Good money chases bad out of circulation. That’s Gresham’s Law.
But what happens when the good money and the bad money are controlled by different groups? One private and backed by sweat; the other public and backed by blood (or the threat thereof).
This is not a stable equilibrium.
Taxation (or wealth redistribution) is the price we pay for the social contract that is the state and the privileges that come with rule by law and the honouring of private property.
Particularly when we see the proponents of hard private money (bitcoin holders) actively supporting the dilution and (re)distribution of soft public money by calling for MMT.
This is not very sporting.
When private money holders expect to be able to hold their own money safely away from the hands of the state; while at the same time still demanding “their share” of the spoils of soft public money (that is, really, the collections of other people’s private money); one can clearly see how the social contract unravels. Especially in a world where the appetite for entailments – like the ubiquitous calls for UBI – is only growing by the day.
Soft, inflationary fiat money is not good for the future. Neither are schadenfreude and hypocrisy.
One cannot be libertarian with your own assets but socialist with the assets of others and expect anything other than revolution. Again.
And that’s why we call it “revolution” – isn’t it? Because it comes around again…
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