Hawker
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May 19, 2013, 03:47:39 PM |
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Yes - used at the right time, heroin is fine. Heroin was made as a therapeutic drug and when its needed, its fine to use it. And the same is true of inflation. If its needed, as it is in Japan, then use it. When the need passes, stop.
I can't see why you find that hard to accept.
Except that the governments keep doctor shopping until they find one that will prescribe them infinite amounts of heroin, and the minute one starts to talk about lowering the dose, they fire him and get another. And God forbid a doctor comes along and suggests that Heroin isn't needed at all, that pain is natural, and it tells us when we're doing damage to our body, and we shouldn't just keep using drugs to mask the symptoms. That doctor gets laughed right out of the office. Hmmm. I have no idea what point you are trying to make.
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myrkul
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May 19, 2013, 03:52:59 PM |
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Yes - used at the right time, heroin is fine. Heroin was made as a therapeutic drug and when its needed, its fine to use it. And the same is true of inflation. If its needed, as it is in Japan, then use it. When the need passes, stop.
I can't see why you find that hard to accept.
Except that the governments keep doctor shopping until they find one that will prescribe them infinite amounts of heroin, and the minute one starts to talk about lowering the dose, they fire him and get another. And God forbid a doctor comes along and suggests that Heroin isn't needed at all, that pain is natural, and it tells us when we're doing damage to our body, and we shouldn't just keep using drugs to mask the symptoms. That doctor gets laughed right out of the office. Hmmm. I have no idea what point you are trying to make. http://en.wikipedia.org/wiki/Austrian_School
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Hawker
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May 19, 2013, 04:01:21 PM |
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Yes - used at the right time, heroin is fine. Heroin was made as a therapeutic drug and when its needed, its fine to use it. And the same is true of inflation. If its needed, as it is in Japan, then use it. When the need passes, stop.
I can't see why you find that hard to accept.
Except that the governments keep doctor shopping until they find one that will prescribe them infinite amounts of heroin, and the minute one starts to talk about lowering the dose, they fire him and get another. And God forbid a doctor comes along and suggests that Heroin isn't needed at all, that pain is natural, and it tells us when we're doing damage to our body, and we shouldn't just keep using drugs to mask the symptoms. That doctor gets laughed right out of the office. Hmmm. I have no idea what point you are trying to make. http://en.wikipedia.org/wiki/Austrian_SchoolAh, that old chestnut. "Hi I have an idea that is so bad no-one will try it and then I will spend forever crying that everyone ignores me."
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myrkul
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May 19, 2013, 04:14:31 PM |
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Yes - used at the right time, heroin is fine. Heroin was made as a therapeutic drug and when its needed, its fine to use it. And the same is true of inflation. If its needed, as it is in Japan, then use it. When the need passes, stop.
I can't see why you find that hard to accept.
Except that the governments keep doctor shopping until they find one that will prescribe them infinite amounts of heroin, and the minute one starts to talk about lowering the dose, they fire him and get another. And God forbid a doctor comes along and suggests that Heroin isn't needed at all, that pain is natural, and it tells us when we're doing damage to our body, and we shouldn't just keep using drugs to mask the symptoms. That doctor gets laughed right out of the office. Hmmm. I have no idea what point you are trying to make. http://en.wikipedia.org/wiki/Austrian_SchoolAh, that old chestnut. "Hi I have an idea that is so bad no-one will try it and then I will spend forever crying that everyone ignores me." Of course the junky is going to reject the doctor who tells him he doesn't need the drug.
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Hawker
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May 19, 2013, 04:18:08 PM |
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Yes - used at the right time, heroin is fine. Heroin was made as a therapeutic drug and when its needed, its fine to use it. And the same is true of inflation. If its needed, as it is in Japan, then use it. When the need passes, stop.
I can't see why you find that hard to accept.
