@JeffBooth's famous line is: "The natural state of the free market is deflation" Here's why it's fundamentally true:

When you watch a scandal like the one in Minnesota unfold, it’s natural to want a villain and a simple fix. Catch the criminals. Fire the people who looked away. Tighten the rules. Do all of that. But if we stop there, we’ll be right back here again in a few years, with a new

@PeterDiamandis That the deflation tech tries to give us never materialises due to its effect on our system which is mired in nominal debt. I predict inflationary policies to offset the deflation. And, I predict that the new money props up asset prices increasing the divide between rich and

Politics is theatre now.

The core issue is how the money system is built. Technology lets us make more with less, so many prices should fall over time. That’s the point of progress. Your phone gets better and cheaper. Communication gets near-free. More and more work gets automated. But we don’t live in

Yes, cut fraud and waste first, and publish receipts. But we can’t pretend it permanently funds an ongoing healthcare bill. Even a perfect clean up doesn’t change the underlying cost curve. If we don’t fix healthcare incentives and the money incentives driving the squeeze,

When I look at this Ro Khanna versus David Friedberg exchange, I see two rational instincts colliding, and then both of them missing the deeper machine that’s creating the conflict in the first place. Ro’s position is more constrained than it sounds. If you’re a politician

AI and robotics will accelerate the divide between rich and poor as the debt based monetary system we live in pursues inflationary policy to offset the deflation technology tries to give us.

This growth will be reflected in the deflation technology wants to give us. But because we live in a debt based system where stability is provided by ever rising prices...so will the growth be reflected in the inflation the system fights back with. AI is an inflationary

AI makes the underlying economy more deflationary. Our current money system is allergic to deflation. That conflict doesn’t resolve by cheering higher GDP numbers. It resolves by changing the rules of money and incentives.

@DavidMcNab17 This isn’t a tribe thing. It’s a rules thing. Bitcoin is a neutral system with fixed issuance rules. Nobody can change the ledger to quietly dilute everyone else. That matters because it gives ordinary people a way to save that isn’t designed to melt. I’m not saying “replace

@DavidMcNab17 I’m not saying anyone thinks you can literally print energy. I’m saying you can create money claims instantly, but you cannot create real energy instantly. Physics and build times don’t care about accounting. Even if renewables are the answer, building them takes years and uses

@DavidMcNab17 Yes, we do. My point isn’t that hard money magically ends war. My point is that money creation makes war easier to finance and easier to continue. When governments can fund war through new money or debt that will be backstopped, the cost is less immediate and less explicit to

@DavidMcNab17 Better data is good. But it doesn’t solve the core problem, which is that knowledge is dispersed. Millions of people see local shortages, skills gaps, and opportunities before any central dashboard does. Prices already do “resource gathering” in real time. They tell you what is

@DavidMcNab17 I agree government spending is not automatically inflationary. Spending that increases real supply, like more energy capacity, more housing, better infrastructure, can be disinflationary over time. But it’s not true that “government spending doesn’t cause inflation”. It can, if

@DavidMcNab17 Supply shocks are real. Energy shocks are real. But it’s not either supply or money. Money and credit decide whether a supply shock stays a relative price change or becomes broad inflation. If oil becomes scarce, oil gets more expensive. In a system where total spending power

@DavidMcNab17 If money is a tool to organise labour, then it’s not “overcomplicated” to ask whether the tool is giving honest signals. Money works by communicating information. Prices and wages tell us what’s scarce and what society wants more of. If the ledger can be changed at will, the

@DavidMcNab17 I’m not claiming you look around the high street and see prices falling everywhere. I’m saying the underlying force from technology is deflationary. We can do more with less time and labour, so many prices want to fall. The reason it doesn’t feel like that is the debt based

@DavidMcNab17 Exactly. That’s why I’m arguing for money that holds its value. If technology makes us more productive, the default should be that everyday life gets cheaper over time. That helps the poorest the most because they spend most of their income on essentials. Inflation is a hidden

@DavidMcNab17 blocked me so I can't reply to his tweets. Here's my response to his push back: On the mechanics, I’m with you. A currency issuer can always credit accounts. That part is “reality”. But that’s only the first sentence, not the conclusion. The real limits are

If I've given you a clearer way to think about communism, please retweet and share this thread so the conversation moves from the symptoms to the root cause: