Odysseus

 
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  • in reply to: Debt Rattle Jul 17 2014: The Rise Of The Super Dollar #14078
    Odysseus
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    1. Make sure the money is backed by gold (otherwise it loses its buying power).
    2. Don’t let the government spend too much money it doesn’t have (otherwise it will cause havoc).

    Sadly, Ilargi, neither of these is necessarily true as stated.

    How much sovereigns can spend is directly related to the amount of available productive work.

    That can be a vastly different quantity than the amount of pretty yellow rocks near at hand. Money can be exchanged for goods and services. Pretty yellow rocks are no better of a good than any other.

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