Post
Topic
Board Economics
Re: Martin Armstrong Discussion
by
iamnotback
on 02/04/2017, 22:55:44 UTC
Paper currencies have a long track record of failure. This failure is due to the inherent flaws of mankind rather then a fundamental problem with paper money.

We choose to embrace things like fractional reserve lending, defect spending, and unfounded entitlements all of which lead to fiscal instability and undermine the currency system leading to eventual failure.

Gold and Silver are simply attempts to take human weakness out of the picture by tying the concept of money to something that cannot be easily forged or mass produced. This works to a degree but it historically also ultimately fails to restrain us from eventually debasing and destroying the currency system. We see this in Rome and also in our recent past as we were not long ago on a gold standard.

Once again you ruin your analysis by conflating morality and opportunity cost. Morality is your hammer and everything is a nail. Humans aren't doing everything they do because they are weak. They are acting rational from an opportunity cost analysis. Tragedies-of-the-commons are the result of rational localized actions in which the aggregate result is irrational. Morality is not a solution, because it is never absolute truth and is always manipulable as well. Gold is an inferior measure of value because for example regional distribution/control of mines is not equitable or non-manipulable (well everything fungible is manipulable as I explained in my recent mini-essay). I explained in that essay that I am working on a solution that will supercede morals and absolute values.

You are correct that voting would make Bitcoin another fiat system. But it isn't because humans are weak. It is because of the economics of voting. See my prior post.