Saturday, 23 October 2010

Inflationary banking makes it difficult to obtain property without being in debt

If a Government is able to print wealth in the form of fiat currencies, then all commodities will be measured with reference to it, it will be the unit of account, and hence the primary medium of exchange.

If the primary medium of exchange can be 'borrowed' from an inflationary bank then it is easy for people willing to face debt to obtain resources. Those that are unwilling to get into debt then face hardships, since they cannot gain property. At its most extreme, this type of banking results in a choice between obtaining property (and necessarily being in debt) and having nothing; we cannot both have (obtain) property and be free of debt.

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