Message from @RyeNorth
Discord ID: 489540583707377664
Part of the problem is that we look at the benjamins wrong
And look at work wrong.
Cultural problems
so they don't need to recover your full debt to still make money
thats not how this works.
yes it is
i give you money, you pay me back plus extra
It actually is. You're still thinking of money as a score and not as goods.
Granted EVERYTHING gets messy when you start taking loans.
they may still try and collect on that debt, but then again, you could probably take them to court
we have never really had deflation, that doesn't mean people can;t be reasonable
Real deflation hasn't been tried.
I think it has. It's called a 'hair cut' the Greeks used to it.
okay, not in modern times
They understood the problem with fiat currency
deflation isn't really a problem, nor really inflation. its the rate of change that causes problems really
So Rye if your system doesn't take into account debt then I surmise there is no intrest on savings?
its not the fall that kills you, its the sudden stop.
Not true
If you fall from high enough you will have a heart attack 😉
well then its not hte fall that killed you still lol
So, if you bought gasoline at 2.60 a gallon, and filled a 20 gallon tank. Next day, gas is worth 2.20 a gallon...
The gas in that tank is worth the same as what you'd buy at the pump
I guess that works against my point in a sense
As far as a loan goes anyway
But ideally, if you're taking a loan, you're taking that loan for something that will add value
the problem with debt is that the debt needs to be adjusted for the rate of deflation, otherwise they are asking for more money that technically are owed
Such as property.
just like debt is adjusted over time for inflation
So it's preicated on only buying things that are neccesities. not fun alowwed
what would probably happen in deflation would be the ability to get a lower interest rate
The weird thing is a negative interest rate would be extremely gameable...
depends on how rapid things deflate
its more likely that you would see very low interest rates
because how quickly would you need to be deflating to get a negative interest rate
It'd likely be fair to waive interest.
thats more likely what would happen
with perhaps the option to get the last bit waived at the end
because it would need to devalue so fast that the amount you borrow ends up deflating so rapidly that it will cover the operating and profit margins over the course of the loan to get an interest rate of 0.
or a negative one
That seems like economy crash levels of change.
Rye here trying to push shria law over here. Fuck off undercove sand nigger