>>510085504
>So it was a financially unprofitable enterprise?
You're confusing cause and effect. The ability to run huge deficits (to be hopefully paid back someday) is a FEATURE of fiat currency.
Hard money prevents this because there is a FINITE supply, and when the supply gets tight, interest rates rise which acts as a natural equilibrium mechanism to constrict uneconomic expansion.
Similarly, using a gold or silver standard for internatiional trade prevents massive trade imbalances that we see with the USA. If you need to pay physical gold/silver for your international trade, your exports NEED to at least balance your imports. You can export more than you import, and run a surplus, but you CANNOT run deficits or you run out of gold/silver.
Hard money keeps people and countries honest. It's worked for centuries.
https://youtu.be/d0nERTFo-Sk?t=198
