This is offtopic but I am tired of pretentious people.
The money supply must grow exponentially because liquidity premiums aka interest payments. You can now either choose to eliminate liquidity premiums and hence abolish inflation and exponential growth in the money supply or you can choose to have inflation and an exponentially growing money supply with endless increases in public debt.
The fact that if the money supply is $100 and 2% interest must be paid which is then subsequently reinvested for compounding obviously requires the economy to keep track of $102. Hence compound interest which is caused by liquidity premiums results in a perpetual increase in the money supply. The fact that governments must borrow money is purely how we decided to run the system right now. You could in theory do helicopter money as well and it would amount to the same.
Now, since positive interest rates result in an increase in the money supply, reducing the money supply requires the opposite, i.e. negative interest rates.
Negative interest rates don't exist because of cash. That is the only reason. People don't want negative interest rates because they actually love the illusion of earning compound interest and subsequent inflation which cancels out the interest. People criticise inflation while simultaneously criticizing negative interest rates, the height of hypocrisy. After all, if you implement negative interest rates a while lot of people will have to work instead of living off the work of others. They say that it is unfair to not turn other people into debt slaves, while simultaneously criticizing how unjust it is, that their dreams of turning other nations and future generations into debt slaves is disrupted by so called defaults and debt restructuring. They yell out debt is bad while secretly desiring to have debt slaves of their own.
The money supply must grow because of population increase. Population was almost exponential growth in the last century, but now it has essentially stopped so we are entering a new paradigm.
The stock market under a declining population will be fascinating to watch.
Automation will allow us to produce more with less people resources leading to increased consumption per capita of goods and services letting the game continue.
Population decline will not be kind to society without AI/Robotics to take care of us.
The money supply must grow exponentially because liquidity premiums aka interest payments. You can now either choose to eliminate liquidity premiums and hence abolish inflation and exponential growth in the money supply or you can choose to have inflation and an exponentially growing money supply with endless increases in public debt.
The fact that if the money supply is $100 and 2% interest must be paid which is then subsequently reinvested for compounding obviously requires the economy to keep track of $102. Hence compound interest which is caused by liquidity premiums results in a perpetual increase in the money supply. The fact that governments must borrow money is purely how we decided to run the system right now. You could in theory do helicopter money as well and it would amount to the same.
Now, since positive interest rates result in an increase in the money supply, reducing the money supply requires the opposite, i.e. negative interest rates.
Negative interest rates don't exist because of cash. That is the only reason. People don't want negative interest rates because they actually love the illusion of earning compound interest and subsequent inflation which cancels out the interest. People criticise inflation while simultaneously criticizing negative interest rates, the height of hypocrisy. After all, if you implement negative interest rates a while lot of people will have to work instead of living off the work of others. They say that it is unfair to not turn other people into debt slaves, while simultaneously criticizing how unjust it is, that their dreams of turning other nations and future generations into debt slaves is disrupted by so called defaults and debt restructuring. They yell out debt is bad while secretly desiring to have debt slaves of their own.