Quote from: jaekwon on December 02, 2013, 10:07:24 AM

One property of money that divides classical economists & Bitcoin enthusiasts is the significance of the deflationary spiral.

While Keynesians argue that a currency needs to be managed to sustain economic activity, Bitcoin enthusiasts lack a strong response.

I wondered about this for a bit and wrote a blog post just now. Any feedback would be appreciated.

http://jaekwon.wordpress.com/2013/12/02/the-supernova-theory-of-deflationary-currency/

What the Keynesians mean by "managed to sustain economic activity" really means "being managed to maintain the power of those who are in power while transferring the wealth from the poor (through inflation) to the powerful."

The people that do not have a strong response to the problems with their theory are the Keynesians and they have not since the 1930s. The reason they have not been forced to provide one is because they support the powerful and so have not been called to account for their "management" (really mismanagement) causing a loss of well over 95% of the value of the dollar.

Many have challenged them with evidence and facts, but they support the status quo and so have a lot of cover from the press.