Libertarians think that everything that could be wrong is wrong with our money system because they essentially think that everything that could be wrong is wrong about everything. They think it is bad that the government can just randomly produce money to buy things that it wants by waving its magic wand and getting the printing presses rolling. They think money should be like gold because the government can't wave its wand and print gold, but that would be cool if it could.
I don't think it would be cool if the govt could print gold b/c then the price of gold would just go down until it was like any other commodity. If the supply of anything goes up, the price/value goes down. That actually happened in early Spain when they were shipping in all the gold from the New World. The price of gold just went down, and they ended up not being that much richer.
ReplyDelete