Came to request a tldw and you have it already posted!
Thanks!
// EDIT: Imost of the points he made are practical so overall this seems okay. I don't see hyperinflation as a real issue, here is why: If every state opened up fully and rescinded the artifical controls, you would see a huge economic boom. The pent up demand in the American (and other western countries) is actually extremely high.
The problem with the hyperinflation idea is that the inflation that we are seeing is not only artificial, but, IT IS COSTING US AND CENTRAL BANKS MONEY TO KEEP THE STATUS QUO. We are literally purchasing inflation.
I think the opposite could actually be a potential here, if western governments were just to release the clutch over a single weekend, we would see our collective economies surge like a funny fuel car racing down a drag strip.
We have real issues, high inflation is a real possibility and already happening in specific market segments, and so on, however the one thing that is not a problem is supply. Open up the economies and supplies of everything will be back online virtually instantaneously. We are at no lack for resources of any sort.
If every state opened up fully and rescinded the artifical controls, you would see a huge economic boom.
More likely you'd see more predatory practices by foreigners and cabals. I think you underestimate just how much of a disaster the free market is. NS Germany saw the greatest "economic miracle" of all time precisely because it had the correct amount of government control. While you're right that expelling the jews would create and economic boom that's not what's on the table in the near future.
We are at no lack for resources of any sort.
Neither did Romania. Maybe you should actually watch the vid. Hyperinflation isn't about resources, it's about a general, widespread lack of confidence in the currency. Once a dollar is worth half as much this year as it was last year, then it being worth half as much tomorrow is right around the corner. It's what's known as a failure cascade.
I disagree on the these points:
- Your theory on hyperinflation.
There is never any such thing as lack of confidence in currency because currency actually never has any value at all. As you are pointing out, currency is a fake store of value, underpinned by everyone simply agreeing to it as a common denominator. It solves the coincidence of wants problem in a barter based system.
Here is how to think about it:
In a free economy, no amount of currency printing can ever fully hyperinflation because as long as free trade can happen people will always find an alternate currency to trade in. The reason this is true is because supply and demand are tightly coupled and price discovery is fully built into every transaction in real time. As long as police and government allow for free trade, people will make and buy everything they need and bypass devalued currencies.
In a highly controlled economy, supply and demand are highly dislocated and real price discovery is impossible. While this is a problem the real problem is that in a highly controlled economy the government also artificially imposes restrictions on supply and demand making incredibly difficult to work around and this is where hyperinflation can happen easily.
Take Venezuela for example. If Venezuala had a free economy but decided to print currency, no problem. People might have to import less, but making and buying stuff would be no poblem they would just use another countries currency or some other value store (they used in game gold tokens from World of Warcraft for storing and exchanging value for a period of time). The people have no problem creating supply and solving the exchange of value problem in a free economy. However, Chavez is a communist and has no understanding of fundamentals of trade and economics so he applied a rigid structure supply and demand curves and killed his economy.
- Your theory on free vs controlled economics.
Also, there is no such thing as a failure cascade in economics. This literally cannot exist. Not only does it not exist, things like capitalism, socialism and communism don't exist either. They are just arbitrary labels for different types of theft.
In economics, there is only one thing: trade. That is it. Anything beyond that is just a set of arbitrary rules applied to trade at which point, the question isn't what those rules are but WHO creates the rules.
Those that create the rules they want to put on trade CAN ONLY EVER MAKE RULES BASED ON THEIR LIMITED COGNITIVE BIAS. In other words, all rules imposed on trade are rules put in place by those who want to secure resources for them selves and their kin.
This goes for you too. There is no plausible set of rules that you could ever impose on trade that you can make that WOULD NOT GUARANTEE THAT YOU AND YOUR FAMILY ARE WELL OFF.
When we talk about rules on trade, the only conversation we are having is: which group of thieves are making the rules and what benefit are they extorting out of the system.
You're both right.
I don't see hyperinflation as a real issue, here is why: If every state opened up fully and rescinded the artifical controls, you would see a huge economic boom. The pent up demand in the American (and other western countries) is actually extremely high.
That's literally the problem that causes inflation. The fed can print 7 quadrillion dollars and nothing will happen until it actually gets into circulation. The government can give everyone million dollar checks and nothing will happen until it gets into circulation.
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