- This topic has 13 replies, 2 voices, and was last updated 2 months, 1 week ago by lost_mentat.
- Sunday, July 24th, 2022 at 05:08 #344203PMmeyourclit2Participant
As the title says, how would you stop a deflationary spiral in a BTC denominated world?
“A deflationary spiral is a downward price reaction to an economic crisis leading to lower production, lower wages, decreased demand, and still lower prices.”Sunday, July 24th, 2022 at 05:12 #344214brandonjoncas
I think we now live in a world where if we get deflation in one sector, the capital will flow somewhere else. We have so much optionality for what we can choose to do.Sunday, July 24th, 2022 at 05:12 #344207uncontrollableop
spiral? as if there is no end to it? will we fall into the abyss?
what’s wrong with a sale? nothing. prices go up and down. that’s fine. printing money doesn’t fix it. it just papers over it.
and besides, fiat is not going anywhere. they can keep printing to satisfy moronic viewpoints like this if they want. but now we have a way to opt out. and nobody can stop us.Sunday, July 24th, 2022 at 05:18 #344205Calm_Entrepreneur922
The foundational difference between a consumption based “economy” and one based on proof of work and efficiency voids this logic.Sunday, July 24th, 2022 at 05:27 #344213Restart-eth
Oh no deflation! Whatever could we do!! We’ve seen inflation run rampant for 100 years. Fuck it let’s try the other way. Clearly An uncontrolled, unregulated, unaccountable federal reserve wasn’t the issue 😂Sunday, July 24th, 2022 at 05:36 #344204DoYouEvenMonad
You haven’t actually pointed out a problem. If both wages and prices are lower, what’s the issue?Sunday, July 24th, 2022 at 05:46 #344211ColdFusion3456
Nah I wouldn’t. I would allow it to fluctuate and be untouched.Sunday, July 24th, 2022 at 06:43 #344206Petersurda
Ask the proponents of the concept of deflationary spiral, when does the spiral stop if central banks don’t exist? Logically, if it doesn’t stop, then we end up in a world without money. But conversely, that would mean that money can never appear unless central banks exist first. Which is obviously contradicted by empirical data. Therefore, if deflationary spiral exists, there must be a condition under which it stops. What is this condition? You’ll quickly realize they have no idea.Sunday, July 24th, 2022 at 07:44 #344208BTCstack3r
Deflation isn’t bad.
You ever stopped buying a new smartphone because you gotten too much value for your dollars?Sunday, July 24th, 2022 at 08:27 #344215solomonsatoshi
Beers getting cheaper is a problem for you???Sunday, July 24th, 2022 at 13:32 #344209Mr_P_Nissaurus
Stop and think.
Are you going to stop buying food because food is likely to be a bit cheaper a year from now?
Are you going to live outdoors because rents and home prices are falling?
You’ll stop wiping shit from your ass because the price of toilet paper is deflating?
Damn. Stop and think.Sunday, July 24th, 2022 at 13:36 #344210lll8lIIIllIllIIlulll
If you want to trade your resources a for a more finite thing like gold, shouldn’t that be your right? In a free country shouldnt you be free to do that? Forget everything else. Don’t you deserve the freedom to do what you want with your resources?Sunday, July 24th, 2022 at 14:15 #344212bigLeafTree
Deflation in a free market is a signal telling you that you need to save more, those saving allow bigger investments with higher productivity as you need to be now more productive to make profit.
This is well explained by the Austrian theory of economic cycle. There are lots of terrible quality youtube videos explaining it all wrong. Jesus Huerta del Soto explains it well in academic courses but unfortunately they are not in english. I haven’t seen anyone explaining it so well and this is a subject I feel the english world is behind, hope im wrong thou.Sunday, July 24th, 2022 at 14:33 #344216lost_mentat
The deflationary spiral is a myth created by the central bankers using their faulty gibberish economic models , they start with the premise that people will horde money because they want to wait to buy stuff because next year it will be 2-10% cheaper than today ! This works completely against human nature and logic . because people either buy essentials which obviously they can’t wait to buy or they buy things they really want like an iPhone , which also they don’t want to wait to buy , if consumers would be that price sensitive , most people wouldn’t be buying the latest version of stuff: So deflationary spiral isn’t real nor is it a major problem that prices go down a little , what’s not a myth is inflationary spiral, because if people know their money is burning up and becoming worthless they do rush out to spend it or exchange it for something else like gold or bitcoin , that’s real not a myth
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