Quote from: dinofelis on April 20, 2017, 04:26:36 PM

It is not a cheat to debase money. Money is not a value holder. It is a promise fluidifier, and the debasement serves for it to be spend. The 6% inflation tax is nothing compared to all other taxes by the state. The whole idea is that money is not a long-term value holder, because otherwise it would be hoarded, which is explicitly NOT the idea. Money should go around quickly, between being earned, and being spend. Any amount of money should lose value in the long term, and be a motivation to spend it. Money is not a store of value.

The whole sound money doctrine doesn't take into account the fact that money then becomes an investment asset, with all the volatility that comes with it, and renders is essentially useless as a (constantly decreasing) unit of account. If the devaluation rate (inflation rate) is known, there's nothing wrong with it, because it is taken into account when considering exchanges at different times. It is just an exponential correction factor. But at least, devaluating money cannot be used as a long term store of value, and will not be hoarded, because that's not the function of money.

It is true that the resulting seigniorage is lucrative for the privileged in the money business, but it is less so, than states taxing people around 50%, and it serves a purpose, namely getting money go around, and not being hoarded.

Money is a CHEAT if its rate of issuance (never mind the state taxation, it is not due to money but due to government debt that needs taxation to service the debt, not because of money itself directly speaking) exceeds your rate of income growth. Anything more than that, i.e. borrowing at interest to spend is the result of financial mismanagement. Spending money increases the money velocity, thus increasing credit growth, thus increasing debt and interest burden, thus hastening the devaluation of fiat value. To say money is made to be spent is like saying we are supposed to be cheated.

Because the Rothschilds are not in (fiat) banking and are not on the receiving end of the seigniorage flux ?

The rothschilds use fiat to control the people's labor, and with credit + interest slowly shifts away the people's property (house, land, car, public infrastructures, public utilities, etc) into their own. I print lots of monopoly money --> I tempt you to take loan with interest payable with my monopoly money --> you fail to pay --> I take your property away. I don't care about my monopoly money (it's fake anyway). I only care about your property. I don't care if my fiat fails because I can create new currency. But the properties I get from you, I keep.