natural-Rate-of-Interest-is-Zero.pdf

I've talked about this one to you already. The natural rate of interest is zero if government is willing to use infinite credit. You don't know what interest is.

>let me guess you want the government to hold supply against a physical commodity like gold and even criminalise private currencies
no

user all these economists like larry summers, kennet rogoff and the lot belong to a certain tribe and they know perfectly well what theyre doing. heck the entire boom-bust cycle theory comes from hyman minsky who is also a member of their tribe.

Indoctrinated Dunning-Kruger headcases are the worst. KYS

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Will 0.1 BTC be enough to make it? Sorry I'm so poor

>Nations just need to fully realize they don't need to borrow from anyone and budget constraints

Hi Keynes that's what the gold standard was for , it forced politicians to keep a balanced budget since the populations could flee to PMs

Also notice how your chart the finance economy rises after 1971 when the us left the gold standard.

The collapse of your manufacturing was expected the us had nearly 100% of the world industrial capacity after ww2 , by 1964 france , japan and the uk had recovered so it's reasonable for that to happen.

What's not reasonable is your finance growing so much after the end of the gold standard.
But it was something obvious all you need to see is the printing of currency after it and the stock market after 1971 , it's a fucking circus totally disconnected from reality.

Which is why things with low supply like housing or bitcoin will keep rising non stop and it's why a boomer could buy a house in 1970 with 9 months of his income and a milenial needs 15 years.

Keynsians are probably worse than central banking since they do the shilling for this destructive system.

It's no wonder the world industrialized under the gold standard , since it favored the accumulation of capital for reinvestment.

Hell the us itself after the fall of the gold standard has barely built any shit , not dams , not nuclear power plants , hell even the apollo program died in the end of the gold standard.

At least thanks to satoshi the keynsian ponzi is about to end.

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Probably if you lock it until 2029 but make no mistake the biggest crisis in the history of mankind is coming.
India demonetization attempt shows what will happen when the try it in europe and australia , the us will probably have an hibrid system.

However if you are in crypto now odds are you make it , because there is going to be a lot of business in this area , bitcoin is going to become like a deep layer in the financial system.

For example in africa it's being used for wires by companies so african normies send wires via a company and then the company uses btc to do so.

May seem retarded but most of the population is so retarded they would fuck up doing crypto transactions and then go to r/bitcoin to ask for the customer service.

Our global markets today are built on a foundation of low interest rates. Rising rates start to crack this foundation and it’s not clear if sustained higher rates could support what’s been built over all these years. Those who want higher “natural” rates risk demolishing this growth, which is understood and admitted by many (pro and con) to maybe happen, but the argument is that a stronger economy would be built to stand the test of time for generations versus boom/bust cycles. Economists are really like the Fed (and other CBs) in that they would never admit to being led in action and their ideas influenced by present markets, but it’s exactly what’s been happening. Markets are completely dictating central bank policy all around the word and they want these lower rates forever. We can be for or against higher rates, but for the foreseeable future the decision won’t be made to allow them to rise because it’s simply not how the markets are fueled. They are fueled by low rates and so economists need to be developed accurate predictions and so far those who want low rates have been spot on with reality.

>I've talked about this one to you already. The natural rate of interest is zero if government is willing to use infinite credit. You don't know what interest is.
Fiat money doesn't really have a cost in the sense you want to imagine.

>no
That's essiently what the likes of Rothbard actually really advocate i.e. full reserve gold banking. If you allow forms of private fiat currencies into your private system gold will become irrelevant since people want cheap money not "sound money". lol

Dude, the 1945-1970's gold convertible era was also an era of (although dumb) "Keynsians" fiscal policies. Government spent like crazy building infrastructure in that era and spending on stuff like the space program. Getting off the gold standard should of been awesome, you had industrializing countries like China that were hungry for dollars and were willing to give the US tons of tangible physical consumer goods for all those "worthless" IOU's, ok that's a good trade-off if you ask me. The problem was the US moved towards monetarism as official ideology and has a fucked up system crippled welfare system instead of an actual full employment policy. Financial liberalization and such were policies Democrats and Republicans pushed for and they went after different forms of welfare reforms and such without going to the root of the issues of providing jobs for low skilled individuals the private sector doesn't want to pay for. Also a ponzi scheme is about insolvency, the government can't go insolvent and run out of dollars lol.

