The deflationary nature of BTC - is it bad?
I somehow go to the site and see (quote):
What is the main problem of the economy based on deflationary currency? Stagnation. Roughly speaking, the constantly growing exchange rate encourages people not to spend money, but to accumulate it. In addition, the ability to profit from simple hoarding saves people from having to produce goods and services. The result is a tough crisis of the entire economy, because society cannot live in prosperity when no one does anything.
So, I think, a provocation!
')
This is a quotation from a bitcoin cryptonnet article. I have been reading articles about various currencies for a long time and therefore I couldn’t have passed by such a quote, although, if it were an article from another Keynesian, I would simply close the tab. But ... the article was about cryptocurrency, so I decided to register.
You could often hear these bikes:
Defflationary crisis
Deflationary spiral
Deflation is evil
And so people came up with a new nonsense: deflationary nature. Let's deal with these myths finally!
Just imagine such a picture, an uneducated tradeswoman with seeds comes out of a filthy driveway, that when she joins her business colleagues, she suddenly catches herself and begins to nervously talk about the deflationary nature of her money. It looks like this:
- Hey, mother, the indices of this, as his ... Goks (MtGox) again collapsed the other day!
- Yah! Here are the ones on ... All the fault of Bitcoin's deflationary nature!
Well, sir, did you submit the scene? Funny is not it? It is foolish to argue that there are some deflationary spirals and natures that everyone knows about. This is not true.
Can any of you call a country with deflation and no money regulator? If not, I will answer for you: there are no such countries! Japan was until recently, but there was no “stagnation” in it at all. In Japan, there is a preferred Central Bank, the yen - the only legitimate currency of Japan (the purest monopolism). And the law in our day is not a law, but an order. “We order you to obey, because the law is harsh, but ... this is an order!” But in addition there are trade unions in Japan, legislative intervention, protectionism, customs, and other delights of modern society called “the state”.
“Has a crisis occurred and your deposits disappeared from the banks?” Well, it’s all the fault of the Central Bank’s inaction! ”“ Inflation is wild, say ?! Guys, you are not stupid, because, after all, you were taught at universities that Freedom of market relations and the uncontrollability of certain individuals were to blame! Do you want deflation ?! ”And stuff like that.
Keynesianism, which had long been crushed by Austrian economists, still holds the show all over the world. Mainstream etatists
When they tell you how bad deflation is, and Bitcoin is in a place with it, the “critics” forget to mention one important thing: inflation and deflation can be market and artificial (dead). If the central bank monopolizes the issue of monetary units, then who will prevent him from engaging in counterfeiting? He does this. His task is to forge money.
Yes, certainly centrally-controlled inflation or deflation, like the state plan, can easily create huge problems for people. Chopped up a hundred trees - exceeded the plan by 100%! It seems like well done, but in reality such an initiative is a stupid harm, because There was not enough space in the warehouses. Surplus rotted. Chopped up a little - a deficit. Try to understand what the plan is "correct" and which is wrong in the absence of market signals (prices) for raw materials. With money the same trouble.
If money were decentralized, if they were competing with each other, prices would have remained at the same level for centuries. Although Keynesian fanatics will convince you that there will be deflation and people will stop eating, drinking, receiving education services, having fun, using medical services, traveling, etc. Try not to eat at least a week. After such an experiment, you will understand the stupidity of Keynesians regarding the destructiveness of market (ie, natural) deflation.
Gold was forbidden for exchange precisely because it is difficult to fake. Therefore, people accumulated it. Accumulation for modern mainstream economics is the worst nightmare.
But how to finance the endless war? After all, just that, people went into gold and the government was deprived of the tools of warfare.
Obama, when he went to the presidency, called Bush’s actions on printing greenery a “non-patriotic exercise.” But when he got to the absolute power ring, he himself began to actively forge dollars, destroying people's savings and redistributing money from everyone to the most privileged. That is why the rich get richer and the poor get poorer. This is pure socialism, when some live at the expense of everyone else!
Bitcoin, like gold, at one time, deprived officials of the levers of control of the masses. Putin seeks to subjugate the Central Bank of the Russian Federation through the "nationalization"? But how will he control bitcoin? They will have to "nationalize" the Internet.
Why is a cryptocurrency blamed for all mortal sins, although the example with silly and uneducated saleswomen of seeds proves convincingly that the horror of deflation is just a myth that can only frighten children and a left professorship? To be afraid of her Officials are afraid of losing the loot. Fed economists Keynesians also do not want to lose their earnings. The pink-left professorship will be simply dismissed, because their knowledge is ideology, not science. Bitcoin set a precedent. Dangerous precedent.
In the mid-to-late 19th century, there was both inflation and deflation in the United States. More precisely, the fluctuations were very insignificant, but the prices have not changed for 50 years! Why no one died, there was a great depression (the crisis that was caused by the creation of the Central Bank of the United States - the Fed), why did the United States become the most developed country in the world during this period? And all because of inflation and deflation were local, not affecting the entire market with its mini-markets.
