Curt Doolittle

Theme: Incentives

  • Um. I can’t emphasize this enough. 1) *While Prices drive to Equilibrium, Market

    Um. I can’t emphasize this enough.

    1) *While Prices drive to Equilibrium, Markets drive to Disequilibrium*.

    2) Loose credit (monetary expansion) increases disequilibrium necessary for causing corrections (discovering limits).

    3) The debate between conservatives and progressives is whether the cumulation of short term gains exceeds the costs of the correction. In my opinion, this is rather obviously ‘no’, but that is because the economics profession does not measure changes in ALL capital and instead cherry picks measures of capital.

    Source date (UTC): 2018-07-11 10:04:00 UTC

  • Money and Monetary Aggregates: Malincentives All Around

    Yes, I work from the Misesian premise of full accounting when referring to money and its substitutes, and the totality of monetary aggregates. However, the problem with the Austrian model is (as has always been stated) it’s overly respectful of lenders (asset holders) without accounting for the moral hazard most money lenders profit from. This is ‘unsaid’ in the literature of both sides. It’s this competition between the moral premises of consumer vs lenders vs the judiciary (state) that over the priority to which we must grant the malincientives of either party and therefore the rewards of either party. I tend to err on the side of lender beware almost always, and the lender and borrower beware of the state at all possible times. All parties: state, lender, and borrower have malincentives.

  • Money and Monetary Aggregates: Malincentives All Around

    Yes, I work from the Misesian premise of full accounting when referring to money and its substitutes, and the totality of monetary aggregates. However, the problem with the Austrian model is (as has always been stated) it’s overly respectful of lenders (asset holders) without accounting for the moral hazard most money lenders profit from. This is ‘unsaid’ in the literature of both sides. It’s this competition between the moral premises of consumer vs lenders vs the judiciary (state) that over the priority to which we must grant the malincientives of either party and therefore the rewards of either party. I tend to err on the side of lender beware almost always, and the lender and borrower beware of the state at all possible times. All parties: state, lender, and borrower have malincentives.

  • Curt Doolittle updated his status. —“Lending and interest are fine – but Curt

    Curt Doolittle updated his status.

    —“Lending and interest are fine – but Curt Doolittle brings forward a salient observation – opportunity costing is the trade off in a truly free market. And what we have is a monopolistic “rat wheel” – without any opportunity cost, and with even less risk – it’s musical chairs, obfuscated by “nearly” impenetrable complexity.”—Rob Ellerman

    Source date (UTC): 2018-07-11 00:07:50 UTC

  • (re: male sex dolls for women) —“Never gonna work until the robot brings home

    (re: male sex dolls for women)

    —“Never gonna work until the robot brings home a paycheck.”— Todd E. Magnusson

    ouch.

    Source date (UTC): 2018-07-10 22:21:15 UTC

    Original post: https://twitter.com/i/web/status/1016809602598490112

  • Curt Doolittle updated his status. (re: male sex dolls for women) —“Never gonn

    Curt Doolittle updated his status.

    (re: male sex dolls for women)

    —“Never gonna work until the robot brings home a paycheck.”— Todd E. Magnusson

    ouch.

    Source date (UTC): 2018-07-10 22:21:04 UTC

  • “Lending and interest are fine – but Curt Doolittle brings forward a salient obs

    —“Lending and interest are fine – but Curt Doolittle brings forward a salient observation – opportunity costing is the trade off in a truly free market. And what we have is a monopolistic “rat wheel” – without any opportunity cost, and with even less risk – it’s musical chairs, obfuscated by “nearly” impenetrable complexity.”—Rob Ellerman

    Source date (UTC): 2018-07-10 20:07:00 UTC

  • (re: male sex dolls for women) —“Never gonna work until the robot brings home

    (re: male sex dolls for women)

    —“Never gonna work until the robot brings home a paycheck.”— Todd E. Magnusson

    ouch.

    Source date (UTC): 2018-07-10 18:21:00 UTC

  • Interest

    I don’t have antipathy toward interest. I have an antipathy toward rents. And if we are borrowing from the treasury and paying interest that’s just rents. Banks, in the era of fiat money function only as insurers of borrowing from the treasury, with interest as fee for insuring one another’s borrowings from the treasury. But since in practice there is nearly zero risk and liability, that interest is not earned. Ergo if we are converting capital from future to present there is no CHOICE of investment wherein the private holder of an asset is paying an opportunity cost.

  • Interest

    I don’t have antipathy toward interest. I have an antipathy toward rents. And if we are borrowing from the treasury and paying interest that’s just rents. Banks, in the era of fiat money function only as insurers of borrowing from the treasury, with interest as fee for insuring one another’s borrowings from the treasury. But since in practice there is nearly zero risk and liability, that interest is not earned. Ergo if we are converting capital from future to present there is no CHOICE of investment wherein the private holder of an asset is paying an opportunity cost.