Is the Time Preference Theory Compatible with Negative Interest Rates? by Arnaert Brecht and Werner Ende

Is the Time Preference Theory Compatible with Negative Interest Rates? by Arnaert Brecht and Werner Ende

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Dr. Werner Ende’s review of Arnaert Brecht’s: „12 issues contradicting Ludwig von Mises Time Preference Theory (MTPT)“

Basic logic says if a theory postulates to be always true than just a single exception proofs the contrary.

Within your 12 items, there is more than one exception showing a situation, that a universal Time Theory fully based on Interest Rates (IR) does not apply to.

To avoid getting caught in this trap you have to qualify Mises’ statement. The TPT based on IE does only exist in a Free Market without Central Banks. Negative interest rates don’t exist there. In Human Action and Nationalökonomie Ludwig von Mises denies psychological arguments. They are not valid in economic theory.

I think in reality economy is driven by two forces: an irrational, psychopathic striving for power of a tiny group of mighty men contrary to freedom loving people.

The first group has proved that destroying the free market makes them very rich and mighty and the enormous rest, billions of men poorer and in the long run dead.

There is only a big fly in the ointment:

in the end, these psychopaths will be poor or dead too. Parasites always need a living organism and finally there will be none!

To shorten my conclusions:

Negative IR doesn’t apply to MTPT.

The arguments you cited reinforce to a greater or lesser degree your theory of a restricted validity of an IE based MTPT.

Werner Ende’s review of Aernaert Brecht’s Negative Interest Rates The Nemesis of Time Preference 
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