Ending Fiat Money Won’t Destroy the State
When we ask ourselves the question, “Can states survive without fiat currency?” the answer is clearly yes.
When we ask ourselves the question, “Can states survive without fiat currency?” the answer is clearly yes.
Legal tender laws create special privileges for government money. That kills true currency competition and favors the state's monopoly power.
Monetary inflation results in a general rise in prices, often called "price inflation." But rising prices are not always "inflation." In any case, more government regs and subsidies won't help.
In its effort to patch together a working financial system out of postwar crises, the Federal Reserve would wildly exceed its mandate, flooding the world with dollars.
Thanks to vast regulatory powers, regimes have many tools and many advantages in propping up fiat currencies when faced with competition from other currencies.
After many months of covid stimulus, there's a bonanza in US pandemic profits. But unlike price inflation, these profits really are likely to be transitory.
When we ask ourselves the question, “Can states survive without fiat currency?” the answer is clearly yes.
The Fed admits inflation is a problem, so now begins the search to find a fix that doesn't involve a recession or anything else that might allow the economy to heal its malinvestments.
Thanks to covid shutdowns, declining productivity finally brought price inflation to the fore. But the world's governments have learned nothing and cling to the same inflationist policies.
Overall, at least 50 percent of the consumer price index in Japan appears to be government controlled, which is reflected in the significant growth of government spending on subsidies.