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Kane McGukin 2y ago

HT to Jeff Snider for mentioning Knut Wicksell's 1906, The Influence of the Rate of Interest on Prices.

We face this problem today. Bc central bankers have no idea where "normal rates" should be, our core prices never fall (energy/food).

https://www.econlib.org/library/Essays/wcksInt.html

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Kane McGukin 2y ago

Bc productivity has long been in decline + less real capital used and more malinvestment, they'll never figure out what "normal rates" should be w/o:

A) Taking a haircut & re-introducing a #Gold standard

B) Introducing new sound money; #Bitcoin

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Kane McGukin 2y ago

The halving effect.