You are a good teacher Alain - well said. My personal opinion is that we cannot give this kind of power to large institutions. There will always be misuse and the cronies as you say will always be the beneficiary as they can 'scratch' the back of the central banks. Unfortunately we do accept the status quo. With modern technology we could have other means to regulate our barters. As you say the whole thing hangs on the speed. The only reason to not use direct barter is that it takes very long time to find business opportunities. Money supposedly solves that problem. However, we have now let this instrument have its own life. Manipulation is now the name of the game to achieve political, financial and military goals (see surge in US dollars). Because the manipulation is on a national basis, we have introduced another political/ military weapon. Currency fluctuations - not because of different prices but because of political reasons will of course screw up the barters (I say that because it all should be about barter and that is it.)
Best Regards , Lennart Thornros www.StrategicLeadershipSac.com lenn...@thornros.com +1 916 436 1899 202 Granite Park Court, Lincoln CA 95648 “Productivity is never an accident. It is always the result of a commitment to excellence, intelligent planning, and focused effort.” PJM On Thu, Aug 13, 2015 at 12:46 AM, Alain Sepeda <alain.sep...@gmail.com> wrote: > I would add also that currently central bank are desperately injecting > keyneisian money to stop depression, and deflation, but all it does is > inflating assets values, not prices. > > this is benefiting finance and crony capitalism, not real economy which > suffer from bad investment decisions. > > people asking for gold (I find it stupid) or electronic curencies where > central bank cannot manipulate the primary monetary mass do to prevent > cehtral bak to promoting crony practices like today. > > my feeling is that it cannot work, because M3 money is not printed or even > mined. > > someone explained how you can create money in a sane economy (and I > understood why there is no inflation despite tons of paper printed). > > imagine that you are in a world with real great opportunities, like > farming rice with neolithic technology. > > the idea is that as soon as you have money, even if the mass is small, you > pay someone to work, and this man have money, that he can consume, or > invest. > this gives money to people who can buy or consume... > if people have many thing to buy or to invest and always work to do that > is productive, the money wil circulate very quickly. > > deflation in 1929 was because people stopped buying goods, buying work, to > look less indepbted. > hyperinflation in germany was on the opposite becaus epeopel lose trust in > deutchmark and immediatemy bought goods with money, to people who do the > same ASAP. > > monetary mass is not the key factor... key is the speed, and the > opportunities or fears. > > if there is opportunities to create value, money will flow, and be reused > hundred of time a month. > if people are depressed they will keep it dying on an account. only hope > is the bank reusing it (where fractional banking is useful), but if people > invest them in dead value (bonds on dayly state expenses) it will not flow > anymore. > if people are terrorised on the opposite money will flow frantically like > false notes. > > today we have strandes asses that are exchanged frantically creating asset > bubles. > on the opposite there is depressed economy which make real economy deflate > because nothing real seems productive. > > central bank don't solve, but feed, those problems. > > 2015-08-13 10:25 GMT+02:00 Alain Sepeda <alain.sep...@gmail.com>: > >> it seems there is an irrational fear of "good deflation". >> >> what people are afraid of is the deflation-depression like in 1929+, but >> before 1900 there was regular deflation which was not so evil. >> >> currently the "Airbnb deflation" is giving value to the people by >> reducing prices of goods and service... >> the problem is not inflation or deflation, but rigidities in prices and >> rates, in contracts, compared to price. >> >> inflation is a way to break rigidities in too high wages, too high rates >> >> deflation is natural and sane in economies where there is growth of >> productivity. >> This is a good way to increase wages. >> >> one fear is that deflation push people not to consume, but if deflation >> is on goods that you need immediately and consume, delay is absurd. >> deflation in housing may be a problem for investors, but deflation of >> rent, of vegetables, meat, even of cars or computers, is not a problem. >> >> 2015-08-13 5:01 GMT+02:00 Eric Walker <eric.wal...@gmail.com>: >> >>> On Wed, Aug 5, 2015 at 2:11 PM, Jed Rothwell <jedrothw...@gmail.com> >>> wrote: >>> >>> I know little about economics, but limiting the amount of money based on >>>> the amount gold we have -- or the number of bitcoins -- seems like utter >>>> lunacy to me. It never worked in the past. There are two reasons: >>>> >>>> 1. The money supply has to increase when there is more economic >>>> activity and more people, or you get severe deflation. This happened in the >>>> U.S. and other countries on the gold standard. Severe deflation is a bad >>>> thing. >>>> >>> >>> This is the reason I've never understood the appeal of gold or bitcoin. >>> The urge to take the control of the amount of money in circulation out of >>> the hands of central banks seems to disregard the danger of deflation. >>> >>> Eric >>> >>> >> >