Based Austrian

>Dude, the 1945-1970's gold convertible era was also an era of (although dumb) "Keynsians" fiscal policies. Government spent like crazy building infrastructure in that era and spending on stuff like the space program.

And the vietnam war in the usa , which is why the gold standard fell , the gold standard was the canary in the coal mine.

>you had industrializing countries like China that were hungry for dollars and were willing to give the US tons of tangible physical consumer goods for all those "worthless" IOU's, ok that's a good trade-off if you ask me.

It's not , you destroyed the west and hide the fact of the lost purchasing power by outsourcing everything.
Put a gold price to everything you bought ods are the product bough from china cost to build 50x less in gold than the native built.

But by getting rid of the gold standard you hide that fact because you outsourced everything and natively also people are paid with the crap paper that the chinese are taking.

But what happened to things you can't import houses , education , healthcare, all went up massively to the point you see a massive fertility collapse in all western countries after the gold standard fell in the usa.

>The problem was the US moved towards monetarism as official ideology and has a fucked up system crippled welfare system instead of an actual full employment policy.

The us moved to monetarism because it was the last country with the gold standard and everyone still took the usa as the reserve currency all that mattered then was printing as much as they could without inflation after all the trade was fake papers for goods.

>instead of an actual full employment policy

Kek you had Drumpf in twitter insulting the head of the us central bank to lower interest rates to move employment to what? 3% unemployment , this is the endgame of fiat.

>Financial liberalization and such were policies Democrats and Republicans pushed for and they went after different forms of welfare reforms and such without going to the root of the issues of providing jobs for low skilled individuals the private sector doesn't want to pay for.

No shit , if you exchange printed papers for goods then your industry will be rekt as you can't compete with the rest anymore.
Creating financial bullshit jobs was again a way of hidding that fact , it was probably the best sector that could not be outsourced so jobs went there but even now the service economy is being outsourced from burgerland because of this.

>Also a ponzi scheme is about insolvency, the government can't go insolvent and run out of dollars lol.

No they can go like argentina or venezuela where no one is willing to take anymore those papers , which is even worse than insolvency because you can't recover the trust in institutions after you destroyed it in a ponzi scheme.

>Drumpf
Opinion discarded
If you want to play orange man bad head over to twitter Keynes

Fuck Keynes and fuck Drumpf with his negative interest rates.

Trumps a Keynsian cuck that wants to burn the dollar with no survivors while mantaining the reserve currency status.

Just to verify, with even 0.1 I will survive

>If you allow forms of private fiat currencies into your private system gold will become irrelevant since people want cheap money not "sound money". lol

I'm fine trying it out. People to get as much money out of their savings as possible and want to get cheap money as much as possible. The same applies to any commodity, and a universalisation of your theory would be that society must necessarily degenerate into all-out plunder because people want cheap goods and services, and therefore will steal them (independent of the counter-acting value judgements of the saver/producer)

>1000 yang bux for everyone
>Strengthen China
The dollar is fine, US internal market is big enough, military is strong enough to fight off any threat and energy resources are also plenty enough. Making it irrational to import from outside the US wont hurt the US but everyone else, so doller devaluation doesn't really hurt the US in any way.

Do you realise Argentina and Venezuela's trouble was largely due to their centrally planned exchange rates? Even with their incompetent socialist government, Venezuela would have been able to trade its way out of trouble if their currency value setting had been left to the free market.

macroeconomics is a meme. it's virtually indistinguishable from politics

>Making it irrational to import from outside the US wont hurt the US but everyone else
lol
ban the sun while you're at it to provide jobs in the lighting sector

you will need more , 0.5 the minimum to be comfy.

