I’ve listened to George and I have heard that theory. I don’t agree.
In a situation where base money CAN be created, I agree. The temptation in crisis is knee jerk and very much a “bail out our buddies” reaction. But if those bail out didn’t come, things would settle and move forward. The entities that made bad decisions flushed out. The new ones likely not to make the same mistakes again and probably would make improvements to ops / goods / services etc.
Also, if cost of capital is artificially low, it allows a lot of fluffy junk to exist in the economy. Creating systemic weaknesses. I think a market setting the proper cost of capital (and no ability to create more base money as a backdrop) would reduce crisis’ ten fold. It would be a more efficient and serious economy. You play the game different if you only have one life…
BTC_P2P /
npub1an…fze63
2023-06-15 08:15:38
in reply to nevent1q…ujjw
Author Public Key
npub1an6xs9jt6apmw45rmvu8pnspewdp6juwcgp76fk72ruky4dmcadqwfze63Published at
2023-06-15 08:15:38Event JSON
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