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We should put it on a coin (Photo: Roger Viollet Collection / Getty Images)
Roger Viollet via Getty Images
A few years ago I wrote pieceFor public discourse, called “Montescuiu and monetary system”. Our number of money is discussed, non-gold standard money, today from the perspective of the French legal sage of the eighteenth century, Montescuiu. His The spirit of law He claims to be practically well agreed properly from the people – that there should be little “space” between which the laws and legal conventions also specify the actual desires of the population on ordering society.
Fiat money fails to be true. The public abari fiat money and long days when the all-American term “sound as a dollar” meant something. The United States was at the Golden Standard until 1971. years and mowing silver coins until 1964. year marking the final points of the entire US economic history, in a popular imagination today – that it is in a popular imagination, the prosperity of the post-war war. Americans prefer today, because they always have, classic monetary systems, not fiat ones.
The view of the experts is the opposite. They think the fiat money is great, and that the gold standard is especially properly in the funnel of history. They reject the return to the Golden Standard, become impatient with fun complaints and indicate a huge consensus among professionals and experts in monetary affairs that any consideration of gold standard is a waste of time, resources and energy today. Ben Bernanke’s position that he had no idea what the golden market has moved the thing. The main monetary master, such as the chairman of the Federal Reserve, may be above all, it should take a look at what moves the golden markets.
Populace loves money similar to the gold standard, experts reject that money and that is the situation we have. It is a very nice illustration of what Monteskuie has become. The public wants something, but her legal conventions give it something else. Therefore – something must be given.
You can tell Bitcoin. We certainly work in our new book, Free Money: Bitcoin and American Monetary TraditionIn which we make the case that the whole monetary history of the United States has momentum in one direction, according to classic money. Because we dealt with classical money, it was approximately, Bitcoin.
But there are other ways, just as important that the public preference for classic money is manifested. I am submitting it entirely The housing of housing accessibility crisis arises from this inclination. As I considered A few weeks ago, the chairman’s home price index, which begins his leadership in the nineteenth century, was only a few years before the gold standard around 1970. In order to reduce the question: To reduce the question:
Prices of houses in the United States have always been low and stable – until we start from the Golden Standard 1971. years.
From that event, the graisium jumped and jumped. There was someone here and there, but in general, the index rose. Before 1971. years, stable; Post, 1971, up.
The search for alternative causes is not necessary. Housing and land are classical protection against fiats. There are other factors in the total average prices in domestic taxes – but even construction materials in important cases (such as copper) themselves have significant features of Fiat’s money protection. The land is a hedge against non-geological (golden) money. We took off the gold and we had a flourish in what he threw the house, the ground, and therefore in the houses.
It is not so much that the houses have become inaccessible, because the country’s portfolio preference moved to real estate and further than other compositions of total assets, the entire division varies much from that we have a classic monetary system. Ownership actions behaved in the same way, as I wrote in various occasions. Stocks have monetary characteristics of monetary and tax protection. Purchase of them is essentially just taking place then In the 1920s, which will say after imposing Federal Reserve and Income Tax 1913. years.
Loss of economy efficiency into great portfolio preferences, because the monetary convention is not what the public wants to be large. We had two percent of growth at best in the whole 21ulcentury. This is half, at best, what was normal in American history. The 1970s were the fire of economic garbage. Gold fell on the markets in the 1980s and the 1990s, as the real estate of the neketrebu seduced. Then we had a big real economic growth.
When we had a gold standard simulation since 1971. years, and in the 1980s and 1990s, the houses have calmed respect and volatility. When we have no 1970s and 2000 and 2000. years – we have residential bubbles and occasional busts, of course, of course.
Bitcoin will probably really come to save us from FIAT, and thus restores normal portfolio preferences, including real estate. Meanwhile, a professional monetary class could take care of the pointer from Montescuieu. We have money from the fiat, but the public hates it. Therefore, a professional class, you should start discovering good reasons for people, along with models and algebra, to make it bad too. And if your expertise tells you otherwise, it fools you.
