Originally Posted by Sam Emerson
Letting the government create money always leads to inflation. Every time the government gets in financial trouble it creates money. Non-government money puts limits on how much the government can get away with. If they want a war it has to be paid for by raising taxes. Whether the non-government money is gold, silver, a paper money representing some commodity or a digital system is something that the market can decide through open competition. If gold is being hoarded other currencies could take its place. We aren't stuck choosing between Friedman and Keynes. There's a whiter, straighter way.
Yeah, but the government is white, it will play straight. Because whites are always honest and upright and would never resort to cheating by inflation. That's Joe's position, anyway. It's purely ideological.
No one can be trusted with control of the Great Inflation Machine. Market competition is the only thing that will keep money honest - and that's what the little guy needs most.