Politics is one reason. Some people will defend stupid ideas till they die.

Because they forgot what an economy is. They look at macro number and ignore where money actually goes.
Why do you think dems say tax cuts dontwork and Rs say it does? They are both right!
Dems say it hurts us because it just makes rich richer, while hurts the little guy. True.
Rs say it helps because it grows the economy. True
It does both.
The more interest rates are low and the more we give to the rich the more shit slides away. Remember when we had a middle class?

>interest rates should be
Why don't all you idiot retards understand that the interest rates "should" be w/e the market says it is?

Tell me what does the US really needs to import. Biggest energy producer and biggest food producer, one of the biggest producers of steel and so and so forth. If the US would go full protectionist, basically force the rest of the world to buy US goods and make it extremely expensive to export to the US, it wouldn't hurt the US. Sure, China would be back to be the shithole country it was before the big outsourcing, Europe would start to struggle hard and Canadian would get a real problem, but what does the US care if anybody outside the US dies in the next two seconds.

NOOOOOOOOOOOOOOO YOU CAN'T JUST SAY THAT WE CAN'T DRAFT UP A PRIORI JUST PRICES FOR EVERY GOOD AND SERVICE AND ENFORCE THEM BY LAWS

Kek , the only reason the us is still a reserve currency is because the rest of fiat is even shittier.

If trumps moves to cashless society the us will collapse at high speed , since it's hard to even open a bank account in the us as a foreigner , what's the point of having the us as a reserve currency if it's only printing to buy stuff for themselves while making it to everyone harder to even use the usd.

It's almost as if the us wanted to destroy it's reserve currency status to be honest.

The centrally planed rates arrived because the deficits where increasing the value of foreign currency while keeping their own down.
The government frozen rates to hide that fact and prevent it's citzens to move to other currencies.

The us does not suffer that because since the end of bretton woods it remained the default reserve currency , a place that the us will lose if they move to negative interest rates.

Only reason the us is not memezuela with it's deficit is because there is a lot of demand for usd worldwide so the us does not suffe the inflation it generates , all that will change the day they move to negative interest rates since that will force the abolition of cash and the us won't be able to export it's inflation anymore.

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things that it's less better than other countries at
being better at something than someone doesn't mean you should do it instead of them. why do families get kids to lay the tables? because adults are incapable? why do young people do low-end jobs? because management can't? why don't CFOs do day-to-day bookkeeping? because trainees are better accountants?

it's rather strange how the gold standard got so popular with buttcorners, but you need to zoom out. without 100% agreeing with the other user, it's a historical fact the gold standard was pushed *by* central bankers and agreed by brainlet politicians
all US presidents that tried to give the state the control of the money supply were assassinated within the next 5 years (overtly or not). study the 19th century more than the 20th century, all the answers to our current situation are there

take a person who is the best in the world at everything - is he being exploited (somehow, given his superiority) at all angles by his interactions with other people? he would, by your principles, produce more if he were entirely self-sufficient.
he would build his own house, design the internet, do is own sewage plumbing, make his own reservoir, make his own pencils from absolute scratch, make his own roads, grow his own vegetables, raise his own cows, sew his own shirts, do his own accounts (not that he'd use any money), make his own music, wash his own dishes, write his own books instead of reading that of others, deliver his own letters (if he were to ever interact with anyone) instead of employing a courier or delivery service

of course, this isn't actually how he would behave. that's because being better than other people at something does not mean that it's inefficient to get that person to do that thing for you so that you can focus on something else.

