by metatron 34 Replies latest jw friends
He's an advocate of legalizing alternate currency, to compete side-by-side with FRN. Presumably, a new legal currency would be commodity based, in some fashion, giving us savers a place to store our purchasing power, while the FRNs are inflated into oblivion...
very interesting.... kind of like some 3rd world countries that have their own currency but on the street they prefer USD or Euro or some other "hard" currency
In a truly democratic system rent seekers will simply not exist.
In a truly capitalistic system rent seekers will simply not exist.
Conservatives seem to want to capitalize their profits and socialize their losses
hoser,
Yes, I guess the same concerns are at work. In Zimbabwe , the FRN or Euro are viewed as preferable when the Zimbabwe dollar (now suspended due to hyperinflation) is the alternative.
The thing is, the issues that torpedoed the Zimbabwe dollar are still very much real and in play for the FRN and the Euro. There's nothing 'hard' about the FRN except a military that can topple foreign governments and the US Government's willingness to use it.
Zimbabwe's economic problems were/are caused by
from wiki
Mandatory confiscation of white farmland was affected by continuous droughts, as well as a serious lacking in inputs and finance, leading to a sharp decline in agricultural exports, which was traditionally the country's leading export-producing sector. [43] As a result, Zimbabwe experienced a severe hard-currency shortage that led to hyperinflation and chronic shortages in imported fuel and consumer goods.
basically the government kicked the most productive people out of the country and they weren't producing enough exports so they ran up a trade deficit. This is what caused the inflation problem
Yes, I speak in a very general sense - the creation of money divorced from productive economic activity...
