I don’t know how relevant this is now, but here’s a link to another post where I expressed my thoughts on what kind of pitfalls you might most likely face – https://lemmy.world/post/36867409
By the way, what is this phenomenon on Lemmy? Let’s say people are reluctant to read and comment on old posts published just a couple of days or a week ago, but with new ones, it’s a completely different story. What kind of psychology is this? Or it seemed to me?
Interest rates are more complicated than that. For any amount of US $ in the world, if no one ever wants to invest in US because no one wants to do any work anymore, then all of the $ will chase US bonds and chase down interest rates. US is on verge of collapse now, and interest rates are falling. US was on verge in 2009, and absurd QE program brought rates down. Europe had negative rates not long ago.
Manipulating rates is fairly easy, and in general, people/$ take whatever rates they are told to.
UBI can be funded with just tax credits. No money printing. Even if wheelbarrows become the new trusted currency, UBI of 10 wheelbarrows per month will make you rich in wheelbarrows if you are the only one willing to grow potatoes. There is still 0 rationale for UBI to result in wheelbarrow economy.
Whether production costs are lowered through imports, immigration, or automation, local production doesn’t matter. Local purchasing power matters. UBI increases purchasing power, and no political divisiveness over losing useless jobs. Apple being able to sell 3x the number of iphones is going to encourage them to open more apple stores, and pay what it takes to staff them.
You’ve decided to call a massive increase in wealth and freedom to be a technical stagflation problem.
Why would you buy US bonds if you don’t want to invest in the US? People don’t buy treasury bonds because they have excess USD and don’t have anything else to do with it, they can always exchange it for local currency, which pushes down the value of USD. People buy US bonds because it’s a reliable asset as they can usually count on inflation being low, the US government being stable and able to tax a highly productive economy to be able to pay the bond back. If any of those three things becomes relatively less true, ie. The euro now has more stable inflation and productivity, then the people will just exchange their excess USD for euro and buy euro bonds instead, or demand a higher interest rate relative to the EU bond to account for the increased risk.
Again why would I want to be rich in wheelbarrows of cash? Even if the government is smart and just starts minting million dollar bills to fix the space issue, it won’t matter if I have to beg the guy making the plow to take it. I might as well not sell the potato and keep it, it’ll keep it’s value better and I’ll have a better time convincing the plow maker that this potato, which they can eat, has value as opposed to this million dollar bill. Now that person with a million dollar bill can’t even buy a potato, again they have lost purchasing power, even though they have millions of dollars.
Again money is only as good as what you can buy with it, being rich with money you can’t buy anything with is about as useful as being rich in monopoly money.
US $ are never destroyed including when they are sent abroad. Holders of US $ must do something with them. US bonds is better than under mattress for financial institutions (which hold all US $ not in a briefcase or mattress) anyway. Exchanging for local currency gives counterparty the US$.
If you want meat or milk for your potatoes, that supplier may have enough potatoes, but can use wheelbarrows to get fruit. There is no reason to believe UBI leads to wheelbarrow economy.