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    Author Topic: Bitcoin vs. Gold Prices  (Read 2387 times)
    Hell-raiser
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    March 05, 2018, 07:17:48 PM
     #181

    I don't deny that they often abuse their power of printing money but it seems to me that it is still rather a lopsided view to indiscriminately blame the government for every wrongdoing. After all, it was the financial (banking) sector that had created the subprime mortgage crisis in the first place, not the government itself. You could of course say that they should have interfered but it is free market, isn't it?
    In this analysis, we have to view the state and the banks as an alliance to jointly benefit by issuing financial assets and propping them up.  E.g. the asset bubble that led to the mortgage crisis was inflated not just by banks, but by bankers working hand in hand with a coalition of political entities.  It's not just the narrow interests involved (such as those wanting an increase in home ownership by minority groups,) but asset inflation benefits all politicians because the 'free' wealth lifts the entire economy, job base, investor base for public debt, and tax base.  At least until, hopefully, one leaves office!

    So your point can be summarized like to each his own, everyone for himself and devil take the hindmost. To put it differently, you can't expect anyone to behave responsible, as in money printing, when they can easily get away with being completely irresponsible as is the case with virtually any government. But then it is not an economic question anymore. In other words, it makes no sense to deal with such issues from purely economic point of view. Otherwise we will always be missing the whole picture.
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