4 ms·

Fiat money seems like the result rather than the cause. As nations start to draw down their gold/asset reserves, it makes sense to switch to a fiat currency.

Fiat money seems like the result rather than the cause. As nations start to draw down their gold/asset reserves, it makes sense to switch to a fiat currency. Clearly the cause is too much money out and not enough money in to government coffers rather than fiat.

WalterBright 4y ago
Governments prefer fiat money because they can print all they want without raising taxes. And that's what they've always done with fiat money, going back to the invention of money. It always results in inflation. The reason nobody believes this is because of extremely effective propaganda emanating from every government that prints fiat money. The "Putin Price Hike" is the latest in a long string of lies about what causes inflation. (Inflation was at something like 7% before Putin's War started.) Of course, "the speculators, gougers, and profiteers" are always blamed, too.
- SamoyedFurFluff 4y ago
  I think we’re getting into conspiracy theory here. You’re arguing that $fact, and the only way $not-fact is argued is propaganda. This means any person who might have a reason to argue for $not-fact is by default a propagandist. There’s no productive conversation to be had from this.
  - WalterBright 4y ago
    The productive part is realizing you've been flim-flammed. There's no other explanation for the government narrative to completely avoid the truth. Every fiat money government does this - it's not a conspiracy, it's just that it's in their best interests to blame inflation on speculators rather than their own profligate printing of money. I've presented many facts to support this. Economists know it, too. Study it and you'll see for yourself. Another part of the flim-flam is the government is always trying to promote the idea that inflation is good for the economy. Read their explanations. It's all nonsense.
- aeternum 4y ago
  Right but it is government spending beyond that nation's means that is the root cause. The Greek debt crisis was a great example of this, since they couldn't directly control the printing of the Euro, they were forced instead to siphon money directly out of citizen bank accounts to service the national debt. You could imagine the same thing happening with a nation on a gold standard. In fact the US did something similar in requiring all citizens to deposit their gold holdings. Inflation of a fiat currency is just one of the many ways in which governments can 'tax' citizens to pay for government spending.

WalterBright 4y ago

Governments prefer fiat money because they can print all they want without raising taxes. And that's what they've always done with fiat money, going back to the invention of money. It always results in inflation. The reason nobody believes this is because of extremely effective propaganda emanating from every government that prints fiat money. The "Putin Price Hike" is the latest in a long string of lies about what causes inflation. (Inflation was at something like 7% before Putin's War started.) Of course, "the speculators, gougers, and profiteers" are always blamed, too.

SamoyedFurFluff 4y ago
I think we’re getting into conspiracy theory here. You’re arguing that $fact, and the only way $not-fact is argued is propaganda. This means any person who might have a reason to argue for $not-fact is by default a propagandist. There’s no productive conversation to be had from this.
- WalterBright 4y ago
  The productive part is realizing you've been flim-flammed. There's no other explanation for the government narrative to completely avoid the truth. Every fiat money government does this - it's not a conspiracy, it's just that it's in their best interests to blame inflation on speculators rather than their own profligate printing of money. I've presented many facts to support this. Economists know it, too. Study it and you'll see for yourself. Another part of the flim-flam is the government is always trying to promote the idea that inflation is good for the economy. Read their explanations. It's all nonsense.
aeternum 4y ago
Right but it is government spending beyond that nation's means that is the root cause. The Greek debt crisis was a great example of this, since they couldn't directly control the printing of the Euro, they were forced instead to siphon money directly out of citizen bank accounts to service the national debt. You could imagine the same thing happening with a nation on a gold standard. In fact the US did something similar in requiring all citizens to deposit their gold holdings. Inflation of a fiat currency is just one of the many ways in which governments can 'tax' citizens to pay for government spending.