Except that the governments keep doctor shopping until they find one that will prescribe them infinite amounts of heroin, and the minute one starts to talk about lowering the dose, they fire him and get another. And God forbid a doctor comes along and suggests that Heroin isn't needed at all, that pain is natural, and it tells us when we're doing damage to our body, and we shouldn't just keep using drugs to mask the symptoms. That doctor gets laughed right out of the office. Hmmm. I have no idea what point you are trying to make. http://en.wikipedia.org/wiki/Austrian_SchoolAh, that old chestnut. "Hi I have an idea that is so bad no-one will try it and then I will spend forever crying that everyone ignores me." Of course the junky is going to reject the doctor who tells him he doesn't need the drug. Again, I don't get the point you are making. The Japanese are able to borrow money for less than their inflation rate. They don't have a problem with addiction to inflation - they have a problem with lack of growth and inflation is the correct way for them to get out of the situation they are in. There is no junkie nor doctor in that scenario. Just choices that can be made.
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myrkul
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May 19, 2013, 04:23:44 PM |
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They don't have a problem with addiction to inflation - they have a problem with lack of growth and inflation is the correct way for them to get out of the situation they are in. Inflation will fix their demographic issues? Their oversupply? I seem to have used the wrong product to compare inflation to: ![](https://ip.bitcointalk.org/?u=http%3A%2F%2Fwww.diabetesmine.com%2Fwp-content%2Fuploads%2F2012%2F09%2FSnake-Oil.jpg&t=665&c=jKDrsLFN2nsvKw)
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Hawker
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May 19, 2013, 04:28:01 PM |
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They don't have a problem with addiction to inflation - they have a problem with lack of growth and inflation is the correct way for them to get out of the situation they are in. Inflation will fix their demographic issues? Their oversupply? I seem to have used the wrong product to compare inflation to: That's too much to hope for. But it will help their deflation problem.
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myrkul
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May 19, 2013, 04:31:32 PM |
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They don't have a problem with addiction to inflation - they have a problem with lack of growth and inflation is the correct way for them to get out of the situation they are in. Inflation will fix their demographic issues? Their oversupply? I seem to have used the wrong product to compare inflation to: That's too much to hope for. But it will help their deflation problem. Let me say this in no uncertain terms: Deflation is not a problem. It is a symptom. Treating the symptom does not treat the problem.
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Its About Sharing
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May 19, 2013, 04:34:13 PM |
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They don't have a problem with addiction to inflation - they have a problem with lack of growth and inflation is the correct way for them to get out of the situation they are in. Inflation will fix their demographic issues? Their oversupply? I seem to have used the wrong product to compare inflation to: That's too much to hope for. But it will help their deflation problem. Let me say this in no uncertain terms: Deflation is not a problem. It is a symptom. Treating the symptom does not treat the problem. And in an instant Hawker started to question what he believed in...
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BTC = Black Swan. BTC = Antifragile - "Some things benefit from shocks; they thrive and grow when exposed to volatility, randomness, disorder, and stressors and love adventure, risk, and uncertainty. Robust is not the opposite of fragile.
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Hawker
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May 19, 2013, 04:35:00 PM |
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They don't have a problem with addiction to inflation - they have a problem with lack of growth and inflation is the correct way for them to get out of the situation they are in. Inflation will fix their demographic issues? Their oversupply? I seem to have used the wrong product to compare inflation to: That's too much to hope for. But it will help their deflation problem. Let me say this in no uncertain terms: Deflation is not a problem. It is a symptom. Treating the symptom does not treat the problem. That's your opinion. The Japanese have a different view - that the persistence of deflation is harmful to their economy. I think its worth at least 1 country in the world to try inflating their way out of that. The experiment is 6 months old - it will be a couple of years before we can say if it was a good idea.
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myrkul
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May 19, 2013, 04:38:53 PM |
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The Japanese have a different view - that the persistence of deflation is harmful to their economy. For centuries, people persisted in the belief that the sun orbited around the earth. Going so far, in fact, as to construct elaborate mathematical models to support that view. Didn't make it true.
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Lethn
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May 19, 2013, 04:46:52 PM |
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That's your opinion. The Japanese have a different view - that the persistence of deflation is harmful to their economy. I think its worth at least 1 country in the world to try inflating their way out of that. The experiment is 6 months old - it will be a couple of years before we can say if it was a good idea. You're wrong, neo-keynesians have the point of view that deflation is harmful to the economy, like with most self-appointed leaders around the globe speaking for countries I'm sure the Japanese people themselves will have very different opinions to that school of economic thought to what their leaders say, countries and people tend not to have one singular opinion about an idea even if they tend to believe in the same thing.
