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I the people lose trust in a country the currency goes down exactly because of this. This can also be a good thing, for example when the economy is not competit
by sek 15y ago
I the people lose trust in a country the currency goes down exactly because of this. This can also be a good thing, for example when the economy is not competitive and the government has always enough money to provide the basic needs. Not comparable to a resource.
Everybody thinks he knows about economics but does lack basic theories, i don't want explain in every discussion how inflation works.
PS: Please stop downvoting me just because you disagree.
- david927 15y agoI understand the benefits of monetary inflation in an expanding economy. I also think that "the spontaneous remonetization of precious metals is a Nash equilibrium," or in other words, inevitable. Read this, from 2006: Why the Global Financial System is About To Collapse http://johnlaw0.wordpress.com/2011/08/23/why-the-global-financial-system-is-about-to-collapse-2006 http://johnlaw0.wordpress.com/2011/08/23/why-the-global-fina...
- sek 15y agoI have not enough time right now to read this whole thing but i browsed it, there is enough stuff to argue with he mentions taxes and all the important elements but it sounds alarmist nonetheless. Maybe i have to take that back, but i have this problem very often when i argue about these things.
- david927 15y agoPlease have a read and let me know what you think. It might be alarmist but he makes a great argument.
- khafra 15y agoJudging by the last millenium of history, the inevitability of spontaneous remonetization is greatly exaggerated.
- david927 15y agoFirst, it has happened within my grandparents' lifetime.(Weimar Germany, for example.) Second, inevitability doesn't have a timeline. It could be in a thousand years or tomorrow; that's not the point. The point is: it is expected to happen at some point.