4 ms·

In actuality fiat currency makes everything a pyramid scheme and allows the government to spend the wealth of the nation in whichever manner it deems fit, since

In actuality fiat currency makes everything a pyramid scheme and allows the government to spend the wealth of the nation in whichever manner it deems fit, since the value of inflation accrues disproportionately to the asset owner (aka people who were there before you, aka pyramid scheme) vs. the earning productive class.

rat87 2y ago
Inflation benifits the borrowers. Fist currency makes thing run smoothly when well managed, alternatives such as the gold standard have proven to be much worse that's why everyone switched
- darioush 2y ago
  This is true but the government is the biggest borrower, who then immediately spends the funds by "awarding" contracts, obviously they don't have any corruption or favoritism when they do this, nor do they place trades using their insider knowledge of how the funds will be appropriated, which will definitely never impact the average citizen borrower (who is probably in need of borrowing money to buy a house, which is so expensive because... inflation)
- dpc_01234 2y ago
  People didn't switch because of stability problems with gold standard. That's just propaganda and fiat apologetics. As a matter of fact gold standard seen fastest and most stable growth in the history of human kind. Gold is hard to transport, secure and divide so ledgers were used instead which allowed government to just end goal standards to fund WW1 efforts, which also shows the magnitude of destruction and statist largese this enabled. I recommend Broken Money for history and analysis how it came to be that things are how they are.
  - rat87 2y ago
    They literally did. They didn't want to go off the gold standard but they did because there was no choice and soon after each country went off the gold standard they started recovering from the great depression. https://www.reddit.com/r/science/comments/18tl490/abandoning_the_gold_standard_helped_countries/ https://www.reddit.com/r/science/comments/18tl490/abandoning... The gold standard caused financial crash after crash
- ffsm8 2y ago
  Technically true but highly misleading the borrowers that just have a mortgage for their own house while working for a paycheck don't really benefit from it. Sure, their debt has been reduced, but their wage too. And inflation is generally lower then interest, so that benefit gets wiped too. The by far biggest winners with inflation are the people that own a lot of assets.

rat87 2y ago

Inflation benifits the borrowers. Fist currency makes thing run smoothly when well managed, alternatives such as the gold standard have proven to be much worse that's why everyone switched

darioush 2y ago
This is true but the government is the biggest borrower, who then immediately spends the funds by "awarding" contracts, obviously they don't have any corruption or favoritism when they do this, nor do they place trades using their insider knowledge of how the funds will be appropriated, which will definitely never impact the average citizen borrower (who is probably in need of borrowing money to buy a house, which is so expensive because... inflation)
dpc_01234 2y ago
People didn't switch because of stability problems with gold standard. That's just propaganda and fiat apologetics. As a matter of fact gold standard seen fastest and most stable growth in the history of human kind. Gold is hard to transport, secure and divide so ledgers were used instead which allowed government to just end goal standards to fund WW1 efforts, which also shows the magnitude of destruction and statist largese this enabled. I recommend Broken Money for history and analysis how it came to be that things are how they are.
- rat87 2y ago
  They literally did. They didn't want to go off the gold standard but they did because there was no choice and soon after each country went off the gold standard they started recovering from the great depression. https://www.reddit.com/r/science/comments/18tl490/abandoning_the_gold_standard_helped_countries/ https://www.reddit.com/r/science/comments/18tl490/abandoning... The gold standard caused financial crash after crash
ffsm8 2y ago
Technically true but highly misleading the borrowers that just have a mortgage for their own house while working for a paycheck don't really benefit from it. Sure, their debt has been reduced, but their wage too. And inflation is generally lower then interest, so that benefit gets wiped too. The by far biggest winners with inflation are the people that own a lot of assets.