The return to sound money is necessary from "summary" of The Fiat Standard by Saifedean Ammous
Returning to sound money is not a luxury, but a necessity. It is the only way to ensure a stable and prosperous economic future. The current fiat standard has led to a myriad of problems, including inflation, debt accumulation, and financial instability. By returning to sound money, we can avoid these pitfalls and create a more sustainable financial system. Sound money is based on tangible assets, such as gold or silver, that have intrinsic value. This provides a stable foundation for the economy, as the money supply is limited by the availability of these assets. In contrast, fiat money is created out of thin air by central banks, leading to an endless cycle of inflation and devaluation. Inflation erodes the purchasing power of individuals, making it harder for them to save and invest for the future. It also distorts price signals in the economy, leading to misallocations of resources and economic inefficiency. Sound money, on the other hand, preserves the value of savings and encourages responsible financial behavior. Debt accumulation is another major issue caused by the fiat standard. Governments and individuals alike have been able to borrow money at artificially low interest rates, leading to unsustainable levels of debt. Returning to sound money would force governments to live within their means and prioritize spending on essential services. Financial instability is also a byproduct of the fiat standard, as central banks manipulate interest rates and engage in quantitative easing to prop up asset prices. This creates artificial bubbles in the economy that inevitably burst, leading to economic crises. Sound money would prevent these distortions and ensure a more stable financial system.- The return to sound money is not a matter of preference, but a necessity for a healthy economy. By basing our monetary system on tangible assets with intrinsic value, we can avoid the pitfalls of inflation, debt accumulation, and financial instability. It is time to rethink our current fiat standard and embrace a more sustainable financial future.
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