@Samyukth @musafir @shinjini @TheDonkeySays@mastodon.social @IshaKaushik@mastodon.social @Poonamsharma @NSure @Iwalkalone @KayKap @VivekT @ashwin @milcom@mastodon.social @shirishag75 @Pranavgupta @Vishsai @Battrebeet but today no "economist" would decry central banking or support a gold standard 4/

@Samyukth @musafir @shinjini @TheDonkeySays@mastodon.social @IshaKaushik@mastodon.social @Poonamsharma @NSure @Iwalkalone @KayKap @VivekT @ashwin @milcom@mastodon.social @shirishag75 @Pranavgupta @Vishsai @Battrebeet the best we can do is keep publishing the truth and hope at least the "intelligent" see the light 5/

@Samyukth @musafir @shinjini @TheDonkeySays@mastodon.social @IshaKaushik@mastodon.social @Poonamsharma @NSure @Iwalkalone @KayKap @VivekT @ashwin @milcom@mastodon.social @shirishag75 @Pranavgupta @Vishsai @Battrebeet unfortunately or fortunately anybody with a degree in economics is mostly a lost cause in this /END

@ilr

agreed, although I didn't write about the savings aspect still wrote a short one on

https://flossexperiences.wordpress.com/2019/12/08/rape-aftermath-gst/

@Samyukth @musafir @shinjini @TheDonkeySays @IshaKaushik @Poonamsharma @NSure @Iwalkalone @KayKap @VivekT @ashwin @milcom @Pranavgupta @Vishsai @Battrebeet

@Samyukth @musafir @shinjini @TheDonkeySays@mastodon.social @IshaKaushik@mastodon.social @Poonamsharma @NSure @Iwalkalone @KayKap @VivekT @ashwin @milcom@mastodon.social @shirishag75 @Pranavgupta @Vishsai @Battrebeet we’ve retooted some of our recent stuff to the top of our profile for the newbies here.

@ilr Thanks for that. Will check out your recent stuff.
Isn't a falling savings rate, for quite a while now, one of the fundamental reasons for the headwinds that we have been facing? In fact, isn't this one of the reasons that any interest rate reduction by the RBI hasn't really translated into a lending rate drop?

@musafir @shinjini @TheDonkeySays @IshaKaushik @Poonamsharma @NSure @Iwalkalone @KayKap @VivekT @ashwin @milcom @shirishag75 @Pranavgupta @Vishsai @Battrebeet

@Samyukth @musafir the falling savings rate is a natural consequence of inflation.
Lending rates etc are totally artificial when ur cb is setting an interest rate and does not reflect the supply and demand of savings and investment.
Theres a lot to disassemble in your q, maybe a good starting point for understanding the big picture is this lecture:

https://youtu.be/SAN5CKbZnD0

(Removed the other handles just to get more characters into this toot)

@ilr Thanks, will listen to it and get back to this thread.

@musafir

@ilr This is so different from the economics that I am used to that it is quite tough to comprehend the implications- might have to listen to this again.

Top of mind questions :-
1. Basically most economies today are Fiat Economies in some shape, right? Incl India.
2. Any economy that runs a Fiscal Deficit, by definition, will be a Fiat Economy, correct? Since that delta needs to come from either debt or printing?
...1/2

@musafir

@ilr
...
3. Fiat Economies will typically tend to grow faster than Natural Economies, right?
4. Dropping Saving is then a trap of sorts since that propels Debt in the Economy. But is that an outcome or is that an input?
5. What are the implications for us in your opinion?

2/2
@musafir

@Samyukth @musafir Answers to qs 3 and 4 : Fiat economies experience boom and bust cycles linked to the debt and credit cycles. You get an artificial boom fueled by easy money and then crises that knock you out, last example being the 2008 crisis.

5. The implocations are exactly what hulsmann pointed out and we can see it today:

Increasing inequality : see https://wtfhappenedin1971.com/

Centralisation and tyranny
2/

@Samyukth @musafir Finally, cultural decay and loss of low time preference activities that lead to great capital accumulation - this is why we don’t build things like hampi anymore, and this is why everything is so political in our societies.

End of reply

@Samyukth @musafir Yes this is Austrian economics, otherwise just called "economics" until Keynes came around and ruined things after the *second* great depression.

See this lecture about the *first* great depression which sorted out pretty quickly:

https://www.youtube.com/watch?v=czcUmnsprQI

Answers to q1 and 2 : yes, all economies are today fiat money economies

1/

@Samyukth @ilr @musafir @shinjini @TheDonkeySays @IshaKaushik @Poonamsharma @NSure @Iwalkalone @KayKap @VivekT @ashwin @milcom @Pranavgupta @Vishsai @Battrebeet

I do hope we do get updates like #hdfcbankdown as it happened earlier last week.

https://economictimes.indiatimes.com/industry/banking/finance/banking/rbi-investigating-net-banking-breakdown-at-hdfc-bank/articleshow/72386365.cms

@Samyukth @ilr @musafir @shinjini @TheDonkeySays @IshaKaushik @Poonamsharma @NSure @Iwalkalone @KayKap @VivekT
@ashwin @milcom @Pranavgupta @Vishsai @Battrebeet

there is also this -

https://www.invidio.us/watch?v=h5Uj0tMDVgs