Today’s letter is an extraordinarily important one for all my fellow Bitcoiners. Because today’s letter debunks one of the most stubborn myths about money, namely the deflationary crash.
Of course Argentarius lived too early to be confronted with the Keynesian myth spun around the Great Depression, so he can not directly counter their lame “arguments”.
But he rather brilliantly takes away the ground these “arguments” try to stand on to this day.
In this lecture Lansburgh will show us, how circulation of money is controlled by economic activity and not the other way round and how interest is the self regulating driver of economic activity.
Viewed from this perspective it is clear of course, how misguided central bank policies are that lower the interest when they want to stimulate economic activity.
Lower interest to stimulate the economy is the equivalent of giving a patient who just got his leg ripped of by a shark adrenaline and cocaine to stimulate him.
Of course for a while it will seem to work, but in the end the therapy must prove fatal, if the doctors don’t come to their sense.
The same is true for the Euro-Dollar system, with it’s negative interest rates today. All this cheap money can ever stimulate is drug induced pseudo-economic activity, while at the same time, the real economy is bleeding to death.
And with this gruesome picture in your heads… to the reading…