March 19, 2015 at 9:42 pm #68
I want to share this article from Varoufakis blog.
ABSTRACT: “The responses of many to my post on Bitcoin reveal a powerful tendency to underestimate the ill-effects of deflation on a social economy. This tendency to underestimate deflation’s deleterious impact matters beyond debates on Bitcoin per se. For example, in Europe the incapacity of the European Central Bank (ECB) to act in the face of deflationary forces has revealed the same type of misunderstanding, as many commentators fail to recognise that deflation is a very serious threat and that the ECB’s lack of weapons against it constitutes a major weakness. In this post I return to the problem of deflation in a Gold Standard-like monetary system (e.g. Bitcoin or, indeed, the Eurozone itself) but conclude that, almost paradoxically, the technology of Bitcoin, if suitably adapted, can be employed profitably in the Eurozone as a weapon against deflation and a means of providing much needed leeway to fiscally stressed Eurozone member-states.”
Although the problems of bitcoin, as his highly energetic consume, his speculative purposes or his unfair uses… the model of a cryptocurrency could have his advantages to build an economic system free of the bank’s tyranny. Today, in the Eurozone, we are being witness of how the ECB creates and give money to the private banks with a ridiculous rate of interest (0,05%) and, then, the bank loan this money to the states, families or companies with a higher rate that can be multiply x100 or more. The difference between this rate is obvious and the lucrative purpose, it’s more obvious if it’s possible. As a result, the ECB is giving to the banks the key for creating money from the money and the debt; meanwhile, the population is condemned to the decay.
The point is, if we accept a cryptocurrency outside of the banking system and fixed in the real economy (without “magic” creation of money from the money), we can skip the banking step and be favored with the advantages that Varoufakis remarks:
1. a source of liquidity for the governments that is outside the bond markets, which does not involve the banks and which lies outside any of the restrictions imposed by Brussels or the various troikas
2. national supply of euros that is perfectly legal in the context of the European Union’s Treaties, and which can be used to increase benefits to society’s weakest members or, indeed, as seed funding for some desperately needed public works
3. mechanism that allows taxpayers to reduce their inter-temporal tax bill
4. free and fully transparent payment system outside the banking system, that is monitored jointly by every citizen (and non-citizen) who participates in it.
Then, ¿Why not?
- This topic was modified 4 years, 10 months ago by Freeman.
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