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You forgot the most important one, which is, has been, and always will be: 6. The inability for a central bank to print gold. I understand the various argumen
by caeril 5y ago
You forgot the most important one, which is, has been, and always will be:
6. The inability for a central bank to print gold.
I understand the various arguments for fiat money in advanced economies, and many of them make sense, but the one thing that should stop everyone from advocacy of CB-printed fiat is the Cantillion Effect [1].
Any system in which the first-at-the trough benefit exclusively to the detriment of those last-at-the-trough is prima-facie wrong. It causes MORE inequality than any tax structure, redistribution plan, or Elysium-style Capitalist dystopia you could ever dream of.
If you advocate for management of money supply by printing of fiat, that's not necessarily bad. But there are no Bernanke-style helicopters coming to distribute it fairly or evenly. It's always: Blackrock and Citadel first, you twenty-third. And that's not a system of money supply management that's even remotely just.
Until the Federal Reserve stops handing free money to Larry Fink that may eventually get to me, much too late, at money velocity cycle #18, whilst publishing press releases bemoaning THE VERY INEQUALITY THEY CREATE, I'm going to stack gold and cryptocurrencies. I have no interest in their lies, and you shouldn't either.
[1] https://en.wikipedia.org/wiki/Richard_Cantillon#Monetary_theory https://en.wikipedia.org/wiki/Richard_Cantillon#Monetary_the...
- imtringued 5y agoOkay but have you wondered about what will happen if Blackrock buys more Bitcoin than you do?
- razius 5y agoAnd from where do they get the money to buy the bitcoin?