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This must indeed be first comment ever using the terms „fractional reserve bank“, „printing money“, „fiat“, „gold“, and „debt“, but not „inflation“. Which is r
by matt4077 8y ago
This must indeed be first comment ever using the terms „fractional reserve bank“, „printing money“, „fiat“, „gold“, and „debt“, but not „inflation“.
Which is really a shame because it’s the obvious result. And also a very good way to specifically separate people from their assets. And also pensions.
- neilwilson 8y agoInflation issues are also down to another western belief - venerating 'price competition' as the only pure way to resolve resource conflicts. The Chinese don't work that way. If there is a conflict for resources, those with the power just take them. If there is compensation offered for that, those without the power just get given it - and probably consider themselves lucky. The Chinese show you can have a system where you set a price, even one as low as zero, and then use coercive power to force people to take that price. Those with power don't need to get into price competition. And if they don't get into price competition, then prices won't go up. Inflation is killed at source.
- narrator 8y agoGold bugs and libertarians believe in the epically flawed quantity theory of money. Inflation can be controlled if it is used to build capital that increases efficiency and thus lowers the cost of oroduction. If newly created money flows directly into asset speculation via the western system of lending against assets to buy other assets, then this creates inflation. The western system also has the side effect of rewarding lazy money thst doesn't need to make anything to see itself grow. All it needs to do is follow the newly created money into whatever asset class is currently in fashion.