/biz/ - Business & Finance

>>11898455
Do you really think paper money is a desirable system - especially given our short parliamentary terms? In the UK, it's 5 years, in the US it's 4. What politician could resist promising more govt. spending (funded by issuing debt), knowing they will never have to deal with the consequences because they can just kick the can down the road and pass the problem on to the next sucker? Not to mention the conflicts of interest with private banks being able to multiply these loans 10x via fractional reserve.

The theory behind paper money makes sense: govt can create new currency to stimulate the economy during slow times and then pay it back during boom times. In reality, it hasn't worked out like that. Boom and bust is more intense since the Federal Reserve Act and government debt to GDP just keeps getting bigger. The conspiracy theorists are right about hyperinflation, even if they are often wrong about timescales.

>Both high inflation and very low and negative inflation can be just as damaging
Yes, but gold, bitcoin etc. is inflationary. It might not be perfect but it's better than hyperinflation and is at least sustainable in the long run.