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myrkul
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May 19, 2013, 05:02:24 PM |
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And in an instant Hawker started to question what he believed in...
Heh. Unlikely. He's far too well brainwashed for that.
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Hawker
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May 19, 2013, 05:18:54 PM |
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And in an instant Hawker started to question what he believed in...
Heh. Unlikely. He's far too well brainwashed for that. I'm happy to wait a couple of years and see how things work out for Abenomics. Its you guys are all in a tizzying saying it can't work.
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becoin (OP)
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May 19, 2013, 05:20:14 PM |
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Ah, that old chestnut. It is not any school. It is the common sense. It is old as the world! Deflation is the natural cure for inflation. Deflation is caused by bursting of bubbles. Bubbles are caused by money printing. So if you don't want deflation stop printing money and stop encouraging speculative behavior of large masses of people. Ordinary people are penalized if they save their money in a bank so they go elsewhere creating bubbles in housing and stock market. Without savings there is no capital. Without capital there is no capitalism. Simple as that. ![](https://ip.bitcointalk.org/?u=https%3A%2F%2Fi.imgur.com%2FkFIWDbz.png&t=665&c=tRqA5MftqpNVhg)
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Hawker
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May 19, 2013, 05:24:07 PM |
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Ah, that old chestnut. It is not any school. It is the common sense. It is old as the world! Deflation is the natural cure for inflation. Deflation is caused by bursting of bubbles. Bubbles are caused by money printing. So if you don't want deflation stop printing money and stop encouraging speculative behavior of large masses of people. Ordinary people are penalized if they save their money in a bank so they go elsewhere creating bubbles in housing and stock market. Without savings there is no capital. Without capital there is no capitalism. Simple as that. The problem with that argument is the long periods of deflation in the 1800s when the currency was gold.
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notme
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May 19, 2013, 05:26:50 PM |
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The Japanese are able to borrow money for less than their inflation rate.
This is the root of your difference in opinion. You believe there is infinite demand for government debt. Remember, the bond markets are still markets. If demand dries up, interest rates will rise. Unless the central banks can increase demand for bonds without paying more interest, they will be in trouble. Watch Japan... the 5 year interest rate jumped up 38.9% this month, most of it in the past week. This is after then yen fell roughly 30% in the past 6 months. Demand is leaving bonds, and unless they tighten and strengthen the yen in the near term the long term result will be higher interest and thus deflationary pressure as more profits are needed to service the debt.
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Hawker
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May 19, 2013, 05:33:27 PM |
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The Japanese are able to borrow money for less than their inflation rate.
This is the root of your difference in opinion. You believe there is infinite demand for government debt. Remember, the bond markets are still markets. If demand dries up, interest rates will rise. Unless the central banks can increase demand for bonds without paying more interest, they will be in trouble. Watch Japan... the 5 year interest rate jumped up 38.9% this month, most of it in the past week. This is after then yen fell roughly 30% in the past 6 months. Demand is leaving bonds, and unless they tighten and strengthen the yen in the near term the long term result will be higher interest and thus deflationary pressure as more profits are needed to service the debt. That is a good thing! The Japanese state will be forced by the markets to borrow less and the Japanese consumers will be encouraged to spend more. That's exactly what you would hope to see happen.
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becoin (OP)
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May 19, 2013, 05:37:57 PM |
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The problem with that argument is the long periods of deflation in the 1800s when the currency was gold. There is no problem at all. You have read something somewhere but failed to understand what it is... The supply of gold is not even throughout the humankind history. One such period, when there was an increased supply of gold and silver, was the period when Spanish conquered Latin America and English successfully liberated North America and Australia from their native inhabitants. In longer period gold and silver supply is always steady because it naturally balances itself. Read, buddy! Read! You have a lot to learn.
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myrkul
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May 19, 2013, 05:38:51 PM |
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The problem with that argument is the long periods of deflation in the 1800s when the currency was gold.
Still seeing deflation as a necessarily bad thing, huh?
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