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You wouldn't want a central authority to control the size of your money supply this would certainly lead to abuse oppression and a dystopia.
by georgeplusplus 4y ago
You wouldn't want a central authority to control the size of your money supply this would certainly lead to abuse oppression and a dystopia.
- kazen44 4y agobut in the end, an authority (usually centralised) does actually control the money supply. This is simply the case because our economic system is based around the idea that someone will punish those who do not play by the rules of this system, otherwise we would not even have any kind of financial system to speak off. Money is only worth something because of the rule of law, and the rule of law is only worth something because (central) authorities have the means the enforce the law (usually thanks to the monopoly on violence/imprisonment).
- georgeplusplus 4y agoI am referring to the usa and creation of money supply. As another person pointed out one entity does not control the supply of money. The private banks are responsible for loaning(creating) new money. The fed just ensures those banks have the means to do so if market forces warrant it. Although I agree with your point, a large imposing centralized force will ultimately lead to a controlling singular entity over time in such a system. But won't go sk far to say thats the way it has to be.