Wouldn't be the dumbest move. It would make the US more independent of geopolitical shit slinging, it would fuck all those that export to the US really hard and it could strengthen the US internal market. In addition if the dollar stops being world reserve currency, there is currently no competitor and it would create a heavily fractured monetary world from which the US do to its military strength and its internal market strength could also profit. Trump did literally everything right to make the US more independent from the globalists fever dream and send every potential competitor at each others throat, from which the US profits.
>Whataboutism
Not an argument to find in there. From a national point of view ignoring all the globalists dreams and hopes of a post westphalian world, the US best interest is to fuck everyone over that is profiting from them.

With the Asuka Prophecy in place it's a losing battle getting that high in time by myself. Maybe I can get to 0.3 if I really starve myself this year and next. Thanks

so you've managed to make yourself insular from logical critique by calling applications of the obvious principles of your claims 'whataboutism'

good job man, enjoy your psychological reliance on the goodness of good goy drumpfie

Maybe it's the opposite. The interest rates are going down because the economy has been dismanteled.

To have a good economy, you'd need to have optimism, something exciting to work hard for and to look forward to.

With all the money and all the resources that governments have they could have given us a conquest of space, eternal youth, etc. Instead they are investing in importing 3rd world people into 1st world countries.

That leaves nothing to look forward to, except, maybe, the collapse of the entire system.

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Low interest rates do not prevent anyone from making money, except those inefficient producers that refuse to automate.

Even what you dismiss as "busywork" doesn't destroy value; in some cases it doesn't produce much either, but the people employed would otherwise be unemployed. And in many cases there's plenty of useful output even though most people don't see it.

High interest rates don't discriminate by efficiency, and are likely to devastate startups that would otherwise have a good long term future, while large inefficient enterprises with a lazy balance sheet would be relatively unscathed. Unemployment is the biggest waste of resources. And what do you imagine would happen to those "lazy retards"?

>it's a historical fact the gold standard was pushed *by* central bankers and agreed by brainlet politicians

Of course the gold standard was gold lighting network and eventually they removed the back end.
Still better than nothing.

On this we agree it would be good for the us , but look at Drumpf , he shills to destroy the usd and devalue it one day and the next he is saying greatest currency eva , best currency in the world strong dollar.

The us leadership wants weak currency and reserve status , you can't have both.

>Trump did literally everything right to make the US more independent from the globalists fever dream and send every potential competitor at each others throat, from which the US profits.

No he did not all he had to do is push for cryptocurrencies and allow them to be used to top up bank accounts in the usa.
That would have prevented the rest of the countries of devaluating against the usd since their citzens could have used crypto to bypass capital controls and open bank accounts in the usa.

Instead he put tarrifs and china devalues next making them retarded.
Make no mistake i know trump is not the bad dude here , but he is playing this all wrong and next year even the worse democrat will win.

The chinese are playing him , they won't accept any trade deal nor honor it , they have targeted the republican states with their tarrifs and no matter how much trump celebrates the creation of jobs it's irrelevant if they are shit part time jobs because the local industries been rekt.

Only reason there is some industrial growth in the usa is because many countries said fuck it and simply opened larp manufacturing lines to bypass any tarrifs by ensambling the last part in the usa with probably mexican parts kek.

Good luck user we are going to need it.

I smell chink. I'm European and my interest is that Chinas pseudo communist police state logic doesn't spread further as it already did, best way to achieve that is fucking China economically back to the dark age, best way to achieve that is have the US go full protectionist and cut China of from the most important market it has feeding its corrupt power structure. The same thing goes for the EU and all other IOs that don't have freedom in mind but some post westphalian fever dream relying on marxist and universal egalitarian fallacies that humans can be trained in to being one race shit to work for the best of everyone by grabbing each others dicks and feeding the central planning committee.

So take your muah drumpf orange man bad logic to twitter and tweet with all the other pissed of marxists and blue haired universal egalitarians that try to sell that some African with genes and behavior closer to an hape can be trained into a European with just enough resources shifted to some sociologist in a cushy office

This is what keysians don't get , why would you wage to have most of your income going to taxes and never even being able to buy a house becuase quantitative easing made a massive bubble.

