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> Sound money is the surest route to destroying capitalism. I don't agree at all. But let's wait and see. That is a risk I'm happy to take. Sound money is hon
by javert 7y ago
> Sound money is the surest route to destroying capitalism.
I don't agree at all. But let's wait and see. That is a risk I'm happy to take. Sound money is honest money. A system that can't survive sound money is an unsound system.
Anyway, we probably disagree on the definition of 'capitalism.' We don't have capitalism now, we have a mixed economy with partial capitalism.
> the Great Depression. Sound money caused that.
I completely disagree. This is but one theory, and I don't think it's a good one.
> It was a mixed bag, because the hyperinflation wiped out a lot of debts.
Hyperinflation = no debts, but also no savings. So only the very wealthy with large portfolios in real estate or industry could survive financially. Everyone else reduced to poverty. (Granted, I'm no expert on Weimar history, so if that's not exactly accurate, I welcome corrections.)
- QuesnayJr 7y agoSound money destroys entrepreneurialism. Rather than investors taking risks to ensure a return for the future, they rely on the government to create risk-free investments for them. The German economy recovered from hyperinflation, and was booming by the end of the twenties, only to be taken down by the Great Depression. Under Hitler, they abandoned the gold standard, and their economy recovered.