You say that people will just magically stop wanting to increase their purchasing power. Which is insanely silly. You cannot know what people will do. How many times must I point out you are no god. You do not have such foresight.
Not only that, business can expand on their own without external investment in deflation. If they are receiving revenue by pleasing consumers, they can save themselves and invest their own capital for expansion.
In inflation however this is not the case, or is much harder to accomplish. In inflation if they do not generate enough revenue, and cannot get external investment, they are forced to take out credit.
Heh, what have you read of Keynes? What have you read of Mises?
Keynes had no logical foundation from which to build his theory on. As a result he came up with “animal spirits” The same silly nonesense you subscribe to. Mises however solidified praxeology, a system that in and of itself dismanteles your whole illogical theory.
How can your theory be sound when it is illogical?
I don’t have a list handy. But whatever I have read of keynes directly (their writings) or others peoples elaboration of their ideas. Keynes is light years ahead of Mises.
Actually Keynes did not go far enough: Money is equity shares in the performance of the world economy!
If you are interested in the reading list I suggested, simply click on the blue icon that shows the number of my posts, all of my replies to you will appear in reverse date order.
Do you mind if I ask: What was the intent of this thread? Clearly, it was not to understand shortcomings in your theories. After nine pages, you revealed that 1) you reject ABCT, 2) Keynes is ahead of Mises, 3) Keynes did not go far enough because of the implications of “world equity shares”. Was your intent to actually “educate us” as to real economic theory? I thought you had a sincere interest in understanding Austrian economics which is why I participated so much in this thread. Why didn’t you lay your cards on the table at the beginning? It matters because it was a waste of time discussing your theory from the standpoint of AE, since you reject AE. I would have moved on to the next thread had I known where you were coming from earlier.
Please explain to me in terms of loaves of bread, bread making factories and pieces of gold what capital is?
We cannot talk about if we have too much capital or too little capital until you clearly tell me what capital is in terms of loaves of bread, bread making factories and pieces of gold.
Please explain to me in terms of loaves of bread, bread making factories and pieces of gold what capital is?
We cannot talk about if we have too much capital or too little capital until you clearly tell me what capital is in terms of loaves of bread, bread making factories and pieces of gold.
You can’t make bread when nobody wants to buy it. So make butter instead because people do want butter. The market doesn’t collapse and producers get returns on their investments. win-win.
That’s all of my posts, especially the really long one on artificial interest rates versus natural interest rates, CDS, MBS, and China’s empty cities.
Please explain to me in terms of loaves of bread, bread making factories and pieces of gold what capital is?
We cannot talk about if we have too much capital or too little capital until you clearly tell me what capital is in terms of loaves of bread, bread making factories and pieces of gold.
I know you see a problem. You want it fixed. You desire to help people. You sound very compassionate. Now let’s get the flaws out of that method so we can fix the problem. Wouldn’t want to make an error that repeats itself.
Mansoor, a suggestion for future threads. Please don’t re-quote the entire post. Just highlight the specific item you want to quote, then click on “quote”. You’ll have to work with it to figure it out, but it will shorten things up. Hope this helps.