Wartime Spending's War on Sound Money \ stacker news ~bitcoin

"These clauses were enacted by Congress, were approved by the Executive, and were upheld by this court in the Legal Tender cases, 12 Wall. 457, as war measures, exceptional in their character, not authorized by any express grant of power to Congress contained in the Constitution, but as not prohibited by its terms, and as justified in view of the great public exigencies which required their adoption." (source: https://tile.loc.gov/storage-services/service/ll/usrep/usrep110/usrep110421/usrep110421.pdf)

Lets say you're in a war, and you're losing. You have enough people to continue throwing out there, but you need money. Is there any nation that would say "In the long run sound money is good for economic development and deficit spending results in malinvestments". If any nation with this take existed in the past, it no longer exists, because it probably lost a war.

Thus, the interest of the state to continue spending either on research and development, or pumping out new tanks, is at direct conflict with the individuals interest to find a sound money that can't be inflated away.

So you borrow money to attempt to win. If this results in a turn in the tide of battle, the country you're fighting now also has to borrow money. Its a race to the bottom and in our current system, the loser ends up with a deficit rate higher than their GDP resulting in hyperinflation.

Now SN, how can this inherent conflict which might drive the state to stamp its boots on its own people in hopes of winning a foreign war? The best I've seen so far, is something which can not be stopped.

Basically, Bitcoin

25 sats \ 0 replies \ @TheBTCManual 18 Sep 2022

Yeah indeed war time spending is a spend at all cost, that political class don't want to be overthrown, as the one that losses tends to be saddled with the debt, as Germans were after WW1, so they'll always throw the currency under the bus and by extension their people to save their own hides and preserve the status quo

Many who made it out in any war were the ones who had movable wealth IE gold, the way I see it is with bitcoin, as the war time spending ramps up, individuals start to actively take those funds and push it into bitcoin, so slowing the effect of war time spending, not stopping it just theres a clear pin prick on both sides, as more people look for an exit.

I am not calling for war, but look how bitcoin has been used in Ukraine, in South America and in my own South Africa, where it's basically always war time, we just don't see it that way but the casualty rate is the same or higher than a war

15 sats \ 0 replies \ @ken 18 Sep 2022

It's very interesting. Money creation is simply too tempting for us human beings. If we can give ourselves power by printing money, we will. History shows this.

In a sense, Bitcoin is saving us from ourselves.

0 sats \ 0 replies \ @quest77 18 Sep 2022

Sounds like what the Bankers did to Weimar Germany before Hitler came to power