In the case of entering the local market of building materials of huge sums - prices are rising for all. There is a market and local inflation. However, it ends in a short time and prices return to their previous level.
When Tsbanki print paper, businessmen who receive it through banks invest in the expansion of their enterprises. But as soon as prices rise, bankruptcies begin. That is what happened in the "great depression." That is what happened in the 87th year, in the 98th, in 2008. And there will be many more such crises. Constant inflation is just additional taxation, nothing more.
Therefore , the Austrians were right in predicting the collapse of socialism as a centralized system. Once again, the banking-privileged system will collapse and the bankers will again run to Obama, who will again be rescued by “these fat, brazen cats” at the expense of the US population. Gordon Gekko was also right when he delivered his famous speech to the shareholders! Accumulation really saves society from the destructiveness of rising prices. So when the money goes offshore - rejoice, because you are saved from inflation!
So market deflation is not dangerous. Just imagine - prices do not change for 50, 100 or 200 years! There are many examples. Is it possible to imagine something similar today? There were only two such examples in the world - Singapore and Hong Kong, but they have a significant drawback - linking privileged national currencies to the privileged center of the United States (FRS). With the advent of Bitcoin, this situation may change. There will be a wild competition for Bitcoin capital, the rapid growth of Bitcoin companies and startups based on cryptocurrency has already begun. But a variety of monetarists on EuroNews continue to scare people by telling them how “dangerous” the new exchange tool is. And note that “experts” are only interested in two topics related to Bitcoin:
1. The danger for emission centers (and, in fact, for their "expert-analytical" "work" that is for the wallet)
2. Use negative information about cryptocurrencies and gold to intimidate ignorant people (including on habrahabr, unfortunately).
This is how Keynesian stories about “the horror of deflation” and the benefit of inflation arise.
To summarize, I would like to draw your attention to the fact that nothing like this would have arisen without the Internet. And this precedent will either return people freedom, depriving the supreme-power groups of interested persons of their privileges, or you and I will lose the Internet. The latter, as you know, is technically feasible.
People have heard about inflation - it hits their pockets. Bitcoin does not hit anyone's pockets. It simply gives people what they need — a convenient exchange tool that gets more expensive. And you could never hear about the term “deflation”, just like any saleswoman of seeds in the bazaar.
What is the main problem of the economy based on deflationary currency? Stagnation. Roughly speaking, the constantly growing exchange rate encourages people not to spend money, but to accumulate it. In addition, the ability to profit from simple hoarding saves people from having to produce goods and services. The result is a tough crisis of the entire economy, because society cannot live in prosperity when no one does anything.
So, I think, a provocation!
')
This is a quotation from a bitcoin cryptonnet article. I have been reading articles about various currencies for a long time and therefore I couldn’t have passed by such a quote, although, if it were an article from another Keynesian, I would simply close the tab. But ... the article was about cryptocurrency, so I decided to register.
You could often hear these bikes:
Defflationary crisis
Deflationary spiral
Deflation is evil
And so people came up with a new nonsense: deflationary nature. Let's deal with these myths finally!
Just imagine such a picture, an uneducated tradeswoman with seeds comes out of a filthy driveway, that when she joins her business colleagues, she suddenly catches herself and begins to nervously talk about the deflationary nature of her money. It looks like this:
- Hey, mother, the indices of this, as his ... Goks (MtGox) again collapsed the other day!
- Yah! Here are the ones on ... All the fault of Bitcoin's deflationary nature!
Well, sir, did you submit the scene? Funny is not it? It is foolish to argue that there are some deflationary spirals and natures that everyone knows about. This is not true.
Can any of you call a country with deflation and no money regulator? If not, I will answer for you: there are no such countries! Japan was until recently, but there was no “stagnation” in it at all. In Japan, there is a preferred Central Bank, the yen - the only legitimate currency of Japan (the purest monopolism). And the law in our day is not a law, but an order. “We order you to obey, because the law is harsh, but ... this is an order!” But in addition there are trade unions in Japan, legislative intervention, protectionism, customs, and other delights of modern society called “the state”.
“Has a crisis occurred and your deposits disappeared from the banks?” Well, it’s all the fault of the Central Bank’s inaction! ”“ Inflation is wild, say ?! Guys, you are not stupid, because, after all, you were taught at universities that Freedom of market relations and the uncontrollability of certain individuals were to blame! Do you want deflation ?! ”And stuff like that.
Keynesianism, which had long been crushed by Austrian economists, still holds the show all over the world. Mainstream etatists
When they tell you how bad deflation is, and Bitcoin is in a place with it, the “critics” forget to mention one important thing: inflation and deflation can be market and artificial (dead). If the central bank monopolizes the issue of monetary units, then who will prevent him from engaging in counterfeiting? He does this. His task is to forge money.
