You'd understand it better if you ever take the trouble to learn about the Mundell-Fleming Trilemma.
Failure to understand and accept the limitations of the Trilemma leads to catastrophic failure of the monetary system.
BTW, although I am not very good with numbers, conceptually it seems to me that Mundell-Fleming is an advancement on Hume's Price-Specie Flow Mechanism.
It's really just math, you know. As inexorable as the laws of physics. Not magic. Nor flim-flam.
The people who believe in magic are the ones who chase after cups and saucers and double bottoms and other such silly stuff.
Paper money has been an essential element of commerce since paper was invented. Before that, traders used clay tokens. "If the person carrying this token is my nephew, give him 10 sheep and keep this as my IOU."
See, e.g., hawala and hundi. Based on trust.
Things got complicated when people started trading at long distance, with people they didn't know and thus, couldn't trust.
You like gold because you don't have to worry about trust. Nothing wrong with that. But the vast majority of your wealth is just pixels, like the rest of us. You talk the talk, but you're too smart to walk the walk.
It's just trash talk, anyway. I'd find you just as entertaining, maybe even more, if you could find a way to communicate without the trash talk. |
