Re:Fiat is Effective: fiat for the crypto crowd [pdf]
by a_c_s on Monday October 16, 2017 @01:42PM
(#15485117)
> management of the supply of that currency that is equitable to all participants remains illusive
The interests of participants are mutually exclusive: debtors want high inflation, lenders want deflation.
Re:Fiat is Effective: fiat for the crypto crowd [pdf]
by rphlx on Monday October 16, 2017 @10:45PM
(#15488277)
And that's precisely the problem that an immutable issuance schedule, like Bitcoin's, attempts to solve (fairly successfully so far). It prevents either of those 2 sides from unilaterally manipulating the currency supply to rob the other side after a contract or borrowing arrangement is signed.
> What do you think the Fed was attempting to do? The Fed was attempting to save a system from complete collapse.
> it sounds like you are advocating there be no way for an agency of a democratic government to dynamically adjust money supply (or interest rates)
This is the crux of the problem. Modern societies need currency and yet the management of the supply of that currency that is equitable to all participants remains illusive.
> Say north korea suddenly waged total was on US, or a massive natural disaster happens, but the government didnt have huge reserves of money to pay for defense or aid?
The government would use its existing resources, any reserves they put aside for this type of contingency or they could borrow (e.g. bonds) the necessary funds.