Governments & central banks do a piss poor job of determining the correct amount of currency needed in the economy. It was true in the Weimar Republic & tons of others before it. It’s true with the Federal Reserve. The Federal Reserve Note has depreciated 97% since its introduction via the Federal Reserve Act of 1913.

Politicians, as long as their scope is not limited, have an incentive to hand out government promises, bailouts & legislation, no matter how fundamentally or morally flawed, whether paid for or not. This preference is inherently inflationary.

Politicians & central bankers don’t have the knowledge to centrally plan an economy of millions of people of diverse interests, tastes & goals, but are convinced they do. The result of this is similar to that of any attempts to legislate behavior- it fails miserably and has unintended consequences.

The real solution is to up legal tender laws. Let the countries print their own currency if they want. Allow the market to come up with alternative currencies. In the end, the cream will rise to the top & money can function the way it is supposed to function.

Your columns are always much deeper, right on target, much more instructive and intuitive and very well worth reading. Please, keep writing here!

This article is yet another example of your worthy insights. It’s absolutely on target!