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A demand for a good is not a demand for a particular good as such but a demand for the services that the good provides. For instance, an individual demands food because food provides nourishment. In this case, demand means that the individual wants to consume food—the service that the particular food provides. However, this is not the case with respect to money. According to Rothbard,
Money…is solely useful for exchange purposes. Money, per se, cannot be consumed and cannot be used directly as a producers’ good in the productive process. Money per se is therefore unproductive; it is dead stock and produces nothing.
Money’s main function is simply to fulfill the role of the medium of exchange. By fulfilling this role, money simply facilitates the flow of goods and services between producers and consumers. With the help of money, various goods become more marketable—they can be exchanged for more goods than in a barter economy. What enables this is the fact that money is the most marketable commodity.
Therefore, the reason that an individual has a demand for money is in order to be able to exchange money for other goods and services. Consequently, in this sense, an increase in the supply of money would not be absorbed by a corresponding increase in the demand for money, as would be the case with other goods. For instance, an increase in the supply of apples in response to the increase in the demand for apples is absorbed by the demand (i.e., individuals consume more apples). Thus, the increase in the supply of apples by 5 percent would be absorbed by the increase in the demand for apples by 5 percent.
To but it bluntly: the increase in the supply o money is nothing more than getting something for nothing. This is called theft in most people’s language and is exactly correct. The central bank steals money when it prints more because the supply of money is always adequate for the economy.
If the point were to meet the demand for money, why not just relax counterfeiting laws?
Obviously, the point is transferring purchasing power to the cronies, from the general populace.
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But, isn’t that the whole purpose of the state? “To have everyone living at the expense of everyone else?” Bastiat said it well. This is just the political gang members and banksters stealing from everybody else. It is a really good reason to go with BTC. At least, after the last halving, BTC cannot expand further. What I project happening is that as sats become more valuable they will be used in place of fiat dollars. I just hope they don’t try something stupid, like CBDC!!
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Pretty much. I actually think the purpose of the state is just for the ruling class to live at the expense of everyone else. They use the illusion that everyone else can get a freeride as protection.
Bitcoin is easily the best protection we've ever had against the state.
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Not yet! Not until there are more bitcoin users and the other people abandon gold and silver. I don’t really think that will happen, though (the abandonment). What will happen, IMHO, is that enough people will get into BTC to throttle the banks in their inglorious buildings (cribs).
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