Suffering builds character like nothing else

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"One of the strongest bonds of unity among religions occurs when the contemplators of various streams compare notes of the experience of divine silence where all doctrinal verbosity ceases and only an interior and all-engulfing peace prevails."

Swami Veda Bharati

"The day modern people come to know the method of awakening the positive power of the mind, they will find that mind can be used for healing purposes also."

Swami Rama

SEPARATION OF THE MONEY AND STATE IS THE MOST IMPORTANT EVENT OF THIS DECADE

A scarcity in the money supply can lead to several economic effects, some of which might be perceived as creating an abundance in everything else. Here’s a detailed look at how this dynamic works:

### Deflationary Pressure

1. **Price Decline**:

- When the money supply is scarce relative to the demand for money, it often leads to deflation, where the prices of goods and services fall.

- As money becomes more valuable, each unit of currency can buy more goods and services, which might be interpreted as an "abundance" of goods relative to money.

2. **Increased Purchasing Power**:

- Consumers' purchasing power increases as the value of money rises. This means that individuals can buy more with the same amount of money, which could lead to the perception of abundance.

### Resource Allocation

1. **Efficient Resource Use**:

- Scarcity in money supply forces businesses and consumers to allocate their resources more efficiently. Wasteful spending and investments are curtailed, leading to potentially more efficient and productive use of resources.

- Entrepreneurs focus on the most profitable and necessary ventures, which can result in the better provision of goods and services that are truly needed by the economy.

### Savings and Investment

1. **Increased Savings**:

- A scarce money supply encourages saving because the value of money is expected to increase over time. Higher savings can lead to a larger pool of capital for future investments.

- This can lead to increased capital formation, funding for productive ventures, and eventually more goods and services in the economy.

2. **Long-term Investment**:

- With deflationary expectations, businesses may focus more on long-term investments rather than short-term speculative ventures. This can result in more stable and sustainable economic growth.

### Potential Downsides

1. **Reduced Consumer Spending**:

- If people expect prices to keep falling, they might delay purchases, reducing overall consumption. This can lead to lower demand for goods and services, which can hurt businesses and lead to economic stagnation.

- While deflation increases purchasing power, it can also create a cycle of reduced spending and investment, potentially leading to economic downturns.

2. **Debt Burden**:

- Deflation increases the real value of debt, making it harder for borrowers to repay their loans. This can lead to higher default rates and financial instability.

- Businesses and individuals with significant debt may struggle, which can lead to bankruptcies and reduced economic activity.

### Comparative Abundance

1. **Relative Abundance**:

- In a deflationary environment, while money becomes scarcer and more valuable, goods and services may appear more abundant because their prices drop. However, this "abundance" is relative to the value of money and not necessarily an actual increase in the production of goods and services.

2. **Production Incentives**:

- If businesses expect prices to continue falling, they might reduce production, which can lead to actual shortages over time. The initial perception of abundance could be misleading if the underlying economic activity slows down.

### Conclusion

A scarcity in the money supply can create a perception of abundance in goods and services due to falling prices and increased purchasing power. However, this effect is complex and can have both positive and negative consequences. While it encourages savings and efficient resource use, it can also reduce consumer spending and increase debt burdens, potentially leading to economic stagnation. The overall impact depends on how these factors balance out in the economy.

Austrian economics and Keynesian economics offer differing perspectives on the role and management of money supply in an economy. Here’s a detailed comparison of the two approaches:

### Austrian Economics: Fixed Money Supply

1. **Principle of Fixed Money Supply**:

- Austrian economics advocates for a fixed money supply, often exemplified by a gold standard where money supply is tied to a finite resource.

- Proponents argue that a fixed money supply prevents inflation and promotes savings, leading to sustainable economic growth.

2. **Mechanism**:

- With a fixed money supply, the value of money is determined by supply and demand. As the economy grows and productivity increases, the purchasing power of money rises (deflation).

- Price signals become clearer, leading to more efficient allocation of resources. Entrepreneurs can make long-term investment decisions without worrying about monetary policy changes.

- Savings are encouraged because money retains or increases its value over time, leading to more capital accumulation and investment.

3. **Advantages**:

- **Price Stability**: A fixed money supply can prevent the kind of price instability associated with inflationary policies.

- **Reduction of Malinvestment**: Artificially low interest rates (common in Keynesian policies) can lead to malinvestment. A fixed money supply helps maintain natural interest rates, promoting genuine investments.

- **Encourages Savings**: With money maintaining or gaining value, people are more likely to save, creating a pool of capital for investment.

### Keynesian Economics: Flexible (Infinite) Money Supply

1. **Principle of Flexible Money Supply**:

- Keynesian economics supports a flexible money supply, managed by central banks to stabilize the economy through monetary policy.

- It posits that active intervention is necessary to manage economic cycles, control inflation, and reduce unemployment.

2. **Mechanism**:

- Central banks adjust the money supply and interest rates to influence economic activity. During recessions, they increase the money supply and lower interest rates to stimulate spending and investment.

- In periods of inflation, they reduce the money supply and raise interest rates to cool down the economy.

- This approach aims to smooth out the boom and bust cycles and maintain full employment.

3. **Advantages**:

- **Economic Stabilization**: Flexibility allows for active intervention to stabilize the economy, preventing deep recessions and controlling runaway inflation.

- **Stimulates Demand**: In times of economic downturn, increasing the money supply can stimulate demand, leading to job creation and economic recovery.

- **Government Spending**: Keynesian economics supports fiscal policy (government spending) as a tool to stimulate the economy, which is often funded by flexible monetary policy.

### Comparative Analysis

1. **Inflation and Deflation**:

- Austrian economics views deflation (rising value of money) as beneficial, promoting savings and investment.

- Keynesian economics sees moderate inflation as a sign of a growing economy and believes deflation can lead to decreased spending, worsening economic downturns.

2. **Economic Stability**:

- Austrians argue that a fixed money supply leads to long-term stability by avoiding the distortions caused by artificial manipulation of the money supply.

- Keynesians argue that flexible monetary policy provides tools to manage economic cycles and prevent extreme economic instability.

3. **Savings vs. Spending**:

- Austrian economics emphasizes savings as the foundation of economic growth.

- Keynesian economics emphasizes spending to drive demand and economic activity.

4. **Policy Implementation**:

- Austrian economics relies on market mechanisms and minimal government intervention.

- Keynesian economics relies on active government and central bank intervention to manage the economy.

In summary, Austrian economics supports a fixed money supply on the grounds that it ensures price stability, prevents malinvestment, and encourages savings. In contrast, Keynesian economics advocates for a flexible money supply to stabilize the economy, manage inflation, and promote full employment through active intervention. The debate between the two approaches revolves around differing views on the causes of economic cycles and the best methods for achieving long-term economic stability and growth.

What’s aether ?

"Explain to me how an increase in paper pieces can possibly make a society richer."

—Hans-Hermann Hoppe

Level 21

That’s why it says “in the end”

Since it’s a function of the consciousness it looks far far away although it’s always very near

Those who leave everything in God's hands will see God's hand in everything.

~Shams Tabrizi

Enlightenment is, in the end, nothing more than the natural state of being.

~Adyashanti

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STATISTS ARE CRIMINALS.

Master sleep and you have mastered meditation