Re:Debunking “America has become so anti-innovation – it's e...
by padobson on Friday May 19, 2017 @12:38PM
(#14377274)
I think all of your points are valid. It IS a complex subject, and we should be open to many view points. There are certainly a number of lines of attack on my ideas that are valid and reasonable.
I bristled at the idea that my statement is ahistorical. It may have other problems, but I've yet to see any historical counter examples - a period of mass-deleveraging leading to economic retractions in the absence of artificially low interest rates. If you can cite an example like that, I'll rethink my statement.
Re:Debunking “America has become so anti-innovation – it's e...
by ska on Friday May 19, 2017 @02:00PM
(#14377982)
Ok, I don't have time to do this properly but as a first pass:
1) I think you are now narrowing quite a bit ".. mass-devleveraging ... interest rates"
2) Consider e.g. sovereign defaults of England and Spain in 14th, Roman bank collapses & liquidity issues - multiple times during both Roman and Byantize (will posit that many early issues are difficult to separate from wars, but there were fairly clear panic effects in iirc 3rd and 4th). Italian banks in 14th c. etc.
I'm objecting to the rather stronger (than an austrian would make) statement that :"systemic financial crises cannot happen without cheap,printed money". Emphasis mine. You even have to squint very hard at your first example to make it fit - it's increasingly hard to try and argue from anything pre 18th century. You can probably (and many Austrian's would) try and make the argument for this as a root cause of most/all modern crisis, but of course alternate analysis exist that are similarly grounded. It's a complex subject.