Thread: Fiat money
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Old Nov 13, 2009, 01:12 pm   #15 (permalink)
Thanatos
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Location: New Orleans
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As soon as you said Austrian school I stopped reading.

The thing is basically everything they believe is wrong. Societies can use fiat money and stay stable for extended periods of time. When a country crashes it's money supply like that it's either because of a war or a corrupt dictator. .

Boom-bust cycles are not caused by fiat money. We had them before fiat currency. Boom-bust is a feature of capitalism itself or anything that remotely resembles capitalism; ecosystems develop periodic oscillations as well.

Oh, but I have bad news. Or good news. Production is way down and demand for electronics continues to be high.

Barrick shuts hedge book as world gold supply runs out - Telegraph

Tying our economy to fluctuations in production would have been an interesting decision a few years ago. Our economy would be really deflated which has it's positives and negatives. The tech industry would be even more miserable.

As I recall the other thing that pissed me off about the Austrians is they assume production is predictable. Lies.


I think it goes without saying the any suggestion to invade Canada is mind-numbingly stupid.
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