Not a crypto fan but I'm beginning to see that our entire economy is proving impossible without continuous manipulation by the fed
That’s by design and is called the “Invisible Hands”.
Algorithmic stablecoins are provably impossible without continuous funding
41–50 of 264 posts
Re: Algorithmic stablecoins are provably impossible without continuous funding
#42Let me share my theory that the economy is impossible or paradoxical and that the American dream is impossible and that everything is built on by faith. To buy a loaf of bread, the price needs to pay for the wheat, ovens, energy and the employee costs. This relationship is recursion. The staff of the bread company need to afford bread of their own and shelter and energy and transportation. Everyone is thereby support…
fun fact, the sum across x_n of x_{n+1}=1/2*x_n, with x_0=1 is the fixed value 2. Don't blame math for your inability to understand that trade creates value.
Re: Algorithmic stablecoins are provably impossible without continuous funding
#43Not a crypto fan but I'm beginning to see that our entire economy is proving impossible without continuous manipulation by the fed
Well duh, that is the whole point of the fed - tweaking the dials to smooth out the peaks and troughs. Sometimes that doesn’t work, or works only after the fact, but the last 70 years or so has been fairly smooth sailing compared to what came before.
[deleted]
Re: Algorithmic stablecoins are provably impossible without continuous funding
#44Not a crypto fan but I'm beginning to see that our entire economy is proving impossible without continuous manipulation by the fed
It’s a feature, not a bug
Re: Algorithmic stablecoins are provably impossible without continuous funding
#45Not a crypto fan but I'm beginning to see that our entire economy is proving impossible without continuous manipulation by the fed
Thomas piketty already discovered that the growth rate of the economy must be higher than the rate of return on capital. Not all returns actually go to 0% due to monopolies, etc. This means those returns have to be taken from someone else and forcibly growing the economy is just a bandaid so people don't lose what they already have to the rich owners of monopolies.
Re: Algorithmic stablecoins are provably impossible without continuous funding
#46This doesn't go far enough. The only thing that maintains the value of any asset (or currency) is the collective belief in that asset or currency. Put another way: there is an inescapable component of trust in every asset. Crypto in any form doesn't solve the trust problem other than a very narrow slice because as soon as you interact with anything outside of the blockchain, you're adding trust. Even on the blockchai…
> The only thing that maintains the value of any asset (or currency) is the collective belief in that asset or currency. Put another way: there is an inescapable component of trust in every asset
Most non currency assets are cash flow generating financial instruments.
If analysts don't believe a company is worth a dime, it can show them wrong by being profitable and paying dividends.
Edit: I think my point is - even if no one else believes in a stock or bond, you can still profit by "being right". The same is not true for currencies.
Re: Algorithmic stablecoins are provably impossible without continuous funding
#47Earlier quoted context omitted.
> Not a crypto fan but I'm beginning to see that our entire economy is proving impossible without continuous manipulation by the fed Just like driving a car proves impossible without continuous manipulation by its driver.
cue autonomous vehicles. Seriously though this is a very wrong analogy. The economy is more like an ecosystem where individuals interact with themselves & the environment. It doesn't need continuous manipulation. In fact it tends to distort than aid.
The economy is not like an ecosystem since there is no reciprocation. Money flows in one direction only, toward the top. I find it particularly frustrating that people don't see the economic distortion caused by monopolies in the private economy, they think it must be the government's doing when it tries to undo some of the harm caused by them.
Re: Algorithmic stablecoins are provably impossible without continuous funding
#48Earlier quoted context omitted.
Every ecosystem needs outside input of energy, such as sunlight.
The economy gathers outside energy as the production of value, which is what the vast majority of companies do, and some of it disappears out the other end as consumption of goods with value. It's perfectly true that the system is perfectly capable of running alone without any external stimulus applies. The economy will keep being the economy no matter how much you tamper with it. The main problem people have with th…
That isn't working fine. Any properly working economy is able to represent negative yields and thereby solve the wealth accumulation and unemployment problem.
The idea that your wealth ought to grow exponentially regardless of whether the economy itself is growing and how much you contributed to the economy is ridiculous. What did people expect from this arrangement other than accumulation of wealth at the top?
By the way, the economy won't work, it will collapse at some point, because 3% growth over two thousand years would imply colonizing entire galaxies. People think they have a birthright to eternal 3% growth without even being aware of what it means to grow exponentially for that long.
Re: Algorithmic stablecoins are provably impossible without continuous funding
#49Earlier quoted context omitted.
Well duh, that is the whole point of the fed - tweaking the dials to smooth out the peaks and troughs. Sometimes that doesn’t work, or works only after the fact, but the last 70 years or so has been fairly smooth sailing compared to what came before.
The worst is when it works to smoothen out the peaks but the cost is silently screwing over poor people. So everyone at the top can pat themselves on the back, and people in the middle start blaming capitalism.
The people in the middle never blame capitalism because they want to join the upper ranks and screw poor people over.
Re: Algorithmic stablecoins are provably impossible without continuous funding
#50Earlier quoted context omitted.
cue autonomous vehicles. Seriously though this is a very wrong analogy. The economy is more like an ecosystem where individuals interact with themselves & the environment. It doesn't need continuous manipulation. In fact it tends to distort than aid.
The economy is not like an ecosystem since there is no reciprocation. Money flows in one direction only, toward the top. I find it particularly frustrating that people don't see the economic distortion caused by monopolies in the private economy, they think it must be the government's doing when it tries to undo some of the harm caused by them.
> Money flows in one direction only, toward the top.
This, taken literally, is clearly false (the wealthy do in fact buy things and pay for services / employees).
So, as you don't mean it literally, what do you mean?