Before reading the article I thought this was about trump floating 50 year mortgages. Same kind of issue though, I think.
My naive theory is that the fed targeting N > 0 yearly inflation is _horrendous_ for society. It forces pricing schemes like the article mentions. It encourages cheap, easy money sources which is often at odds with what is best for society. Rent seeking seems to be a hallmark of this system.
On the other end, it gives asset holders a way to grow their share of the pie while doing almost nothing. The more money we print, the less everyone else has (relatively), and the more valuable assets become simply because we printed money - not because any value was created. Our monetary policy is to constantly devalue labor.
To put it succinctly: We’ve made enormous technological strides and people still have to work 8 hours a day and worry if they’ll end up on the streets someday.
Other systems exist (https://en.wikipedia.org/wiki/Social_credit), yet I see almost 0 mainstream discussion of this issue much less alternatives. My conspiracy theory is of course the billionaires don’t want to change things (they’d likely be reduced to millionaires), so anyone who gets close to talking about this is ignored or canceled.
My naive theory is that the fed targeting N > 0 yearly inflation is _horrendous_ for society. It forces pricing schemes like the article mentions. It encourages cheap, easy money sources which is often at odds with what is best for society. Rent seeking seems to be a hallmark of this system.
On the other end, it gives asset holders a way to grow their share of the pie while doing almost nothing. The more money we print, the less everyone else has (relatively), and the more valuable assets become simply because we printed money - not because any value was created. Our monetary policy is to constantly devalue labor.
To put it succinctly: We’ve made enormous technological strides and people still have to work 8 hours a day and worry if they’ll end up on the streets someday.
Other systems exist (https://en.wikipedia.org/wiki/Social_credit), yet I see almost 0 mainstream discussion of this issue much less alternatives. My conspiracy theory is of course the billionaires don’t want to change things (they’d likely be reduced to millionaires), so anyone who gets close to talking about this is ignored or canceled.