Quote from: RE on Jan 23, 2024, 06:42 PM

Quote from: K-Dog on Jan 23, 2024, 06:03 PMCan fiat money work in a steady state economy?

Well, first off, the economy isn't steady state since the resources the economy depends on are depleting.  At the same time, the population that depends on those resources is still increasing.  So there is a constant negative change of less per capita available.

As you know, I'm no fan of any money at all, but under these conditions I think demurrage money probably reflects the reality the best.  A demurrage charge of perhaps 3%  would increase the velocity of money through the economy and encourage the liquidation of assets and price discovery, which is a really big problem right now.  Mispriced assets are everywhere, from real estate to stocks, bonds and commodities.

Doubtful you could get a demmurrage currency issued by any current goobermint though, so it's a moot point.

RE

Demurrage, I had to look it up.  In a sense this is how money has been in America for about 15 years. We had 0.015 % bank interest as the norm.  Now because inflation returned banks had to start paying 5% which is what it should be for an average Joe trying to save money.

In those 15 years the rich made out big.  They are richer.  In the same period average savings went nowhere.  Even at a paltry 3% in that much time savings would have doubled.  Demurrage would only be used to screw the average guy harder.

Nobody is getting rich at 5%, but it does reward savings.  In demurrage wouldn't everybody just run their credit cards to the max?  The average American would be in deep debt, yet those with the big money will find ways to keep what they have.  Big money did not have to lie dead at 0.015% for over a decade like average Joe money (mine) did.  Now my reward for having my savings pays for a meal or two a day.  Whoopie!

Taxes provide the advantage of demurrage, but the funny thing about that is rich people are very successful at avoiding taxes.  In America rich people have re-written our tax laws to screw the poor and average Joe.  The legacy of Ronald Ray-Gun.  Changing taxes to the way they were 1n 1950 would provide the same advantages.

Ideally my savings would be loaned out and the economic activity generated generates the interest.  I know the economy does not actually work that way any more.

But it is time the government take control of the money supply away from bankers.  Bankers have put way too much money into the world, making the value of what a normal person has next to worthless.

Clarify the American details for me, but in Great Britain if a person borrows from a bank, the bank simply creates the money loaned out of nothing, and as the money is paid back an equal amount of real money is destroyed EXCEPT FOR THE INTREST PAID.  Which the bank keeps.  The extra interest amounts to new money in circulation degrading the value of all the rest of the money in circulation.



Causing this.

Resulting in a new Royalty, with the old one doing just fine too.  The regular guy, who should really have a large part of the money in the system, is screwed.



The American equivalent.