@BrendanEich @ErikVoorhees productivity decreases would produce natural inflation. Is deflation good?
@samselikoff @ErikVoorhees @BrendanEich if I make money and bury it it has no effect. If the bank can't lend it at any rate it's the same.
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@wycats Since when has that been a prob? "Fog a mirror" loands for houses, pre-08, are back. For cars too.@samselikoff@ErikVoorhees -
@BrendanEich@samselikoff@ErikVoorhees response is direct and quick when demand is saturated, sluggish when shortage of demand. -
@wycats Simple govt-num chart: Fed Z1 vs. BEA GDP series: http://market-ticker.org/akcs-www?get_gallerynr=1840 …. Fake demand w/ fraudulent debt.@samselikoff@ErikVoorhees -
@wycats Required Glass-Steagall repeal, reg.cap, other malfeasance. Not exogenous "weather", not from the Sun.@samselikoff@ErikVoorhees -
@wycats Pre-08 Kyle Bass (Hayman Capital) sent PIs for fog-a-mirror mortgages, got 'em. He bought CDSes, won big.@samselikoff@ErikVoorhees -
@wycats Lack of "demand" via unsound/fraudlent debt is not the problem. Each unit of real GDP = X ergs of energy.@samselikoff@ErikVoorhees -
@BrendanEich@samselikoff@ErikVoorhees I'm not diagnosing lack of demand as a problem, just saying it causes low inflation despite money++ -
@wycats cue Austrian business cycle recitation :)@BrendanEich@samselikoff@ErikVoorhees - 5 more replies
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@wycats@ErikVoorhees@BrendanEich buried money is not an inc. in the $ supply, and def isn't the same as bankers having more $ in the bank -
@wycats@ErikVoorhees@BrendanEich plus, I'm talking equilibrium. All else equal, increase in $ supply raises overall price level, always -
@samselikoff@ErikVoorhees@BrendanEich yes, but all is not equal. -
@wycats@ErikVoorhees@BrendanEich right, but wasn't making an empirical claim. Was responding to the "low AD -> no effect" statement -
@wycats@ErikVoorhees@BrendanEich point is, new money affects resource allocation, even when AD is low
End of conversation
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