Post AU2Yl7MK6FGSyfek64 by Adolfo_HODL@poa.st
 (DIR) More posts by Adolfo_HODL@poa.st
 (DIR) Post #ATZmpghSdsGMHiHmi0 by DK_Dharmaraj@poa.st
       2023-03-13T14:55:46.854607Z
       
       11 likes, 2 repeats
       
       my hot take is that 1920s style monetary woes are a Solved Problemthat's what the quiet, de facto MMT revolution (especially since 2008) means: the constraint is not monetary policy, they have all the tools they need and more to prevent anything like that from ever happening again. it's literally impossible to see either hyperinflation or Great Depression style liquidity crisis ever again, under the current systemthe tradeoff is a declining standard of living, social instability, and increasingly expensive imports. the internal domestic American economy may actually be in for something of a revival, and you probably won't see things getting a whole lot worse at the grocery store, but expect imports (everything from electronics to clothes) to get more and more expensive in dollarsRT: https://poa.st/objects/7d9fc724-3a5a-44c8-966c-59b0a6217e27
       
 (DIR) Post #ATZnf0FphOqrhTpePw by sickburnbro@poa.st
       2023-03-13T15:05:03.400202Z
       
       2 likes, 0 repeats
       
       @DK_Dharmaraj I mean, I think MMT solves a certain category of problems, but I view hyperinflation as primarily a human problem, not a technical problem. You can possibly do printing to fix a liquidity problem, but one doesn't do hyperinflation due to a liquidity problem.
       
 (DIR) Post #ATZoHSQDQBgi431baC by PunishedD@poa.st
       2023-03-13T15:12:00.508035Z
       
       3 likes, 0 repeats
       
       @sickburnbro @DK_Dharmaraj He's right that 1920s style hyperinflation was triggered by liquidity problems and features in the gold standard.  Now, we don't have gold, and we don't have reluctant printers.But really that's another way of saying we don't have any monetary restraint any more.  That idea died and was buried once central banks implemented explicit negative interest rates.
       
 (DIR) Post #ATZoj1lw67WJWJKaCu by sickburnbro@poa.st
       2023-03-13T15:16:59.238383Z
       
       2 likes, 0 repeats
       
       @PunishedD @DK_Dharmaraj the problem with hyperinflation is how you get into hyperinflation, and the way you get into hyperinflation is *essentially* everyone planning for tomorrow's inflation
       
 (DIR) Post #ATZqdtHcQqOVeVpRAG by EvilSandmich@poa.st
       2023-03-13T15:38:28.345953Z
       
       5 likes, 1 repeats
       
       @sickburnbro @DK_Dharmaraj The other side to this whole issue is obviously the GAE government issuing debt like a madman.  Even they know it's a systemic issue with their mealy mouthed pitches for trimming social security (which would do almost nothing for the issues they face).  Note that the Fed never goes before Congress and says "you know, this whole 'keep the currency stable' job would be a lot easier without you jerks printing off oceans of debt that we have to engineer to soak up, there is a limit to that you know".
       
 (DIR) Post #ATywA8PErfjFmI4uG0 by Adolfo_HODL@poa.st
       2023-03-25T14:32:22.801542Z
       
       1 likes, 0 repeats
       
       @EvilSandmich @sickburnbro @DK_Dharmaraj the way the US economic system is, the math just doesn’t balance.If they stop the massive deficit spending the system implodes.  If they keep doing it the system explodes.The real US debt is not $31T, it’s $200T when you include unfunded liabilities.Weimar had reparations, the US has healthcare and boomer retirement expenses.Ponzinomics was always going to fail.
       
 (DIR) Post #ATywA9SSx9u92aazvU by EvilSandmich@poa.st
       2023-03-25T18:08:06.190505Z
       
       2 likes, 0 repeats
       
       @Adolfo_HODL @DK_Dharmaraj @sickburnbro The German reparation story is more interesting than it lets on.  There was a paper put out a little bit ago that noted that the reparations had been paid off for quite some time by the time the hyperinflation set in, but what the reparations did do was make the old Mark a proto-global reserve currency since everyone had so many and the German economy was doing well.  However, this led to an addiction to debt/leverage in the German economy.  Every time they tried to rein it back in the system would get sick so more and more debt (money printing) was required to keep it afloat.  No…parallels to be had there, of course 😉
       
 (DIR) Post #AU2Yl7MK6FGSyfek64 by Adolfo_HODL@poa.st
       2023-03-25T14:21:52.004128Z
       
       0 likes, 0 repeats
       
       @DK_Dharmaraj @sickburnbro hard disagree.  2008 WAS a 1930’s style bank crisis, and what followed for the next 15 years WAS a 2nd Great Depression.Post 2008 industrial production COLLAPSE, credit availability to everything that isn’t safe and liquid (govt debt, govt backed MBS) COLLAPSE, life expectancy DOWN, deaths of despair UP, labor participation COLLAPSE.People will say it’s not a Great Depression because, like, there were bread lines in the 1930’s man!  It’s called EBT cards, my dude.
       
 (DIR) Post #AU2Yl8RK58rGKT0FWq by Adolfo_HODL@poa.st
       2023-03-25T14:25:57.592195Z
       
       1 likes, 0 repeats
       
       @sickburnbro @DK_Dharmaraj the federal reserve is like the wizard of Oz.  They’ve built up this myth that they are all powerful, but in reality they don’t have half the power people attribute to them.But they have narrative power, and they’ve got the entire mainstream finance class to literally worship them.  Back in the ‘20’s and ‘30’s people called it mammonism.  Worship of money and the money gods.