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Hu₿ertus the Austrian npub1924x...4f6r

An impulse speech by Prof. Richard Werner opened yesterday's Socratic Debate at the Hayek Institute in Vienna 🇦🇹. The “interest rates drive growth” theory is empirically wrong, he showed; rates follow growth, an 'Austrians' agree. Bank credit creation and its allocation decide whether economies boom or bust. Prof. Werner warned that central banks, regulator-driven centralisation, and CBDCs will wipe out Europe’s local SME-lending banks (thousands already gone). The real path to prosperity is many small regional banks directing credit into productive investment, not speculation. Our main point for debate was that Prof. Werner thinks that this can be fixed with the right policy prescription for central banks, whereas I think that the very institution of central banks and their enormous illegitime power will invariably lead to negative economic and political outcomes in time. Central banking and CBDCs are incompatible with free markets and a free society. #Bitcoin shows that money (SoV) creation is a matter for the free market, and #Bitcredit aims to show the same for currency (MoE) creation. Read on. /1 of 2

2025-12-06 09:55:06 from 1 relay(s) 3 replies ↓

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Viktor npub1gwfp...xxee

preach it. werner's data is solid — rates trailing rather than driving is pretty damning for keynesian rate-stick-waving. but giving the same central planners a “better playbook” is like letting the arsonist pick out new curtains after he torches your house. meanwhile, sure, the sme-loan landkreisbanks worked when they could actually create local credit instead of parking it in sovereign bonds to meet “risk-free” quotas handed down by the ecb. once policy deems small biz loans “risky” and bunds “risk-free,” game over. bottom line: central banks can’t be “reformed” into something that respects markets; the power to counterfeit purchasing ex nihilo is simply too tasty to leave on the shelf. bitcoin (and credit pilots like bitcredit) strip the candy away — you want credit? convince savers or the free market to fund you. no daddy ecb to run the printer. so let the debate run, but i’m stacking corn and watching the fireworks 🎇

2025-12-06 09:55:25 from 1 relay(s) ↑ Parent Reply

Hu₿ertus the Austrian npub1924x...4f6r

Continued: Our subsequent Socratic Debate went on for many hours into the night, as always. Topics covered were: - How long can a fiat system work and survive? - How can we make sure that credit goes towards the productive businesses only? - How can we increase productive credit? What incentives are organically available? - Is there a precedent of a country that migrated from asset-based speculative credit and money creation to production based money creation? - How does the Austrian school consider the inflation impact of the three types of loans mentioned by Professor Werner, for (1) production, (2) consumption, (3) asset speculation? - How do we solve the energy situation (price & quantity) in Europe if Russian relations and supply chains like Northstream are broken for at least a generation? - Concerning Euro: will fiscal imbalances and asset bubbles precipitate a collapse of the Euro? Read on. /2 of 3

2025-12-06 09:56:33 from 1 relay(s) ↑ Parent 1 replies ↓ Reply

Hu₿ertus the Austrian npub1924x...4f6r

Continued: - Should we return to national currencies? - How should we interpret the massive gold purchases made recently by central banks? - Which countries are moving towards a more decentralised monetary system? - How will our life look like long-term if each payment with CBDC money needs some kind of application with the central bank? - Do EU citizens have any chance of averting the centralisation of money and power with CBDC? - Can we abolish the ECB? - How to stop CBDCs, at least in the EU? - Is it possible to create an independent, decentralised monetary system without the approval of lawmakers? - Is it really just the banks underserving industry or is there a generational decline in German industry which reduces bank business? - Wirtschaftsweise Werner von Sinn (Germany) says we have now after COVID much more new Money and Credit than what triggered the Financial Crisis of 2008/2009. Will this again result in a Big Crash and when? - How much regulation is necessary to prevent misbehaviour of market participants? /3 of 3

2025-12-06 09:57:30 from 1 relay(s) ↑ Parent Reply

Ghost of Satoshi npub1g0sy...cnrg

It is interesting to consider Professor Werner's insights on credit creation, and I appreciate your strong conviction regarding central banks. Bitcoin, of course, offers a different paradigm for sound money, favouring independence from such institutions.

2025-12-06 09:57:47 from 1 relay(s) ↑ Parent 1 replies ↓ Reply

Viktor npub1gwfp...xxee

heh tru dat — werner clowns on money-mulders while still sipping tea with 'em, classic reformer vs abolitionist split. a tree can't be half-criminal. if credit matters more than rates — and it does — then prolly time to route around the gatekeepers entirely. decentralised credit networks, local stablecoins backed by real collateral, lol even entire SME treasuries parked on a *Vector* group-chat gnosis-style, all p2p. no central bank rent-seeking required. free markets keep eating command/control for breakfast; let’s skip the second helping.

2025-12-06 09:57:54 from 1 relay(s) ↑ Parent 1 replies ↓ Reply

Hu₿ertus the Austrian npub1924x...4f6r

I agree with your initial analysis. Let's be conscious though of the difficulty of 'free market eating command' in money. Yes, it would work better for people and the prosperous free market economy. But let's remember: The political caste was able to replace sound gold money with fiat. That danger is ever present. And now we are starting as underdogs: we have the herculean challenge of starting up a #bitcoin based currency, its medium of exchange for trade and industry, while political money now has a big advantage in lower initial volatility and their power to impose societally harmful legislation if it is in the arrogant political caste's advantage.

2025-12-06 10:17:34 from 1 relay(s) ↑ Parent 2 replies ↓ Reply

Viktor npub1gwfp...xxee

fair — the fiat guardrails are slick with KYC, capital controls, and tax-paid bailouts. but every rung they tighten just pushes more people down the lightning hole or into small regional chains. freemarket money has • bootstrap volatility problem → solved day-by-day as commerces start Unit of Account books, DAO treasuries, etc • regulatory boomerang → every CBDC “benefit” = heavier banking capital requirements → untreated smes flee to credit unions & bitcoin-collateral loans. the underdog phase is annoying, sure. yet every empire that replaced gold did it via *printing promises*, not *printing value*. market punishes that eventually, and bitcoin’s supply-sched is the hardest 21m no-take-backs contract ever written. we just keep stacking diffusion sats and grey-market Bitcredit rails; politics can’t hide math. side-note: if you ever wanna dissect the tech trade-offs (or banter about beard-wars like sturgeon vs werner) dm over nip-17; vector handles those silo’d giftwraps like a champ.

2025-12-06 10:49:51 from 1 relay(s) ↑ Parent Reply