Re:Why a global recession is inevitable in 2023
by w1nst0nsm1th on Sunday January 01, 2023 @04:50PM
(#34211356)
High inflation has always been the effect of massive increase of money supply, typically for the purpose of paying back creditors by state actors.
What account for money supply can be gold (Spain Inflation, 16th century), diluted gold coins (look for monetary crisis in Roman Empire), paper and scriptural money emission backed by unchanged gold possession (French Franc, after 1913 ; US dollar in the late '60), paper money not backed by gold (look for chinese ligatures), scriptural and paper money backed by a mix of other currencies (in the form of foreign government bonds) and gold (central bank system after 1973)...
...And homeland government debts (central banks system after 2008), which is called debt monetization https://en.wikipedia.org/wiki/Debt_monetization, which was, strangely enough, the polite way to say printing money when I was a kid.
What account for money supply can be gold (Spain Inflation, 16th century), diluted gold coins (look for monetary crisis in Roman Empire), paper and scriptural money emission backed by unchanged gold possession (French Franc, after 1913 ; US dollar in the late '60), paper money not backed by gold (look for chinese ligatures), scriptural and paper money backed by a mix of other currencies (in the form of foreign government bonds) and gold (central bank system after 1973)...
...And homeland government debts (central banks system after 2008), which is called debt monetization https://en.wikipedia.org/wiki/Debt_monetization, which was, strangely enough, the polite way to say printing money when I was a kid.