Re:How important are 'economies of scale'?
by roenxi on Saturday February 22, 2020 @05:27PM
(#22393767)
Yes and no. That is one phrase in a larger sentence where the important part is the 'government steps in during crisises to pick winners and losers'.
The world has seen at least 3 currency regimes since 1914 (pre-Bretton Woods, Bretton Woods, post-Bretton Woods) and possibly more. Exactly what 'monetary creation' means changes depending on the system and isn't as much a problem as government interference when the market tries to purge big chunks of the economic elites from power.
If the market is blocked from getting rid of idiots, it is expected that idiots will end up in charge of important things. Anyone can see these banking collapses a mile away; look at Uber's valuation vs losses! The problem is that blindly optimistic idiots are being given far too much money to play with and big players are allowed to dodge the pain when obvious risks become realities in a crisis.
The world has seen at least 3 currency regimes since 1914 (pre-Bretton Woods, Bretton Woods, post-Bretton Woods) and possibly more. Exactly what 'monetary creation' means changes depending on the system and isn't as much a problem as government interference when the market tries to purge big chunks of the economic elites from power.
If the market is blocked from getting rid of idiots, it is expected that idiots will end up in charge of important things. Anyone can see these banking collapses a mile away; look at Uber's valuation vs losses! The problem is that blindly optimistic idiots are being given far too much money to play with and big players are allowed to dodge the pain when obvious risks become realities in a crisis.