/biz/ - Business & Finance

>>55687907
Well yes, that is how economics at whole works. Prices stabilize themselves through natural free market feedback. If PM gets more expensive due to the demand curve shifting up, that will signal to miners that people want more until you return to some slightly offset version of the previous price instead of staying at a higher price.

However, centuries of government meddling with money has distorted market mechanisms that would otherwise work for money as well, due to the false pretense that money is an exception and should be manipulated at the whims of the government. The obvious result was that the past century was that of inflation, monetary warfare, sanctions, currency blocks, and obviously war.

What do people seriously expect from fiat? We are literally in a much worse position than before we switched. The biggest complains were at first that currencies of other countries circulated in each other. Oh the horrors, let's make the mint exclusive, that resulted in rampant debasement of most national coins in medieval Europe. Then they complained how the exchange rates for silver and gold fluctuated, oh the horrors! And so fixed rates were established. Due to Grahams laws that literally drove out the under-priced silver in most countries. Then they complained how banks were able to do literal fraud. So they legalized fraud with bank holidays and fractional reserves. Then they complained about gold leaving the country. So they made it difficult/illegal for civilians to own their gold. ETC Every. Single. Step. towards fiat was a travesty and no wonder this monetary turbulence and implementation of Keynesian policies coincided with not one, but two world wars.