People are starting to crack in all the west you even sense this shit in fucking reddit comments , the normie milenials are waking up to the fact that they are reaching their 30s and are not even 5% in the wealth needed to own a house.

The blackpilling in mass scale is happening right now.

Actually the government kept the Venezuelan Bolivar's exchange rate fixed against the US Dollar BEFORE it started collapsing. And when the price of their main export (oil) halved, they kept the exchange rate the same, with devastating consequence.

The US does not suffer that because the market sets the value, and its long term value is based on the USA's exports. Its reserve currency status was crucial a few decades ago, but its value has diminished as financial markets have become more sophisticated.

>tfw European

what do? buy USD/EUR?

>Actually the government kept the Venezuelan Bolivar's exchange rate fixed against the US Dollar BEFORE it started collapsing.

Official rate , already by 2006 there was sa black market rate because the government did not sold foreign currency to plebs.

because you have absolutely no understanding of economic principles the only thing you can do is shit sling insults
go read a book
enjoy hamstringing yourself and then blaming marxists for your falling behind while all countries lose any remote trade ties with the USA and have no reason to behave in a remotely friendly way with it anymore since they're no longer dependent
wow he thinks that protectionism is bad he just be a BLUE HAIRED MARXIST SNOWFLAKE

fucking boomer talk
retard

Macroeconomic policy doesn't do much to set the supply and demand of housing, but at least it can be used to create jobs; the housing situation's far worse without one.

>
>all he had to do is push for cryptocurrencies and allow them to be used to top up bank accounts in the usa.
That would be a bit too edgy to sell to amerimutts, have to ease them easily in to an new monetary paradigm and that monetary paradigm can't be bitcoin. A crypto based monetary system maybe, but it is too early to say.
>Putting tariffs on China
>larp manufacturing
That is how it starts and the target is not really China, the Chinese are just a piece of clay where mostly foreign companies produce for cheap. There are many other policies that could be applied in the long run to fuck exactly those companies world wide if they don't play ball, cutting them completely off from the US market would be imo the best, but a way to blunt method

But the black market wasn't efficient enough to solve the problem.
It's stupid to fix the value of a currency against anything, including gold.

>I NEED MY CHEAP IPHONE FROM CHINA
>RRRRRRRRRREEEEEEEEEEEEEEEEE
You fool, especially from a US perspective, there doesn't need to be any foreign trade. Europe, Canada and all Asian sweat shop countries, sure they need a market like the US it to keep their standard of living, not go dark over night and have insurgencies doing what needs to be done with the post '45 power structures. But the US, no, no need for steel from South America to fund someones social programs to keep the population from stringing them to a rope

The fed official data shows that in 1920 a worker with the poorest job could buy a house with 8 months of his income.
A boomer in 1970 probably with 20 months
In 1980 with 3 years of savings
In 1990 with a 15 year mortgage
In 2000 with a 30 year mortgage
After 2008 we are in clown world an milenials don't even own bikes for fucks sake.

After the us left the gold standard all reference to any real world was lost since everyone is devaluing their currencies against each other.

>That would be a bit too edgy to sell to amerimutts, have to ease them easily in to an new monetary paradigm and that monetary paradigm can't be bitcoin. A crypto based monetary system maybe, but it is too early to say.

But you get my point , the tarrifs don't do shit if after you put the country devalues their currency making their exports cheap.

>That is how it starts and the target is not really China, the Chinese are just a piece of clay where mostly foreign companies produce for cheap

You assume us normies mostly milenials and soon zoomers that can barely reach their end month in money terms and are being rekt by debt and taxes will tolerate the cost in prices that you will have to pay for tarrifs.