Yes, certainly centrally-controlled inflation or deflation, like the state plan, can easily create huge problems for people. Chopped up a hundred trees - exceeded the plan by 100%! It seems like well done, but in reality such an initiative is a stupid harm, because There was not enough space in the warehouses. Surplus rotted. Chopped up a little - a deficit. Try to understand what the plan is "correct" and which is wrong in the absence of market signals (prices) for raw materials. With money the same trouble.
If money were decentralized, if they were competing with each other, prices would have remained at the same level for centuries. Although Keynesian fanatics will convince you that there will be deflation and people will stop eating, drinking, receiving education services, having fun, using medical services, traveling, etc. Try not to eat at least a week. After such an experiment, you will understand the stupidity of Keynesians regarding the destructiveness of market (ie, natural) deflation.
Gold was forbidden for exchange precisely because it is difficult to fake. Therefore, people accumulated it. Accumulation for modern mainstream economics is the worst nightmare.
But how to finance the endless war? After all, just that, people went into gold and the government was deprived of the tools of warfare.
Obama, when he went to the presidency, called Bush’s actions on printing greenery a “non-patriotic exercise.” But when he got to the absolute power ring, he himself began to actively forge dollars, destroying people's savings and redistributing money from everyone to the most privileged. That is why the rich get richer and the poor get poorer. This is pure socialism, when some live at the expense of everyone else!
Bitcoin, like gold, at one time, deprived officials of the levers of control of the masses. Putin seeks to subjugate the Central Bank of the Russian Federation through the "nationalization"? But how will he control bitcoin? They will have to "nationalize" the Internet.
Why is a cryptocurrency blamed for all mortal sins, although the example with silly and uneducated saleswomen of seeds proves convincingly that the horror of deflation is just a myth that can only frighten children and a left professorship? To be afraid of her Officials are afraid of losing the loot. Fed economists Keynesians also do not want to lose their earnings. The pink-left professorship will be simply dismissed, because their knowledge is ideology, not science. Bitcoin set a precedent. Dangerous precedent.
In the mid-to-late 19th century, there was both inflation and deflation in the United States. More precisely, the fluctuations were very insignificant, but the prices have not changed for 50 years! Why no one died, there was a great depression (the crisis that was caused by the creation of the Central Bank of the United States - the Fed), why did the United States become the most developed country in the world during this period? And all because of inflation and deflation were local, not affecting the entire market with its mini-markets.
In the case of entering the local market of building materials of huge sums - prices are rising for all. There is a market and local inflation. However, it ends in a short time and prices return to their previous level.
When Tsbanki print paper, businessmen who receive it through banks invest in the expansion of their enterprises. But as soon as prices rise, bankruptcies begin. That is what happened in the "great depression." That is what happened in the 87th year, in the 98th, in 2008. And there will be many more such crises. Constant inflation is just additional taxation, nothing more.
Therefore , the Austrians were right in predicting the collapse of socialism as a centralized system. Once again, the banking-privileged system will collapse and the bankers will again run to Obama, who will again be rescued by “these fat, brazen cats” at the expense of the US population. Gordon Gekko was also right when he delivered his famous speech to the shareholders! Accumulation really saves society from the destructiveness of rising prices. So when the money goes offshore - rejoice, because you are saved from inflation!
So market deflation is not dangerous. Just imagine - prices do not change for 50, 100 or 200 years! There are many examples. Is it possible to imagine something similar today? There were only two such examples in the world - Singapore and Hong Kong, but they have a significant drawback - linking privileged national currencies to the privileged center of the United States (FRS). With the advent of Bitcoin, this situation may change. There will be a wild competition for Bitcoin capital, the rapid growth of Bitcoin companies and startups based on cryptocurrency has already begun. But a variety of monetarists on EuroNews continue to scare people by telling them how “dangerous” the new exchange tool is. And note that “experts” are only interested in two topics related to Bitcoin:
1. The danger for emission centers (and, in fact, for their "expert-analytical" "work" that is for the wallet)
2. Use negative information about cryptocurrencies and gold to intimidate ignorant people (including on habrahabr, unfortunately).
This is how Keynesian stories about “the horror of deflation” and the benefit of inflation arise.
To summarize, I would like to draw your attention to the fact that nothing like this would have arisen without the Internet. And this precedent will either return people freedom, depriving the supreme-power groups of interested persons of their privileges, or you and I will lose the Internet. The latter, as you know, is technically feasible.
People have heard about inflation - it hits their pockets. Bitcoin does not hit anyone's pockets. It simply gives people what they need — a convenient exchange tool that gets more expensive. And you could never hear about the term “deflation”, just like any saleswoman of seeds in the bazaar.
Source: https://habr.com/ru/post/204074/
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