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RE: Why Everyone Should Keep Their Savings in Bitcoin or Gold

in #threespeak5 years ago

I will add one more thing, Keyneysian thought is not completely wrong. There are situations where a liquidity trap could stop growth. I guess no school of thought is completely wrong. Where I disagree with the Keynesians is that the sluggish growth in the West now results more from fundamentals than any monetary market condition requiring any Keynesian methods to fix. Western populations are aging and the work forces in Western countries are shrinking. Rapid technological advancement is causing a mismatch between existing skills and skills in demand. That results in high structural unemployment.

Besides, there is little in the Keynesian toolbox that is able to boost the economy now. Open market operations, that is, central banks purchasing financial assets with money they create from thin air only transfers wealth to the already wealthy without increasing the purchasing power of anyone occupying the bottom rungs of the economic ladder.

For decades, the financial system has been digging its own grave and many an economist from both the left and the right has criticized it. Because of the mess the financial system is, there is ample reason to believe in the potential of the crypto space and HODL. :)

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