Conversation

trying to describe hyperinflation through the galaxybrain take of "money is a paper representation of people's promises to each other". What happens to the promises when inflation happens? One eg is that too much money has been printed, so the promises are... "stretched"...? 🤔
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(riffing) there's some "quantity" of total debt in a community and if you print out more of the paper that represents the debt, then the same amount of debt gets spread over more paper... meaning each piece of paper now represents a smaller "fraction" of debt...
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This describes something like a cigarette economy in a prison. A bond-based fiat sovereign currency isn’t really “people’s promises to each other”. It’s national central banks’ promises to bond holders = shareholders in the idea of that nation.
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that can also kinda be framed as promises, right? I'm forcing it yea but just for fun– "we the representatives of the people of Poopmojistan promise keep the 💩 flag flying high and mighty. Would you like to buy some bonds?"
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It creates room for complexities like QE that allow distortion that breaks the metaphor too much. Like in the US inflation is low but stocks are booming because QE allows the “inflation” to be focused like a laser where they profit from it.