Money is also Perishable – Debasement & Devaluation Easier than Taxing or Defaulting
QUESTION: Martin; Why in the world anyone would invest in government debt when they all default in the end?
GH
ANSWER: Honestly, most people are oblivious to the fact that government always default in modern times. Jean Baptiste Say took the position that a rational businessman will never hoard money because of inflation and he will promptly spend any money he gets “for the value of money is also perishable.” (A Treatise on Political Economy, Book I Chapter XV; 1803 id/138–9). Before modern times, money was ALWAYS debased or devalued as a means of paying expenses. It was easier to do this even under using metal for coins than to tax or borrow.
In the modern era, the Princes of Europe began to borrow money and quickly learned to imprison and default on their bankers.It was Edward I of England who borrowed from the Jews and when he could not repay, he suddenly discovered they were Jewish and banned them from England while not allowing them to take property.
Honestly, it is just insane. They do not do their research and governments are always responsible for creating wars and destroying the savings of the people. Even Adam Smith in his 1776 Wealth of Nations expressed it best.
We are just fools. We insanely believe that we can replace one politicians with another and something will really change. The ONLY possible way to achieve change is to change the very system of how government functions. Until we are prepared to do that, suck it up for your future belongs to the madness and corruption of politicians.
