@halfthink >everyone who disagrees with liberalism strongly is a larper

I'm an ancap, nigger.

ancaps are hyper liberals

they triple down on liberalism because they don't know any alternative way

Depends what you mean by liberalism.

@halfthink. Fight me

@My Preferred Pronoun Is Sama run straight faggot.

@halfthink. No u

@Vril-Gesellschaft so how does banking work in your system?

Ok back on topic. Fiat economy based on ability to produce

@halfthink similar to how it did in the Reich

there's interest free loans, only real interest aspect was when dealing in certain trades with other countries

govt makes profit on loans from deflation caused by loans boosting production in aggregate (for example loans for women to have kids)

Elaborate on what the currency is backed by.

If anything

it's not backed in the sense of like "I will give you 1 unit of production for this" but rather its value is that of the marginal rate of production

So it's just a regular fiat currency?

this doesn't make it fiat though, because fiat currency is when your currency value depends on arbitrary non physical processes

Military is a physical processes

it's not purely your lack of a physical medium of exchange to move it into

You can make a fiat out of that

yes, but we're talking about something relevant to economics

What are you doing with the quantity of base money?

So it's based on an abstract mathematical concept which can be adjusted based on the intrinsic value placed on the goods and services created to grow the economy

central bank controls currency printing based on the production rate

Yes?

Intrinsic value is a spook.

K ima step back and just read. 2 much dog piling

@GoldenPhoenix no, because the value placed on goods is relative to the fraction of productive output it can purchase

@Vril-Gesellschaft so will the goal be to keep purchasing power constant?

the goal would be to create steady deflation over time

and also keeping consumption high during this period

So why print any money at all? Why not keep it constant?

But that value is constantly fluctuating, meaning there's no set value to the currency and is therefore backed by the good faith of the state.

you don't have to print, quantity of money affecting demand is just one aspect, you can change money demand keeping money in circulation constant

interest free loans would create inflation though if not controlled, so it's a bit more complicated

the production effect it creates though would reverse any inflationary effect that loaning money in circulation creates

and over time loan demand for interest free loans would decrease as living standards and wages increase

You do realize that inflation is a good thing in a market, right?

in a fiat market only

Monetarist nonsense. You can't print your way to prosperity.