Bitcoin and Crypto Thread

Australia Sucks said:

Austrian economists predicted the collapse of the soviet union based on first principles decades before it happened while retarded mainstream economists kept publishing in their textbooks that the USSR would become the number 1 economy in the world and overtake the US. Martin Armstrong though not strictly an Austrian economist leans that way but with a more real world style analysis that is less academic and he produced a lot of sharp analysis.

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By the way Scorpion you haven't addressed this nor the fact that certain Austrian economists predicted the 2008 global financial crises while mainstream economists were asleep at the wheel. And Austrian economists theories about "crack up booms" and business cycle theory seem to describe the real world a lot better than mainstream economist nonsense.

Also Georgist economists (based on Henry George) also have a good understanding of things (from a different angle) which explains are lot of stuff that mainstream economists are wrong about. And their disciples (Fred Folvary, Michael Hudson, Fred Harrison) have made a lot of accurate predictions about the economy and land price cycles.

Mainstream economists are the dumbest of all and never predict anything right. Keynes was a complete and utter fraud.

An example of one of Keynes dumb predictions is that humans would only work 15 hours a week due to technological progress making everyone wealthier. Of course the Georgist economists knew long ago that economic rent (primarily in the form of rising rents and land prices) would soak up the majority of productive gains of society causing people to still have to work long hours despite technological process. Henry George built on the brilliant work of economists like David Riccardo who talked about economic rent.

scorpion said:

The purpose of fiat/credit money is to act as the lifeblood of the economy, readily facilitating investment and trade. The fact that you can't stick $1000 in cash under your mattress for twenty years and retain your purchasing power isn't some "fiat scam", it's literally by design. Money is supposed to be spent or invested (deployed into the economy), not hoarded (removed from the economy).

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The part you don't understand, and we've pointed it out many times previously, is that fiat and debasement has its purpose in stealing labor. Who are the money changers, central bankers, using mathematics and compounding interest to ... not have to work! We all know. That's the game. Lifeblood of the economy? You repeat their arguments like the good little stooge they desire.

scorpion said:

Bitcoin cannot function successfully as a currency due to its deflationary nature.

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It's not a currency, for the 1000th time. Rich people don't work or invest to hold ... currency. Do they?

Australia Sucks said:

The point is that humans are not robots they have needs and wants so money hoarding due to a deflationary currency only goes so far its not an endless death spiral process.

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Exactly.

They want consumption (unnecessary) to keep the game going. This is obvious to all of us here at CiK.

Why are people increasingly getting crushed, Scorpion? It's not because of a deflationary currency. In fact, quite the opposite! The system, as I said, is about the slow, mathematical stealing of energy (BTC, real money) from people who work, do the work, provide the goods and services.

You should know this by now.

Blade Runner said:

Why are people increasingly getting crushed, Scorpion? It's not because of a deflationary currency. In fact, quite the opposite!

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Scorpion doesn't want to tackle the fact that monetary inflation always ends in total collapse of the currency and society at large on a long enough time horizon. The results are always the same from the time of Roman emperors collapsing the economy with coin clipping, to the Weimar republic, Zimbabwe, the Argentine Peso, the Venezuelan Bolivar etc. Yes if a currency collapses you can just issue a new form of fiat but you just wiped out the wealth of most of the working class and middle class in your country. The complete and utter ignorance of history that Scorpion shows is ridiculous. Also Scorpion accuses Austrian economists of bloviating but they predicted lot more things accurately; the collapse of the soviet union, the collapse of the Japanese economy in the late 1980s, the 2008 global financial crises, etc then the bloviating neo Keynesian mainstream economists ever did.

I've said pretty much everything I care to say on the topic for now. You can continue bloviating into the wind in the tradition of your beloved Austrians; no one is listening.

scorpion said:

I've said pretty much everything I care to say on the topic for now. You can continue bloviating into the wind in the tradition of your beloved Austrians; no one is listening.

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You have to at least try to respond to the fact that since we know all fiat goes to zero certainly and all world reserves meet their demise, how can you claim that they are the lifeblood of the economy? That seems like the definition of parasite, which is in fact the thesis we are putting forward. They suck the lifeblood out of the economy (as I said, work/labor) over time.