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1) Concerning the detrimental effects of todays money creation:
2) It was the great economist Ludwig von Mises that compared the market economy with a dollar democracy. Every dollar spent is like a ballot paper that determines the structure of production within the economy.
3) Because of today's public-private money creation this "voting process" is distorted - just as it is in manipulated elections. Money creation produces new ballots that are added to the process unnoticed.
4) The impact of existing ballot papers of real consumers and savers is thus distorted or weakened. Due to public-private money creation, it is increasingly no longer the monetary units of consumers and savers that determine the production structure within an economy.
5) Because their preferences are decoupled from economic activity, it is only logical, that individual actors increasingly feel to be powerless playthings in a detached economic game and therefore react with criticism against an economic system that the falsely label capitalism.
6) On top of our natural reservation towards the market economy, this not well understood but unconsciously felt powerlessness gives rise to an even stronger reservation against the market order, which is turning into outright risky hatred nowadays.
7) Actual preferences of the people seldom stand in contrast to the sustainable use of natural resources. Environmental damage is often the direct result of neglected property protection of all kinds.
8) The disempowerment of consumers and savers through public-private money creation amounts to a weakening of property rights and therefore at the margin promotes "environmental sloppiness" throughout the economy.
9) Obviously within a market economy the environment is not always treated superbly. A market economy consists of real people and these people make mistakes. The beautiful thing about a market economy is though: Specific mistakes are punished and eradicated.
10) The fact that today’s market economy seems to fail here and mistakes and vices are being augmented is not an inherent malfunctioning of the market economy, but a consequences of the many distortions created by money creation.
11) It was the great poet Goethe, who already recognized that the creation of money undermines the market society:
12) "As little as the steam engines can be stifled now, as little is this possible in morality: the liveliness of trade, the noise of paper money, the swelling of debts to pay debts, all these are the tremendous elements on which a young man is currently set to live is life”.
13) Because the money creation in the history of mankind has never been greater before, market distortions and failures by the economic incentive system may have also reached its all-time high.
14) Unsurprisingly climate activist and the critics of the market economy have become ever more alarming and pressing in their efforts and their reservation has reached a climax.
15) It’s a type of hyper morality – a term originally used by the German sociologist Arnold Gehlen – that is so typical for many people nowadays.
16) But since people have no real understanding of what is going on, they are hating the players rather than the game. But urging the players to act right in rigged games, will most likely not be the answer to the problems at hand.
17) It’s way more likely that because these players are met with hostility and are seen as scapegoats, they will be triggered, unleashing a reaction-counter-reaction-cycle that will exacerbate things and lead to no positive outcome at all.
18) Eventually things might unfold just as G.K Chesterton observed quite a while ago: The modern world is in some ways far too good. It is not merely the vices that are let loose, but the virtues that are let loose and they wander more wildly, and do more terrible damage.
Hey @_ConnerBrown_ i‘ve been following your tweets quite intensely. I‘d love to get your feedback on my tweet here:)! If you have the time, thank you in advance!
👆🏻 what if great thinkers like goethe already understood the detrimental effects of money creation!
@stephanlivera @saifedean @TobiasAHuber @fabthefoxx @TheCryptoconomy @gcomxx @Ragnarly @danheld @AlexSaundersAU @BrickstringTech @MartyBent @knutsvanholm @chrisdannen
@stephanlivera @saifedean @TobiasAHuber @fabthefoxx @TheCryptoconomy @gcomxx @Ragnarly @danheld @AlexSaundersAU @BrickstringTech @MartyBent @knutsvanholm @chrisdannen
To understand the ending in this twitter thread, you need to go full circle and read this one real quick:
