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vox kadavergehorsamkeit
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Monetary Theory: Where Is the Flywheel and other Intellectual Ponderings and Squabbles - Jesse - Le Café Américain

To answer the question: the constraint placed on the issuance of paper money would be the rate at which the economy is growing. Simple. Stick to it and it works. Gold, just like paper, has been abused countless times by the monetary authorities. It is not what is used as money so much as how it is managed....Gold presents problems that paper does not. If new gold does not keep up with growth, you run into one type of imbalance. Or if natural disaster strikes or war is declared, gold does not offer the flexibility of paper to cope with the changing landscape. Far worse for savers is when an abundant new source is discovered. Silver had to be demonetized in 19th century America and Phillip II of Spain had to default 4 times on Spain's debt in 39 years because of all the new gold flowing in from the new world.....Now think of all the new companies being set up to mine asteroids. Just guess what they will be coming back to Earth filled with and imagine what that will do the price. And that says nothing about the roughly 17,500 times more gold that is in the oceans than has been mined throughout history....The facts are what the facts are. We ignore them at our own peril.

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Beginning of the headline :Money is power. And so like those other loci of power, politics, tribalism, and religion, the discussion can sometimes obscure rather than illuminate the facts and issues, such being the emotional state of people. The discussion can sometimes become very heated, and very particular over the finer points, in a vacuum. A system becomes rigorous and hardened by usage, and effete and elaborate the longer it is parked on the bench. I am thinking of course of the recent case of Krugman v. Sachs... Read More

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