the government can only always pay if it's in bed with the currency issuer
Discussion
the government is not the best payer of dividends
that's what high performing entrepreneurs do - spot inefficiencies and set up to leverage them, until the margin declines as everyone follows their lead
Entrepreneurs are risky.
the security of government is exceptionally risky over a long timeline, they waste money and hike taxes constantly for all kinds of reasons, the growth of government into totalitarianism was a direct result of implementing the central banking system, there can be no income tax without monetary surveillance and control of the school system
there is a lot more moving parts to think about than just the money
taking the power of money issuance out of the hands of banks and government changes everything for the better, for the majority of humanity, and it was seized specifically to increase the power and increase the difference between the top most of the economic ladder and basically strip out all the rungs all the way down as far as possible and further if possible, until eventually people burn down parliament
It will be, in a way. Look at who's got some of the biggest stacks. They can join together with the Fed and control the supply.
what role does the Fed have in the absence of a fiat monetary system?
Controlling gold and Bitcoin and underwriting stonks and government debt.
you think that anyone can control bitcoin after the clear history of the last 10 years of attempts to wrest control of it?
then supply is fixed, and if it is hyperbitcoinization then that means no more cozy relationship between money issuer and government
because which government is going to concede to the others to create a cartel big enough to alter the issuance regime?
and isn't that also going to mean bitcoiners abandon that governmentcoin fork?
The efforts were not about using off-chain transactions to manipulate the exchange price by removing information, like they did with gold.
that still depends on them having fiat as the primary money, which is not the case after it fails and enough adoption has led to people generally preferring bitcoin and lightning etc
their control depends on their ability to dictate the interest rate, which should be dictated by the actual market in credit, in a full reserve system
fractional reserve is a fraud, it is counterfeiting, it is a hidden tax, and eventually, like all scams, will become widely understood and any purveyor of it will be shunned and prosecuted
Yeah, fractional reserve is dead.