/biz/ - Business & Finance

[Anonymous No.12947533]

Teach me about fiat currency and inflation /biz/

If a venezualens swapped all of their paychecks when they were worth something, would they be rich or atleast living well instead of eating cats?

[Anonymous No.12947549]

>>12947533
>"When left to themselves people of a given geographical area settled upon a durable luxury commodity, usually gold or silver, to use as money. Because money is a store of value as well as a medium of exchange, people saved part of their gold income rather than spending it all. This gold was often stored in the vaults of a local goldsmith, the precursor of the modern banker, for safekeeping. The depositor received a receipt that entitled him to an equal quantity and quality of gold on demand from the goldsmith. At some point the goldsmith realized that there was no reason he could not loan out some of the gold for interest as long as he kept gold on hand sufficient to meet the fairly predictable withdrawal rate. After all, he simply promised to pay on demand, not hold the gold as such. Better yet, be could simply issue more receipts for gold than he had gold and the receipts, renamed notes, could circulate freely among the populace as money."

[Anonymous No.12947557]

>>12947549
>"However, he soon found that there was a definite limit set on this process by reality. Not all the extra notes issued circulated forever among the public. The rate of note redemption began to increase rapidly as the receipts passed into the hands of people unfamiliar with his reputation and especially when competitive goldsmiths, always eager for more gold reserves, came into possession of his notes. To prevent a disastrous run on his gold reserves, note issuance had to be kept within bounds. But the spending power of over-issuance was a grave temptation. Especially relished was the power over governments, industry, and merchants that the miraculous loan power of the goldsmith could obtain. Many succumbed to temptation, overextended themselves and brought ruin to their depositors, while others slowly became wealthy bankers by pursuing conservative loan policies."

[Anonymous No.12947589]

>>12947557
>At this point, according to economic "science," Central Banks are instituted to protect the public from periodic financial catastrophe at the hands of unscrupulous fractional reserve bankers. Nothing could be further from the truth. Central Banks are established to remove the limitation on over-issuance that reality places on competitive banking systems. As early as ancient Babylon and India, Central Banking, the art of monopolizing the issuance of money, had been developed into a perfect method for looting the general public.

[Anonymous No.12947616]

>>12947549
>>12947557
>>12947589

shut the fuck up faggot

[Anonymous No.12947643]

>>12947616
OY FUCKING VEY I GOT CAUGHT OY VEY

[Anonymous No.12947653]

>>12947533
the venezuelan government forced people at gunpoint to hand over anything ov value
recently, that included food or anything used to produce it
the government goons knock on your door and force you to hand over your dried goods stash
by law, prices are fixed at amount X per kg of rice
"cmon pablo, heres amount X in bolivar, we didnt rob you, we bought it from you at the price the government decided food should be wroth. viva la revolución and death to traitors who hide food!"

it really is that bad and its a perfect example of socialist mismanagement

your question can not be answered because venezuelan citizens are not actively participating in a free currency market. they dont have the option to hold foreign currency, by law

[Anonymous No.12947668]

>>12947616

[Anonymous No.12947689]

>>12947616
>>12947668

[Anonymous No.12947709]

>>12947689
It's fine to pay debt with debt.
-modern money theory

[Anonymous No.12947719]

>>12947616
OYY VEYY SHUT IT DOWN REMEMBA THA 6 GORILLION

[Anonymous No.12947734]

>>12947616
Have another bump schlomo

[Anonymous No.12947736]

>>12947668
The US used to be so based what happened

[Anonymous No.12947740]

>>12947616
What the fuck did he mean by this?
>>12947549
>>12947557
>>12947589
What book is this from?

[Anonymous No.12947772]

>>12947533
Read the below link carefully!

https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy

Also look up 'Dirty float' Its a forex thing
THIS>>12947709

[Anonymous No.12947845]

>>12947616
this

[Anonymous No.12947846]

>>12947736
demographics

[Anonymous No.12947991]

>>12947736
The war of 1812

[Anonymous No.12948702]

>>12947736
In 1933, United States of America declares bankruptcy.

Executive Order 6073
https://en.wikisource.org/wiki/Executive_Order_6073
Executive Order 6102
https://en.wikisource.org/wiki/Executive_Order_6102
Executive Order 6111
https://en.wikisource.org/wiki/Executive_Order_6111
Executive Order 6260
https://en.wikisource.org/wiki/Executive_Order_6260

>>12947689
>Federal Reserve: We can't pay the store value gold the money we gave away that says it PROMISES to give you on demand anymore LMAO, so I'll make it a criminal to have those.
People: Hey wait! My mon-!
>Federal Reserve: But hey! You can have these new super cool coupo- *ahem* money that makes the same PROMISES that we'll pay for stuff!
People: What happened to the all the gol-!
>Federal Reserve: These new notes are backed by 100%, grade-A, trust! Nothing is better than trusting your fellow man!

[Anonymous No.12948863]

>>12947736
In 1933, United States of America declares bankruptcy.

Executive Order 6073
https://en.wikisource.org/wiki/Executive_Order_6073
Executive Order 6102
https://en.wikisource.org/wiki/Executive_Order_6102
Executive Order 6111
https://en.wikisource.org/wiki/Executive_Order_6111
Executive Order 6260
https://en.wikisource.org/wiki/Executive_Order_6260

>>12947689
>>12947736
>Federal Reserve: We can't pay the store value gold for the money we gave away that says it PROMISES to give you on demand anymore LMAO, so I'll make it a criminal to have those.
People: Hey wait! My mon-!
>Federal Reserve: But hey! You can have these new super cool coupo- *ahem* money that makes the same PROMISES that we'll pay for stuff!
People: What happened to the all the gol-!
>Federal Reserve: These new notes are backed by 100%, grade-A, trust!

[Anonymous No.12948958]

>>12947616
Funny how useful idiots desperately cling on to their beloved ponzi like agent smith the minute someone is about to pull the curtains open