I don't understand "A poor selection of quality politicians..." Is there another way to say this that I might understand? What does your word "poor" mean in this context?
Your explanation sounds like if you lend me 100 bitcoin, you should be okay with me paying you back 99 bitcoin because the 99 bitcoin will be worth more than 100 bitcoin when the loan originated. Is that the way a bitcoin economic system would work?
My impression, the majority of the current batch of politicians are driven by self interest, dishonesty appears rampant in this profession. I'd like to see more social and civil engineers take the job. Big money and lobbyists also have too much influence in the political process imo and bribery not far from their minds. I reckon most politicians would not pass the 3 month induction period if they somehow got a job in a large multinational company, they'd be booted because they were too unproductive and spent to much of their day at the watercooler jawboning.
That's not what I'm suggesting. All I'm saying is that when governments don't set interest rates, and market forces do it based on hard money, the nature of interest rates and the economy will work much differently.
That might be true in an alternative world where "hard money" could exist without government. making it "hard." Then , in that alternative world, as you say, "the nature of interest rates and the economy will work much differently. Some of my ET colleagues have forgotten that sovereign money gets it's value from being the only currency the Sovereign State accepts in payment of taxes. Likewise the Sovereign will pay only in the currency it has declared as legal tender. Nevertheless, when we walk into a casino we are free to exchange legal tender for poker chips hoping to make a killing at the Roulette table.
I think its important to recognize that governments are powerless against the people when the people band together. When a currency clearly starts failing, and enough citizens see this and demand change, there isn't going to be much a western government can't do. If you're North Korea, fine, prepare to be left behind, but ultimately, in this day and age, I do think the people choose. We aren't there yet, or else bitcoin would be over $1M, but we are on the way there. People will demand hard money.
I suppose I should point out that in my post #31 above, when I mention deficits and taxing, I I am referring to "outside money," whereas in your post #33, quoted above, when you mention, "New money always needs to be created to pay back old loans. The fractional reserve banking system makes this so. If banks don't create new money, there isn't enough to pay back old loans," you are referring to "inside money". (I am not sure, by the way, that your statement "New money always needs to be created to pay back old loans..." is correct, although it certainly is true that when banks do fractional reserve lending they temporarily expand the money supply.) Outside and Inside Money are related concepts. Money that moves between the Government and Private sectors is Outside money, whereas temporary money created when a Private sector bank makes a loan is "Inside Money". The inside money created when a bank makes a loan disappears when the loan is paid off. New inside money is temporary, it's not permanent in the economy. It's illegal for a private sector bank to create permanent legal tender. That would be the equivalent of counterfeiting. (Only the Congress has the power to create new permanent money, i.e., "Outside Money.") I suppose you would find it interesting to learn that the "Money Supply" consists mostly of temporary, or "credit money". The amount of "Inside Money" in the private sector economy is much greater than the amount of "Outside Money". The U.S. economy, and all modern economies, so far as I know, run on credit, i.e., inside money. Another thing you might consider is that retail interest rates, the rates banks loan at are market determined. It is only the wholesale price of money, i.e., the rate banks pay on the money they borrow, otherwise known as either the Fed Funds rate or the Discount Rate, depending on circumstances, that is regulated by the government. Retail rates are market determined. Naturally, wholesale rates put a floor under retail rates.* _________________ *In recent years, the Powell Fed changed the mechanism they use to control the Funds Rate to both simplify it and bring it in line with other Central Banks. There is no longer a fixed reserve requirement.
Well. The majority are supportive of President Trump. I'd presume they are happy that Federal departments will be downsized or even eliminated.