a) the serial number/legal tender discussion is “thought experiment”. this is a popular technique used by people (such as Einstein–he couldn’t very well go out an test realtivity) to see problems in new perspctives. Note that it’s prefaced with the word ‘imagine’.
b) i think the main purpose of the article is to simply make the point that interest rates are a continuum in both directions — positive and negative. A 0% interest rate is not some sort of magical wall below which interest rates (in general) cannot go.
c) My confusion here is that the community seems to dislike *openly* punishing savers to the tune of 10%, right? But after all, the US Government will not choose deflation. Inflation is already baked in.. we’re just waiting for the bread to rise. So really the question is whether it could be done in a way that only people in obscure web boards understand, or done in a way that everyone can understand. Your assets will be seized, one way or another.
d) You are all familiar with the concept of diseases that are essentially 100% terminal in the near term: some types of pancreatic cancer, freshwater amoeba that get into your nose, etc.
Guess what: the damage is already done! We’re still walking and talking, but it’s too late. The powers have already instantiated an unimaginable amount of money. We are STILL on track to double government debt every eight years, just like the past 20 years. The Murican way of life, where I can buy 1 oz of flavored chips in a foil-lined plastic bag, packed in larger protective plastic bag, all for less money than I make in 20 seconds of work, is over. I guess I’ll have to get used to buying chips a tin again.
