Quote:
Originally Posted by afc wimbledon
The purpose of a currency beyond just as a means of exchange is to allow the Government to have some stabalizing control on an economy, it also enables them to insure the financial system, without this there are no credit cards, no car loans, no mortgages.
I have the advantage that I can remember life without credit, its not that far back, 1960's for the UK, if you wanted to buy a car you paid cash, there were no car loans.
A world without Government control is a world where we all have very little stuff, where banks are little more than places to keep your savings, they dont lend money beause it is too risky, the economy shrinks massively due to the lack of purchasing power.
People forget this is why our Grandparents lived 3 or 4 to a 2 bedroom house, it was because they couldnt borrow enough to have a bigger house, go back to the 1930's and most people had to pay cash up front for a house, there were no mortgages for ordinary folks.
Much like our ability to dislike 'big pharma' because we have become so used to easy access to medicines that cure common diseases that used to kill us or how we are so used to living in a stable democracy we can assume we can break democracy and everything will be fine we also assume without Government control (and it's associated insurance) of the economy it will be fine and all the things we like about fiat Government backed currancy will still go on, they wont, no Government control no Government backing, no backing no lending.
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What a well written response. Unfortunately, it has absolutely nothing to do with why allowing one party to wholly control a currency is a terrible idea and it wrong in almost every single aspect.
I can borrow against my crypto right now, and the defi market is in its infancy.
Do you think that government control over currency began sometime after your grandparents couldn't get a mortgage? Government control was the reason why mortgages were harder to get before, not the solution that solved it. Governments control their currency to control their economy. They use it to manage inflation and the borrowing power of the nation.