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RE: Venezuela: The step by step of a destroyed economy.

in LeoFinance3 years ago

Any time I have the proper opportunity, I have to make it clear: inflation is not an accident, it benefits the State.

According to Rothbard, inflation is the process of issuing money beyond any increase in the stock of specie. In other words, new money substitutes are issued without backing of their specie. The great gain comes from the issuer’s putting new money into circulation. The profit is practically cost­less, because, while all other people must either sell goods and services and buy or mine gold, the government or the commer­cial banks are literally creating money out of thin air. They do not have to buy it. Any profit from the use of this magical money is clear gain to the issuers.

Source: https://wiki.mises.org/wiki/Inflation

If taxation is permanently short of the style of expenditures desired by the State, how can it make up the difference? By getting control of the money supply, or, to put it bluntly, by counterfeiting. On the market economy, we can only obtain good money by selling a good or service in exchange for gold, or by receiving a gift; the only other way to get money is to engage in the costly process of digging gold out of the ground.

Source: https://mises.org/wire/rothbard-essentials-money-and-inflation

Congratulations on what you do. I wish the best for you and our country, especially in these days. You are the kind of people we need.