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There is plenty of corruption and income inequality regardless of money printing velocity. What would be the causal link between them? There was huge corruption
by tpm 3y ago
There is plenty of corruption and income inequality regardless of money printing velocity. What would be the causal link between them? There was huge corruption in former Eastern/Soviet Block countries where prices were more or less stable. There was huge inequality in gold-standard feudalism.
- hayst4ck 3y agoRay Dalio's video explicitly explains the causal link between printing money and corruption. Printing money (as a fiat reserve currency) implies the decline of rule of law and therefore corruption, but corruption does not imply that money was printed, nor does the lack of printing money imply low corruption.
- tpm 3y ago> "corruption does not imply that money was printed, nor does the lack of printing money imply low corruption." If corruption is independent of money printing, "Printing money directly fuels corruption" is not a true statement.
- hayst4ck 3y agoI think if you draw out the logical statements I've made one implication correctly. I claimed A implies B is a true statement and that if A implies B is true, that doesn't mean B implies A or ~A implies ~B. (although ~B does imply ~A if A implies B). True: A implies B: Printed money implies a rise of corruption ~B implies ~A: Low corruption implies money wasn't printed False: B implies A: A rise in corruption implies printed money ~A implies B: Not printing money implies low corruption I did not say A and B are independent, I said A implies B, not A IFF B.