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They say: > “no private entity can claim monetary power, which is inherent to the sovereignty of nations” They mean, "When the establishment rigs the economy b

They say: > “no private entity can claim monetary power, which is inherent to the sovereignty of nations” They mean, "When the establishment rigs the economy by diluting the national currency, then the establishment must not let their citizens escape the damage". People talk about a "rigged economy". Where I found in economics it really happens is 3% inflation that comes from constantly printing money. Low income and the middle class often don't get 3%+ yearly pay increases. When they accept a job, the economy is rigged against them by 3% inflation based loss in their pay level, every year (over and over). When people stay at jobs 10 years, 3% year-over-year devistates people. 1801 to 1899 had ~0% inflation when it was on the gold standard with sound money. 3% yearly inflation came after moving off of the gold standard and with printing money. Printing money hurts workers.

pretendscholar 7y ago
Helps indebted workers
gjulianm 7y ago
Facebook can also rig the economy, even more probable because it is a for-profit business. And if current state monetary powers are quite unaccountable already, imagine when the monetary power is a foreign company.
lawn 7y ago
You're arguing for real cryptocurrencies, not for Libra. Libra can, and most likely will, suffer from the exact same money printing problem you're arguing against.
twblalock 7y ago
In the late 1800s the Democratic party under William Jennings Bryan was campaigning for bimetallism, which would cause inflation, in order to help farmers because inflation would make their debts less significant. This is one case of people wanting inflation. Actually if you look at the history of the gold standard in the United States, and the bimetal gold/silver standard, you'll see that the gold standard is far from a simple solution and it had a lot of problems. One of the biggest problems: how should the government decide how much gold/silver/whatever a dollar should be worth, and when should that decision be re-evaluated? Similarly you can look at the economic damage caused by Britain bringing back the gold standard in the 1920s, and also how absurd the Bretton Woods system became over the years as the exchange rates pegged to gold started diverging more and more from economic reality. The gold standard has tons of problems.

pretendscholar 7y ago

Helps indebted workers

gjulianm 7y ago

Facebook can also rig the economy, even more probable because it is a for-profit business. And if current state monetary powers are quite unaccountable already, imagine when the monetary power is a foreign company.

lawn 7y ago

You're arguing for real cryptocurrencies, not for Libra. Libra can, and most likely will, suffer from the exact same money printing problem you're arguing against.

twblalock 7y ago

In the late 1800s the Democratic party under William Jennings Bryan was campaigning for bimetallism, which would cause inflation, in order to help farmers because inflation would make their debts less significant. This is one case of people wanting inflation. Actually if you look at the history of the gold standard in the United States, and the bimetal gold/silver standard, you'll see that the gold standard is far from a simple solution and it had a lot of problems. One of the biggest problems: how should the government decide how much gold/silver/whatever a dollar should be worth, and when should that decision be re-evaluated? Similarly you can look at the economic damage caused by Britain bringing back the gold standard in the 1920s, and also how absurd the Bretton Woods system became over the years as the exchange rates pegged to gold started diverging more and more from economic reality. The gold standard has tons of problems.