[cryptography] Digital cash in the news...

James A. Donald jamesd at echeque.com
Sun Jun 12 22:44:44 EDT 2011

On 2011-06-12 8:53 AM, Nico Williams wrote:
> A fiat currency with no capital controls and reasonably free
> trade is probably the best currency system yet.  Details do matter
> though.

If operated by far sighted men with an eye for the long term - for 
example if operated by a hereditary monarchy.

Operated by the current lot of crooks who can scarcely see as far as the 
next election ...

Fiat currencies are subject to wild gyrations, which gold was not.

 > Which isn't to say it will
> continue, but if it doesn't, it won't be due to any flaws in this
> currency system.)

I would say that giving total power to the people who brought you 
affirmative action lending is a flaw.  The people operating the system 
are printing money to benefit cronies and voter blocks.

Greece is going broke from too much vote buying.  Governments are 
reluctant let Greece go broke, for fear of contagion.  So they lend the 
Greeks more money, which is another form of contagion.

That governments keep bailing out Greece is a sign of weakness and 
fragility.  They fear that if Greece goes, then the next weakest 
government will go, and then if the next weakest goes, then the one 
after that, the dominos falling all the way to Washington.

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