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"In the long run we're all dead" is a cop out, and is used to back up theories that can't withstand logical scrutiny. I see runaway inflation as a serious thre

"In the long run we're all dead" is a cop out, and is used to back up theories that can't withstand logical scrutiny. I see runaway inflation as a serious threat to the united states, and I think it is very possible. Here's a good take on the FED and it's relation to the great depression: http://mises.org/rothbard/agd.pdf http://mises.org/rothbard/agd.pdf All money is simply a barter system; money is a commodity that is traded that, there is nothing stopping and in fact many stores do have prices in dollars and euros, etc. So there is no problem with competing currencies, the problem you mention with taxes is easily fixed by specifying in what currencies your taxes will be payable in. Eventually we settle on 1 or 2 currencies, but if there was ever a problem there would not be legal reasons for creating a new one.

philwelch 17y ago
"I see runaway inflation as a serious threat to the united states, and I think it is very possible." Do you have any historical evidence that it's happened in our system or in other systems like ours? The main flaw I see in your argument is your conflation of mild inflation with runaway inflation. The kicker is, runaway inflation would happen just as readily even under a gold standard if major new gold sources are discovered, or if another major power sells their gold reserves. We have even less control over that risk than we have over the Fed. "All money is simply a barter system..." Yes, except you have to have a common medium of exchange that's widely accepted, and a situation without legal tender laws would eliminate that. The thing is, once you define what currency you accept taxes in and what currency legal judgments are determined in...you have legal tender laws by definition.
- dantheman 17y ago
  1. Your first point is incorrect, when a massive amount of gold is found there will be inflation -- but it won't be runaway, prices will quickly come to reflect expected future increases in the monetary supply whereas when the government prints it there is no limit. That is why people advocate tying it to something tangible. To limit their ability to inflate. 2. You can define that you accept taxes in the following currencies; and then when defining contracts you can specify what you will be paid in. The legal judgements would support that.

philwelch 17y ago

"I see runaway inflation as a serious threat to the united states, and I think it is very possible." Do you have any historical evidence that it's happened in our system or in other systems like ours? The main flaw I see in your argument is your conflation of mild inflation with runaway inflation. The kicker is, runaway inflation would happen just as readily even under a gold standard if major new gold sources are discovered, or if another major power sells their gold reserves. We have even less control over that risk than we have over the Fed. "All money is simply a barter system..." Yes, except you have to have a common medium of exchange that's widely accepted, and a situation without legal tender laws would eliminate that. The thing is, once you define what currency you accept taxes in and what currency legal judgments are determined in...you have legal tender laws by definition.

dantheman 17y ago
1. Your first point is incorrect, when a massive amount of gold is found there will be inflation -- but it won't be runaway, prices will quickly come to reflect expected future increases in the monetary supply whereas when the government prints it there is no limit. That is why people advocate tying it to something tangible. To limit their ability to inflate. 2. You can define that you accept taxes in the following currencies; and then when defining contracts you can specify what you will be paid in. The legal judgements would support that.