Nostr Web Client

Debt issuance does not create growth. It reallocates purchasing power forward in time.

Real growth comes from productivity gains, better coordination of capital, labour, and technology. Under sound money, growth shows up as falling prices and rising real purchasing power.

Construction sites are not proof of growth. Malinvestment builds things too, until the cash flows fail and the debt must be rolled, inflated away, or defaulted on.

Issuance expands claims, not resources. Eventually the claims exceed what the real economy can support. That is the bottleneck you’re describing, and it’s caused by debt, not fixed supply.

S!ayer 1w ago 💬 2

yes, we call that inflation.

Purchasing power fluctuates based on "productivity gains, better coordination of capital, labour, and technology. " - China for one artificially keeps the RMB low in order to oversupply, yet they could and can tenfold their purchasing power. These are all systems.

Debt issuance does and has created growth, please stop being retarded. Maybe you don't understand what I am saying, or what a debt issuance (bond usually, but maybe a reserve asset, placement or other type) that earns a YIELD based of the "productivity gains, better coordination of capital, labour, and technology." of the locale.

What you have stated is factual to some degree, but fixed supply economics has always failed, historically since Babylon.

Reply to this note

Please Login to reply.

Discussion

Michael Wilkins 1w ago

You’re conflating credit with growth.

Debt can fund growth, but it does not create it. Productivity creates growth; debt merely pulls future output forward and prices it today. When the productivity fails to materialise, the debt still remains.

China is a perfect example of this distinction, not a rebuttal. Suppressed currency + credit expansion produced output and massive malinvestment, demographic collapse, ghost cities, and an unserviceable debt overhang. That is not proof of sustainability.

Fixed-supply money did not “fail since Babylon.” Credit systems failed when claims exceeded real output. Sound money exposes those failures instead of masking them with issuance.

Inflation is not growth. It is a signal that monetary claims have grown faster than real goods and services.

S!ayer 6d ago

Yes poor fiscal policies are what affect economic outcomes, not the systems or models themselves.

We know GDP creates growth through innovation and actually doing the work, but you need debt to facilitate that without having to balance the books on reserves.

It's not hard to understand, and why El Salvador still requires IMF inputs because they can't operate an entire nation on a fixed supply.

Fixed money supply had failed, have you not read up on history?

Why do you think Egyptians fell or the Assyrians? Or the Romans, Greeks, Persians, British, Portuguese, Spanish, Belgium etc. etc.

Zimbabwe failed through hyper inflation due to sanctions not monetary policy, unable to get global backing and having to restructure their entire system to gold.

Inflation is not growth is a false statement, it is. That's why it's called inflation. The pot increases. Wages and salaries should increase in line with that rate, this creating overall better quality goods and services and quality of life.

This is all first year stuff man