{"id":55153,"date":"2020-09-24T09:07:32","date_gmt":"2020-09-24T14:07:32","guid":{"rendered":"https:\/\/olduvai.ca\/?p=55153"},"modified":"2020-09-24T09:07:32","modified_gmt":"2020-09-24T14:07:32","slug":"todays-contemplation-collapse-cometh-iv","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=55153","title":{"rendered":"Today\u2019s Contemplation: Collapse Cometh IV"},"content":{"rendered":"
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Today\u2019s Contemplation: Collapse Cometh IV<\/a><\/h3>\n<\/div>\n
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Tulum, Mexico (1986) Photo by author<\/figcaption><\/figure>\n

My comment on an article in The Tyee about our federal government\u2019s latest throne speech by Prime Minister Justin Trudeau (https:\/\/thetyee.ca\/Analysis\/2020\/09\/24\/Throne-Speech-Stew\/<\/a>).<\/p>\n

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The idea that a sovereign nation can never run into trouble financially because it can create its own currency is certainly the dominant narrative amongst government and \u2018mainstream\u2019 economists\/bankers. After all, who benefits the most from this storyline?<\/p>\n

But is it in fact true?<\/p>\n

Scratching below the surface of this \u2018experiment\u2019 suggests it is not.<\/p>\n

If printing one\u2019s own money were a panacea, then nations like Venezuela, Zimbabwe, or the German Weimar Republic (and countless other nations throughout history) would never have experienced the hyperinflation that they have. They would be the richest nations ever to have existed.<\/p>\n

One could counter that this is because they had to use their debased currency to import goods. True, but if one is debauching one\u2019s currency through exponential \u2018printing\u2019, then this may be true for any nation dependent upon imports, which almost every nation is in our globalised, industrial world.<\/p>\n

The solution that nations have rested upon given this reality is that the central banks collude to all print at relatively the same rate, so currencies don\u2019t fall\/rise too drastically compared to their trading partners.<\/p>\n

Fine, but what does endless money\/credit creation due to the purchasing power of this fiat currency created from thin air?<\/p>\n

Previous trials in this approach indicate that it totally debases\/debauches the currency, significantly reducing the \u2018wealth\u2019 of the people holding\/using it because of the inflation that it creates.
\nHere\u2019s what John Maynard Keynes had to say about this: \u201cBy a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens.\u201d<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

Today\u2019s Contemplation: Collapse Cometh IV Tulum, Mexico (1986) Photo by author My comment on an article in The Tyee about our federal government\u2019s latest throne speech by Prime Minister Justin Trudeau (https:\/\/thetyee.ca\/Analysis\/2020\/09\/24\/Throne-Speech-Stew\/). _____ The idea that a sovereign nation can never run into trouble financially because it can create its own currency is certainly the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,4],"tags":[103,150,309,391,426,14273,538,5833,5499],"class_list":["post-55153","post","type-post","status-publish","format-standard","hentry","category-economics","category-environment","tag-canada","tag-collapse","tag-fiat-currency","tag-growth","tag-inflation","tag-medium","tag-money-printing","tag-steve-bull","tag-the-tyee"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/55153","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=55153"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/55153\/revisions"}],"predecessor-version":[{"id":55154,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/55153\/revisions\/55154"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=55153"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=55153"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=55153"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}