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Hey #asknostr - I have a Bitcoin / Austrian Economics fundementals question.

I get the hardmoney aspect of Bitcoin, 21million hardcap etc etc etc. preaching to the converted here.

Governments printing money, devaluing currency -> BAD. I get all that.

But then a pandemic or world-war comes along and the economy grinds to a halt or interests rates skyrocket... we've seen Govts print truckloads of money to "get us out of the hole and keep the economy going".

What would've been the solution if we had hardmoney like USD-backed-by-BTC/Gold ? We couldn't have printed our way out of the economic hole because of the 21Million hardcap or the grams-of-gold-per-dollar.

Peter Zeihan, who isn't a favourite of mine, raises some interesting points about the amount of currency available when economic activity picks up

about 2:48 into this video

https://youtu.be/-rANSHB4q1Y?t=166

Maybe nostr:npub1a2cww4kn9wqte4ry70vyfwqyqvpswksna27rtxd8vty6c74era8sdcw83a could share her views?

Thanks so much.

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Discussion

Sovereign Matt 2y ago

There would have been lockdowns or a world war. Because governments would be forced to have monetary discipline and spend their tax revenue responsibly.

Sovereign Matt 2y ago

Would *not have been

Brunswick 2y ago

Fiat was designed to allow government to tax through inflation. It only works if people accept it as payment. Regardless if fiat is still law, when people begin pricing their goods and services in hard money, the price in fiat will have little meaning and inflation won't work. If fiat cant be used to tax with money manipulation, governments will need to go directly to the people to collect value by way of direct taxation. If the government can convince people to contribute to the pandemic or to the war, then they have real consent of the governed rather than govenance through deception.

Wolfgang I’m A Deus 2y ago

Ahh yes, that reminds of the war bonds governments used to issue.