Replying to Avatar FernandoTheKoala

I guess our disagreement is that you believe that only government can provide this things, while I believe that the free market is also capable to provide this things
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Satosha 11mo ago

If it is left to free market than eggs will be ten dollars a piece :-) .. and wheat shall be 100 dollars a kilo .. why ..because private enterprise works with profit motivation .. profit is direct outcome of scarcity - point in case is #bitcoin - you know very well :-)

Commodities are the exact opposite of scarce mindset .. we want them abundant .. in a scarce mindset ven water and air will be monetised ..

This is the reason , when it comes to inflation , no one cares for inflation in gold or homes or yatchs .. the CPI is computed on a very narrow basket of commodities .. bread , milk , eggs etc ..

Why ? Because if poor people didn't get food and clothes ..they show up on streets .. and rightly so ..

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Satosha 11mo ago

Btw .. it is not something I have discovered.. the reason Nixon was forced to unpeg dollar from gold was exactly the same .. people can still adjust to high prices of commodities.. but they can't take in massive swings in the prices ..

Gold pegged currencies - which follow free market hypothesis - are very inefficient in controlling price swings .. that is exactly why Fed function is very important .. not to say Fed can't be improved .. there are ton of opportunities to improve ... But the function itself can't be eliminated