Why price deflation signals progress

"The idea that some authority can deduce the correct level of this balance is not merely wrong, it is not even wrong, it is methodologically incoherent. Asking for the 'correct' interest rate is like asking how much the color orange weighs." 

~ Allen Farrington & Sacha Meyers

What if deflation isn't the economic boogeyman we've been told to fear, but the very *signal* that progress is happening?

In Part 2 of Allen Farrington and Sacha Meyers' brilliant essay, we dismantle the central myth of fiat economics – that printing money creates growth – and reveal why falling prices are the only honest measure that innovation has actually occurred. If the fiat prescription worked, where's the evidence? And why have central authorities never let us run the experiment?

Check out the original article: Number Go Down by Allen Farrington and Sacha Meyers (Link: https://x.com/allenf32/status/2045477517201477686)

References from the episode

• Part 1 of "Number Go Down" – make sure you catch it before this one. (Link: https://fountain.fm/episode/fLqds61ds9YbsnqGOkE8)
• "Bitcoin is Venice" by Farrington & Meyers – second edition announced for 2027. (Medium: https://allenfarrington.medium.com/bitcoin-is-venice-8414dda42070) (Amazon: https://www.amazon.com/Bitcoin-Venice-Essays-Future-Capitalism/dp/B09TTTGT11)
• "On the Manipulation of Money and Credit" by Ludwig von Mises. (Link: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2212135)
• And the companion Guy's Take coming soon on Bitcoin, Trust, and The Human Problem.

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“Because a tree in spring buds and comes greenly into leaf, are those leaves therefore the tree? If the newborn twigs and their leaves were all that existed, they would form a vague halo of green suspended in mid-air, but surely that is not the tree. The leaves, by themselves, are no more than trivial fluttering decoration. It is the trunk and limbs that give the tree its grandeur and the leaves themselves their meaning.

There is not a discovery in science, however revolutionary, however sparkling with insight, that does not arise out of what went before. 'If I have seen further than other men,' said Isaac Newton, 'it is because I have stood on the shoulders of giants.”

~ Isaac Asimov