I understand where you are coming from, but the difference between us is that I don't like taking perceived shortcuts because more often than not they have long term negative effects. Your definition of "economic good" may be good for the here and now, but maybe not so much for the there and then.

quote:
Someone has to control the currency

I disagree. But then that gets into my view on things like Bitcoin and what not, and I don't think this thread needs to devolve into a discussion on that.

quote:
Please explain a system that is more free than the one we have.

Well shite. I may not have a choice to avoid it. Umm...well....Bitcoin is a perfect example of this. If it, or something like it takes off in the future, then it will be the example you seek. A currency and economy completely free of meddling, and only impacted by supply and demand.

quote:
random shiny metal

FWIW, I don't care for gold at all. I don't understand why any one would ever consider it valuable, to be honest. However, I understand it's use in the past, although I do think it's something we should get away from in the future.

quote:
If you were setting up a government and someone were to tell you that you could control 2 of the 3 following options, which one would you choose?

1) Fixed Exchange Rate
2) Sovereign Monetary Policy
3) Free Capital Flow

Which ones would you choose?

If those are my only choices, then I'd pick #2 and #3, but I don't understand why I would have to choose any of those anyway.

This post was edited on 12/3/12 at 8:22 pm

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Posted by foshizzle

Washington DC metro

Member since Mar 2008

40599 posts

Posted on 12/3/12 at 8:29 pm to WikiTiger

quote:
quote:
Someone has to control the currency

quote:
I disagree.

There was a time in US history (the so-called "free banking" period in the early 19th century) when there was no central bank and in fact banks issued their own promissory notes.

The problems with this are numerous. First off, every person is now in the position of having to judge how good a particular bank's "currency" is. If you have a ten dollar bill drawn on Bank One and another drawn on Bank Two, are they really of equal value? Will a grocery store agree with you?

Having a single issuing authority removes these problems. Bitcoin has something like this as well, even though there is no human authority the core issuing rules are a substitute for that. In a sense, Bitcoin has a "central authority" that can't change the rules.

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Posted by TheHiddenFlask

The Welsh red light district

Member since Jul 2008

18384 posts

Posted on 12/3/12 at 8:47 pm to WikiTiger

quote:
Your definition of "economic good" may be good for the here and now, but maybe not so much for the there and then.

I can respect that. I would just have to hear some better idea than what we have.

I agree with not wanting this to devolve into a bitcoin argument, but even bitcoin is governed by a set of rules. Are you for a single global currency?

quote:
I don't care for gold at all. I don't understand why any one would ever consider it valuable, to be honest.

quote:
If those are my only choices, then I'd pick #2 and #3, but I don't understand why I would have to choose any of those anyway.

It's the impossible trinity. The problem that all countries have with banking. You Chose what the US has, which is the most logical, IMO.

Here's a 80 second explanation. LINK

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