Comments on: FOMO Unbound! Did we just miss the Bitcoin bottom? https://bombthrower.com/fomo-unbound-did-we-just-miss-the-bitcoin-bottom/ Blowing up the Clown World. Wed, 19 Oct 2022 15:37:45 +0000 hourly 1 https://wordpress.org/?v=7.0.3 By: David Barnett https://bombthrower.com/fomo-unbound-did-we-just-miss-the-bitcoin-bottom/#comment-1819 Thu, 30 May 2019 21:32:34 +0000 https://bombthrower.com/?p=625#comment-1819 It is said that “bad money drives out the good”. That is, people hoard the better currency and spend into circulation the worse currency. If you widen the concept of currency to anything tradable (i.e. include goods and services), you can expect people to want to exchange goods that they don’t need (because they have manufactured them for sale, say) for good currency. Conversely they will be inhibited from buying goods with good currency unless they really need those goods at the time.

The Keynesian argument for inflation, promulgated by governments and their banker lackeys, is that without it, people don’t spend enough to keep everyone working. But perhaps the inflation policy is why we are awash in mass produced bric-a-brac.

We are in a world of material abundance where most of life’s material necessities can be made for everyone with just a few humans working to do it. That ought to lead to severe price deflation – something that is inhibited by the expectation of “stable” or “inflating” prices. How do we change the psychology so as to avoid a Keynesian depression in the short term?

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