Allen Farrington

NUMBER GO DOWN: Deflation, Bitcoin, and Communist Lies | Allen Farrington

- Good vs. bad deflation: The essay distinguishes between natural deflation in functioning markets (prices falling due to abundance and productivity) and deflationary spirals that occur when credit bubbles pop. Fiat economists incorrectly blame deflation itself rather than the credit misallocation that precedes it. - Fiat economics as circular justification: Central banks use deflation fears to justify endless money printing, but this printing is what creates the capital misallocation and fragility in the first place. The conclusion (print more money) remains constant regardless of the economic argument presented. - Capitalism as boogeyman: The term "capitalism" has been so corrupted by association with cronyism and fiat banking that it no longer describes what people think. Central banking itself is communist (point 5 of the Communist Manifesto), making true free markets impossible when money supply is centralized. - Saving and production precede consumption: The "paradox of thrift" wrongly assumes spending enables saving; actually, production and saving enable future consumption. This fundamental confusion drives policy toward discouraging savings. - Bitcoin as Venice second edition: A revised edition publishing in Nashville at Bitcoin Magazine's next conference will include new standalone essays like "Number Go Down." The book is designed so readers arrive at Bitcoin conclusions organically without it being explicitly argued. - ARK and Lightning infrastructure: Layer 2 development (particularly ARK Labs' work) is making peer-to-peer payments seamless by hiding complexity behind the scenes, allowing self-custody while improving on Lightning's channel and liquidity requirements.