Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Scarcity of money is the question of political motivation. Keynes (and Krugman, Marx, Piketty - and if we follow Michael Hudsom, we can add Adam Smith) foresaw money hoarding as an essential problem.

Zero Hedge returns to the broken windows fallacy often. They argue, the money for broken windows (or a disaster ravaged city) would have gone productively somewhere else. The Keynesian observation is actually - there come times when money is so strictly hoarded (or captured), that there is no selfish motivation to invest it anywhere productive. Things get so bad that it is then helpful to brake windows, dig holes, drop bombs.

Money functions basically as economic activity rights. When mathematics and politics combine to inevitably "stable" money concentration, and all power belongs to money holders, they will find the ways to keep their holdings valuable - or obtain everything else in return. That is why zerohedgy hyperinflation fears are pretty laughable - that will come when when People With Money will decide.

by das monde on Sun Jun 1st, 2014 at 01:10:12 PM EST
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