GirlChat #452711


and a small note on currency / monetary policy

Posted by lgsinmyheart on 2008-September-26 11:35:55 EDT, Friday
In reply to Re: and this is the reason... posted by Dissident on 2008-September-26 10:29:53 EDT, Friday

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1) I don't support government monopoly on currency minting.

2) I don't support less-than-full-reserve banking.

The first limits the ability of the markets to function properly and to take partial blows to the system; the latter creates inflation, distorts the benefits and costs of savings and investments and the relative returns rates of the factors of production. This is no small distortion - if unchecked for long enough, it will alter the whole economic structure, which I think has happened already with the "developed" West.




LGsinmyheart


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