RE: If Stocks Aren't Allowed To Fail, How Can You Say Bitcoin Will?
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I think it's quite complicated and the arguments are actually just bad categorising.
- Is technology a growing deflationary force? - Yes there's technological deflation
- Are wages flat or deflating - Yes in purchasing power wage deflation
- Are assets inflating - I would say so there's asset inflation
- Are goods and services inflating? - Yes I would say comparing to your purchasing power it is
- Is bond repurchasing technically deflationary - Yes
- Is debt blowing up deflationary - Yes there's lots of debt deflation
- But what are banks doing with the cash and how much does the fractional reserves they keep even matter?
We can debate this and that and I get it but for the man on the street, they are living in inflationary times, the rich definitely are getting all the benefits of deflation.
The economy shouldn't have to be this complicated and the fact that both our opinions are up for debate should indicate how obfuscated these rules are and how few can even understand them
Also, check out this rubtutle on the van metre theory -
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I took the time to watch the video so I understand the issues. The ultimate deciding factor is whether or not the banks want to lend. If they don't then everything Stevan Van Metre works out but if they can lend and take money out, then it will be inflationary. I don't think I heard his view so I think its good to know.
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Exactly and we don't know what each bank is doing, we can see that real estate in certain sectors are moving up as well as stocks so I assume that's where they are lending, so while we don't see inflation in some parts, we are seeing inflation in stocks and real estate
QE by definition is not inflationary but what the banks do once they free of debt, is most likely inflationary, they need to do something with that money, sitting on money doesn't bring them an income
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