You can't fix 50 years of decay in 4 years and using tarrifs as the only tool.

ok so how do (((they))) fit into all of this

I get your point, but the tariffs are just one possible policy, and it is perfect to build a narrative on it; China doesn't care for the tariffs, US companies producing in China still try to undermine them with China keeping devaluing their currency, so only method left, ban all products from China and bankrupt globally operating US companies unless they come back to the home country and provide jobs. And from Chinas perspective, they can just devalue their cirrency that much before their own population starts to not just shiffon capital out of china but openly rebels and China doesn't has many answers to wide spread regional insurgencies, it would put the country back into a situation like before the communist take over and break it for the next 50 years at least.

QE inflates asset prices so it helps people that are already wealthy

you knew the answer OP cmon

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That's mainly because very little is being done about housing supply.

based

US and europe banking laws are making capital flight harder than ever tough.

No it's because since the end of the gold standard currency has lost all connection to reality and it's being devalued non stop every day every second.
Bitcoin and housing are like thermometers for this devaluation of the currency.

From the fed own data

fred.stlouisfed.org/series/BOGMBASE

Monetary circulation is almost 5x from 2008 a house that was 100k should be 500k now and you get the idea.

Things you import don't suffer from this shit because the world buys your reserve currency for nothing.

>btw i just noticed the bog in the link kek.

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btw first time i honestly looked at the chart of the us monetary base , i suspected it was bad but fucking hell , bitcoin was born in that big blue dildo at the end of 2008 no wonder satoshi attacked the banks in the genesis block.

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Oh how quick man is to forget the past.

You can't do much about that. For that you need tangible and limited supplies, of which land is most valuable and that's where the problem lies - the currency got untied from anything tangible, but you still need to live in a tangible home.

>the currency got untied from anything tangible, but you still need to live in a tangible home.

This guy fucks.

You're simply wrong... people are consuming a lot more shit than they ever could in 1960's, those cheap consumer goods just wouldn't have been produced with a small amount of expensive labour. Ya a variety of stupid policies resulted in problems with housing and such but that wasn't a pure monetary issue. America didn't exploit their capacity and let a lot of shit fall to pieces which didn't need to happen.

All industry that got rekt was lower value shit like making barabie dolls which is simple and can be done cheap but more complex shit like making jet engines was more safe.

Negative interest rates isn't a "Keynsian" idea, Keyens didn't think monetary policy could solve economic issues

The true Mises/Rothbard types wouldn't agree with you FYI

books.google.ca/books?id=e5G13fmGBpsC&pg=PA205&lpg=PA205&dq="opened the Pandora's Box of money-crankism."&source=bl&ots=-fb5sZ2NTQ&sig=ACfU3U1n0jZuXnaeSmIDnOu3zHZPFmb3Cg&hl=en&sa=X&ved=2ahUKEwi84s-547LkAhXmmeAKHbTpAL8Q6AEwCXoECAcQAQ#v=onepage&q="opened the Pandora's Box of money-crankism."&f=false

US is the reserve currency because they're willing to run massive deficits to give everyone out there dollars, no one else wants to "take the risk" lol... and no even with negative rates central banks worldwide will keep buying US debt.

Argentina borrowed heavily in USD because they're dumb as fuck and I know the Venezuela state oil company and such was issuing bonds in USD (also that was basically their whole economy which got fucked with sanctions and such).

To add to From what I understand, the lower the interest rate the more people borrow. Banks are able to lend out 10x the amount of money they keep in their reserve/balance sheet. In other words, the reserve they keep in cash versus what they loan out is only a fraction of the latter (hence fractional reserve banking). The FED (our central bank) gives them the extra money by simply adding a few zeros to their balance sheet. In other words, the more we loan out, the more money is “printed”... I.e. inflation.

fiat also directly enables degeneracy: an endless supply of money means "value" is eventually assigned to otherwise unsustainable and antisocial behaviors

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As the value of currency increases, so deos the cost of dormant capital. Negative interest rates encourage investment instead of idleness. In short, liquidity in terms of capital ratio becomes more expensive.