A Fiat currency is never manged correctly because human being are not perfect. Fun fact, the USA dollar is currently the long lasting fiat currency. Before this, they had not lasted more then fifty years. Yup, they are really well managed.
Originally Posted by Six
You gave false reasons for why a PM is bad as a currency. AKA there is not enough to go around. The response is that the value of the money adjusts automatically to how much of it is in the economy. You have a basic misunderstanding of the nature of money. For the average person devaluing wealth, aka inflation or printing money out of thin air, means that their saving are worth less then it was before. This is supposed to be countered by their debts being less as well but this is relient on them making more of the money that is being printed. How is this good for anyone outside of the govenrment who just wants to pay off their debt with inflated cash, so they can borrow more, to bribe citizens with?
With a PM as a currency as the population increases, or the demand for capital increases, the value of items or services would drop, the value of your saving would increase, but if your heavily in debt, like the government is most of the time, the value of your debt would increase as well. I can see why the govenrment does not want deflation, but as someone that would like to be able to save money and invest, I would love to see some.
Also Bush and a republican congress signed an unfounded 7 trillion dollar medicade prescription plan? Where do you think they where planing on getting that?
Oh I see, you think you can have Fiat without a government going out of control with it. Would you please show me just one historical example of a nation that embraced fiat where it did not collapse do to inflation?
PS Its actually part of the Constitution that we have to use silver or gold. This was cause by the failed fiat currency called the continental.