On Fri, Oct 13, 2017 at 3:08 PM, Alain Sepeda <alain.sep...@gmail.com>
wrote:

> it seems some histocical perspective is required to understand all is
> normal.
>
> Inflation is a recent phénomenon, and for example 19th century was veru
> deflationist.
>


What are you talking about. Inflation was an issue in even ancient times.
The spanish created a MAJOR financial crisis when the plundered the 'New
World' for silver and gold, in the 16th century. Capitalism is unstable,
*by its very nature*.


Read Marx ferkrissakes. Only smug, brainwashed fools don't.








> in fact it is not so important as purchase power get better because of
> cost reduction.
> This si what sharing economy, in fact the hidden capitalism of average and
> poor people, is doing.... reducing costs, making you richer with less money.
>
> http://www.libertylawsite.org/2017/09/29/how-the-sharing-
> economy-helps-the-middle-class-by-enlivening-capital/
>
> AI and robots are not more disruptive than horses were.
> I've heard of the luddite war in nepal agains donkeys, to keep employement
> of human donkey...
> rational becausein that traditional society there are obstacle to acquire
> capital for the lower caste.
>
> http://www.cato.org/publications/policy-analysis/
> capitalisms-assault-on-the-indian-caste-system
>
> not a surprise that communisme flourished in a locked society like Russia
> or China, in colonial zone like Indochina, in corrupted banana republic
> like Cuba, and not where it was created in Britain.
>
>
>
>
> 2017-10-13 20:15 GMT+02:00 Daniel Rocha <danieldi...@gmail.com>:
>
>> Things are not so simple, as I see it. I don't see the actual China as
>> socialist or communist, nor I see them returning to a socialist path. This
>> will become clear later, though this is a very very rough explanation.
>> Things do not really get cheap because they are more abundantly produced
>> (now I am putting my point of view in this whole thing, which is not really
>> standard) because money (gold or precious metals) or value in circulation
>> (I am not counting credit/debt here) also decreases because labor employed
>> in industry (the source) decreases accordingly. So, there is less and less
>> money to expend, credit, instead, expands, and thus debt, because it just
>> cannot be payed. Sectors of economy become glut and bubbles are created.
>>
>> Pegging money to something of value is also not good. Eventually, it is
>> not enough to keep track of the quantity of things produced, so stagflation
>> happens. Just printing money is also not good, it leads to hyperinflation.
>> A socialist system, ideally, do not have such problems because money is
>> used as grants or as a mean of accounting. This is possible because there
>> is no accumulation of money in the hand of few. But, the world is not
>> ideal, simply because all countries need to trade and the world is nearly
>> all capitalist. So, what happens is that there is a need to accumulate
>> reserves, which generally leads to stagnation. Both USSR and USA suffered
>> from this problem starting in the 70s, but USA could alleviate the problem
>> with the Volker shock, that is, letting credit abound, multiplying
>> reserves. Not so much USSR, given its ideological compromise. Straying off
>> this path led to its doom. Many countries of East Europe acquired large
>> debts with IMF, which led them, in a way or another, to bankrupt. Look for
>> the total debt of countries (not just public only, money flows indent of
>> ownership)you will see that they all of them explode starting around 1980.
>> Soon, shit will hit the fan.
>>
>> China is different case though. It could save itself by crippling the
>> economic conditions on the countryside and making people start to cities,
>> where they could provide cheap work for industries. So, Chinese leadership
>> deliberately sabotaged the most basic epithets of socialism in order to
>> stay in power.  They have been trying to improve the conditions on the
>> countryside in the last few years, though, in order to avoid rebellions in
>> the city. Wages raised and so unemployment. The labor is not so cheap
>> anymore, it's getting close to Mexico, officially.
>>
>> There has been some attempt, though not conscious, in setting something
>> similar to precious metal. Crypt currencies somehow are equivalent to mine,
>> where value comes labor employed through maintenance of servers or that
>> employed in the electric system. But, the value it seems, I am not sure if
>> it is regulated by the market, unlike with precious metals. There is a
>> certain scarcity factor that is introduce to make mining more difficult, I
>> cannot, right now see this as really equivalent to a real mine running out.
>> In any case, fluctuations make it not suitable for the people in general to
>> trade. Like with precious metal, there should be some kind of "bank notes",
>> or some similar thing to avoid fluctuations.
>>
>
>

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