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Bishop said:
if the proposal i suggested were implemented and adhered to, it would be able to accomplish everything that the gold standard could accomplish - minus the chronic and debilitating nominal price volatility that was the case under the gold standard.
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I say:
I think that is a big statement. I do think your idea is novel, and worth checking out, but all I can do is cringe and laugh when we say we are going to let the government hold the "items of value" while the laborers get to hold worthless paper. I have no problem with fiat if it has a solid "price index relationship" with (something) of tangible value. MY point is actually quite simply that these types of currencies ONLY benefit banks, and large multi-national corporations, (and of course, the government, since they are making a profit as the middle man via inflation) and the RISK involved with adopting them ONLY to benefit them, is not worth risking the economic liberty of all citizens.
I want to keep the economic purchasing power reserve, in the PEOPLES hands, not the banks and the corporations, as they are the ones selling EVERY country out in EVERY CASE IN HISTORY.
Our system was designed by people like J.P. Morgan, Glass, Stegall and others, with a shrewd eye towards benefitting the government, and what runs it, banks and corporations.
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Bishop said:
you simply chose to cast that aside, touting "who says they're going to follow the law?".... well shit, you can apply that logic to everything from spending, to war, to education, to whatever else - and that's an entirely different debate and has little to do with fiat vs. gold.
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I say:
I didn't mean to seem that way Bishop, I was simply stating that if it is even "proposed" under the two-party system, you know it will be corrupted from the ground up. If there was a party with this system of economics as their platform, perhaps they could carry this to fruition reasonably, but as of the bi-partisans doing? I don't think it would be worth the effort, since it would be corrupt from the start.
I think you have a solid idea on how to limit real inflation in a fiat based system, but there are a lot of real world variables that would need to be "wargamed" to see what impacts it could have, such as excess and shortage of fiat during certain events. If a shortage were to occur, which government usually arranges, what steps would be the next logical progression to reconcile the shortage?