Quote from: johnyj on November 06, 2012, 01:35:24 AM

There is no big difference between credit from today's saving or credit from tomorrow's saving. The later gives people a feeling that those money are created out of thin air, ...

What you have described is the problem associated with the mis-allocation of tomorrow's capital.

Try driving a car down a road you have never traveled, you constantly need to adjust for obstacles and unanticipated events as and when they happen. Now drive the same car down that same road, but don't steer from the present but pre-program today when and how to steer and break. Even if you can anticipate all the stops turns (not possible), you can't anticipate the kid running out into the road.

The bottom line is the future isn't predetermined; there is climate change, technological innovation and population size, all with unpredictable results. Make the wrong investment today with the futures capital "the thin air" and humanity pays the price down the line.

@johnyj MoonShadow position in mis-allocation of capital is the only logical outcome. The difference is today's savings are for tomorrows unanticipated outcomes, erode tomorrows savings today and today's savings are worthless tomorrow.

Quote from: MoonShadow on November 04, 2012, 05:19:45 PM

... Your understanding of the role of credit is somewhat skewed. Not really wrong, but disconnected. It's not credit or liquidity that leads to the outcome that you seem to believe above, it's reallocation of real capital that can occur using credit as a tool. This is not a certain outcome, as it's subject to the errors of investment and adds another; namely the possibility of mis-allocation of capital. If you want to understand why bitcoin is the way it is, one must understand Austrian Economic theory. If Austrian Economic theory is wrong, Bitcoin will fail. If Austrian Economic theory is correct (or more accurate than other theories) Bitcoin will persist and likely continue to grow. Even that isn't certain.