Topic: Were the Keynesians wrong? - page 4. (Read 5582 times)

It's not about his "authority", but about his arguments.
I guess that Nobel Prize Hayek is also not taken seriously then ?


Of course gold and silver was used as money ! 

The "authority" you talk about was just a certification of the amount and purity of the coins.

http://www.jmbullion.com/guide/history/

von Mises?  Hahaha.  Is that a joke?  Nobody in economics takes him seriously

So is sterling pound.  So what?  What does that prove?  That Silver was used for coins once?  You think you can walk into a shop in London back the old days and pay with a silver dollar?  The money aspect doesn't come from the metal it comes from the authority of the issuer

Demand and supply balance. This world is too unstable still

You should maybe read this also.

Or this .

Maybe you need to read von Mises "the theory of money and credit" ?


Do you know where "dollar" comes from ?  It's a mass unit of gold.

Edit: I'm wrong, it was an amount of silver: 24 grams.

Krugman never said anything about Keynes and Bitcoin.  He said he's not convinced it can be a stable store of value and that's not what you want as a working currency.  You want stability not volatility.  Nothing to do with Keynes just common sense

Gold is an example and the example, you're just choosing to ignore it or don't know what deflation and inflation actually is, the state always chose gold in the end, one perfect example was the byzantine empire having a gold coin minted and they lasted for almost 1000 years, even in the U.S and the UK silver was used as a currency for quite some time but was replaced by paper because it wasn't as easy to for the state to control the currency supply.

Amazes me how blatantly people choose to ignore historical fact when it doesn't fit into their political agendas, go and fucking learn what deflation and inflation actually is instead of just dismissing people who know more than you.

http://en.wikipedia.org/wiki/Byzantine_coinage

Oh and here's a definition of deflation for people willing to read since I know you won't bother looking it up.

http://www.investopedia.com/terms/d/deflation.asp


I highlighted the important bit for you.

This one line is exactly what deflation is but the rest is pretty much the kind of neo-keynesian crap you're trying to peddle, precious metals are precious, very rare. So that is why everything becomes far cheaper in that currency as opposed to paper which is printed in ridiculous amounts, it is also why cryptocurrencies are worth much more than the dollar.

Inflation and deflation are almost always a result of changes in the money supply, there are of course normal trading patterns that happen because of regular trading but these always get exaggerated if it's someone messing with how much currency is in circuation. A perfect recent example would be the situation with mt.gox and butterfly labs, you also have silkroad online, those are all cases where a large amount of currency has exited circulation or been dumped onto the markets at once and that is what causes such dramatic changes in prices and also peoples spending habits, the inflation is scaring the crap out of everyone and causing everyone to dump their paper for something of value.

Tell that to the Keynes mouthpiece, Paul Krugman.

Keynesianism has nothing to mean to BTC price since Keynesian doctrine relates to macroeconomics (economic policy). So far, BTC is going down since more players/parties adopted it - as per the old Exchange saying: buy on rumors, sell on confirmed news - also, i guess that the bitstamp hack add some burning fuel to the smouldering ashes.

Wrong.  Keynes is not the prevalent "school" in academia.  Its probably neo classical

Keynes did public service and was an astute investor.  His theories comes from market experience and public service experience.  IOW "real life experience" not academic theories.  He only started to get popular again recently after the 2008 crash.  His main thing is using fiscal policy and focus on unemployment numbers

The govt has no reason to "save money"  when they can just "print money".  You are totally confusing household economics and macro and blaming everything on Keynes.  Since 80's there have been no Keynesian influence on policy.  It was more Friedman

(Red colorization mine.)

A debt is profitable for its creditor. Ought one not pursue profit?

Keynes is the troll of economic theorists used by universities and interested parties to add theoretical justification for their parasitism.

Keynes was probably terrible at saving money. Marx was for a fact. I think Keynes appeals to people who are suseptible for lazy quick fixes in general. We live in a different world now as well and so I think something as simple as "save money for future consumption and investment" is a principle we all need to adhere to a lot more now. Society might grind along at a slower pace, but it will probably have to since things are growing in complexity globally.

Managing a global economy is a much larger pipe dream than managing farmers in Siberia was during the Soviet regime. So much more impossible. Governments and citizens alike will have to become more coherent going forward if anything is going to get done.

1. It is state, money, possession, and tribe which begets that.

2‒3. Deflation is the reduction of “supply.” A precious stone or metal has a “supply” that nets increase (at an ever decreasing rate).

4. Here, a user profile informs visitors of its user’s “[l]ast [a]ctive” time.

Please give example of when deflationary money has been used for a long time.  And gold is not an example.  Gold was used for coinage but the money is not denominated in gold but instead whatever the Kings money was

Yeah, making a hypothetical statement doesn't mean it's correct, we've heard this argument a thousand times, you're also forgetting the fact that inflation is simply going to force people to work for longer and for less pay because everything becomes so expensive. Also, if deflationary currencies are so horrible and bad, why were they used for so long? Why is it that inflationary currencies have only recently come into existence and been used widely?

Hmmm doesn't seem to me like you're really going to bother answering the question but what the hell I'll ask anyway.

(See my forum signature.)

Spending and inflation/deflation aren't really related to each other, the only reason spending would increase because of inflation would be if people are being forced to spend because their wealth is being destroyed which is what inflation actually does, especially hyperiflation and that is exactly what is happening to paper currency.

Whenever I get any paper money of my own I can tell you I immediately dump mine for Bitcoin just because I know every second I hold the stuff it's getting devalued and if I want to have some kind of long term purchasing power I need to get rid of it. The only time I use paper is in order to pay someone else who only takes that or for bills etc. that need to be paid.

No you are just applying the concept to the wrong context.