Message from @Benis
Discord ID: 527252494347141121
Largely driven by the lack of money supply.
It was a basic "spent more than you actually had"
Yes, which is not a problem of material currency
Fiat currency is literally worthless
You print it to meet demand and in the process, it devalues to nothing
No it isn't because it has the power of the state backing it
Which is why fiat currencies are always tied up in corruption and bullshit
Hyperinflation only happens when you do something retarded or are beholden to foriegn pressure.
Which is, oh let me see, always.
You can't hyperinflate a material currency
Not realistically
No, not always. I mean specifically in cases like Weimar Germany.
Every economy going back on the gold standard has an economic crash.
This happened all across the world after WW2.
I wonder why, going from debt treadmill fiats to actual money with value
It's because sovereign fiat is far superior for a good economy
So what's the value of a fiat.
What is the actual value
How much does cotton paper and ink cost?
It's like the penny costing more money to mint than it's worth because reasons
The value in fiat comes from the state. It's what the state does business in, and it's what the state demands in taxes.
What is the value
What is the actual value
What is the actual value of gold?
How much?
Let's say 1 ounce
Also, the worth of material currencies is set by the fact it's literally worth a fixed amount of X, not as some algorithmic abstraction of state power and enforced value.
State power isn't an abstraction
It absolutely is
Don't pay your taxes and see how abstract it really is.
What's the exact ratio of state power between the US and UK?
What gives it the X value? How is the worth of the material calculated, I think is the question, at least the one I have
To be clear I'm not on one side or the other I just want to clarify
Worth is subjective, obviously. Lets say for instance that 1 ounce is 1 gold note. the worth of the gold is then, obviously, based on fractions or multiples of the base unit.
So the worth of a given weight of X is then basic division
Gold is no less subjective than fiat.
How would we deicide how much of X is worth how much of currency in the first place?
Fiat has no logical basic unit
You just decide X is 1 monies.
Yeah, gold's value is subjective as well.
Benis, you consistently drink the retard juice