RE: Universal Basic Income is Communism 2.0
Agree with you. UBI is not good! It sounds more like a control than a advantage to people.
Your explanation of inflation is spot on. I cannot agree more and there are not a lot of people that see it this way. They can't look past what they're being told. I explain the same in one of my post
But I cannot agree with the isolated example of Mansa Musa where inflation on gold was an effect of over supply into a system. Yes, in isolation it will happen as one cannot eat gold. I can further explain it througn an example of 10 people in a system. They have basic needs and exchange money for what they need. If all you give them is gold (not even water) they'll die within 7days. Hence gold becomes worthless to them.
This is however a small sample. If the same was done today those people would be rich beyond words because they'll be able to trade with the world.
A good example of why I don't agree is the inflation rate when a fiat currency is on the gold standard. It is close to zero.
What is bad for us is not however bad for someone else. Government want you to spend money as quickly as possible and if money holds value for a long time people tend to not spend as much becuase their money would be worth in 20 years what it is worth today. This kills most government budgets and is the reason they moved away from a system like this (if they can link an expiry date on fiat they will be even happier).
In a larger system like the world. Gold will never have an excessive inflation rate because there is just not enough to go around and it cannot be printed from nothing.
That is my opinion if you don't agree, let me know.
Excellent post man. I have learnt something new.
Thank you very much @dpl!
Right, at present gold would have value, what I was trying to explain is that an increase in the money supply (in this case gold) does not lead to real wealth, since real wealth is goods and services, currently there is a global market and a lot of wealth, in addition to the fact that gold has ceased to be a medium of exchange and has become a means to save value, so that today gold would have a lot of value, however, if tomorrow they arrived some aliens and they made the gold very abundant, then it would lose its value automatically.
Agreed, I tend to disagree even in agreement to entice further conversation which leads to a better understanding. We are saying the same thing, and if you read my post on inflation it ties in nicely with your explanation.
Keep up the good work. I really enjoyed this post!