Question to skilesare: what is the hypercapitalist take on rising interest rates? My impression is that hypercapitalism encourages negative interest rates. Am I understanding that correctly? Or, is hypercapitalism a reaction to negative interest rates?
I think rising interest rates should be a natural phenomenon arising for money getting more expensive. I also think that there are not many good reasons for money to get expensive. Money is a tool and a score keeper. It isn't anything real. There should always be enough money in circulation to buy all the things that can be produced. If you've ever felt that you didn't make something because money was too expensive then...money was too damn expensive.
This is an issue in an agrarian economy where most of your gdp is made up of actual limited resources. As we move toward automation, maker bots, massive computing power, etc the amount of our economy that is made up of people paying for the production of 'limited only by means and imagination' products and services will only increase.
Interest(and note that interest is not the same thing as return on investment) should be zero or negative until every person on this planet is making a heart wrenching decision on the order magnitude of spending their time curing cancer or solving world hunger.
To make money this available you have to have a means of destroying it when you approach these situations to control inflation. That is where the decay factor comes in. You can print it when you need it and burn it when the world gets stumped for progress.
Negative interest rates that we see today are a reality to deal with. Hypercapitalism manages this by flipping bankers to a form of vc where they make their profits off of the long term success of the people they lend money too instead of the interest charged. I think this is a better way.
Thanks for the response and clarification. These are interesting ideas and a radical departure from the current economic situation. If I have time, I would like to read more of Silvio Gesell's theories. And, I'm glad to hear that you've considered the potential for (hyper)inflation resulting from the increased velocity of money that will result from its increased availability and the fact that consumers will be eager to spend it quickly before it decays.
I am still unclear on what (if anything) is wrong with a modest positive interest rate along the lines o...
I posted a stupid question a couple of weeks ago and got some good feedback.
@ChristianKl suggested that I start building a model of hypercapitalism for people to play with. I have the first one ready! It isn't quite to the point where people can start submitting bots to play in the economy, but I think it shows that the idea is worth more thought.
Analysis:
http://www.hypercapital.info/news/2015/4/19/a-published-model-of-hypercapitalism
Runnable Code - fork it and mess around with it:
http://runnable.com/VTBkszswv6lIdEFR/hypercapitalism-sample-economy-for-node-js-and-hello-world
I'd love some more feedback and opinions.
A couple of other things for context:
hypercapital.info - all about hypercapitalism
Overcoming bias about our money
Information Theory and the Economy