CodingInLondon on Nostr: “Centrally directed and rapidly created new money is basically a breach of contract ...
“Centrally directed and rapidly created new money is basically a breach of contract for savers, who thought that the units they held would be reasonably stable.
Conversely, centrally directed and rapidly destroyed existing money is basically a breach of contract for debtors, who took out debt in units they thought would be reasonably stable.
It’s not just a question of whether money should be hard or weak; it’s also a question of how elastic, arbitrary, and rapidly changing its supply should be. In other words, it’s a question of who controls the ledger, and therefore a question of who has the power to rapidly harm either savers or debtors when they determine that it’s appropriate to do so.”
Lyn Alden, Broken Money
Conversely, centrally directed and rapidly destroyed existing money is basically a breach of contract for debtors, who took out debt in units they thought would be reasonably stable.
It’s not just a question of whether money should be hard or weak; it’s also a question of how elastic, arbitrary, and rapidly changing its supply should be. In other words, it’s a question of who controls the ledger, and therefore a question of who has the power to rapidly harm either savers or debtors when they determine that it’s appropriate to do so.”
Lyn Alden, Broken Money