What is Sound Money? Sound Money Explained
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What is Sound Money?
Deriving its name from the powerful, melodic ring gold and silver make when dropped, signaling honesty and integrity, sound money is money that is not prone to sudden appreciation or depreciation in purchasing power over the long term, aided by self-correcting mechanisms inherent in a free-market system.
The foregoing definition presents several implications about how we view sound money and how we should approach money in general.
Central banks across the world manipulate money ostensibly to “grow,” or “stabilize,” or otherwise achieve their desired interventionist goals for the economy. However, large swings of the purchasing power of a money, such as that seen with the Federal Reserve Note, result from the same money manipulation that purports to solve the very problem it causes.
A negative consequence of central bank control of money is the disconnect between the money supply and the demand for money. Economic downturns strike when changes in the demand for money are not met with an automatic adjustment in its supply.
In the United States, today’s monetary system is antithetical to sound money. Money, including its supply, is controlled by unelected bureaucrats operating a government backed banking cartel with no real constraints on its power.
Full article:
https://goo.gl/i6T21J
Deriving its name from the powerful, melodic ring gold and silver make when dropped, signaling honesty and integrity, sound money is money that is not prone to sudden appreciation or depreciation in purchasing power over the long term, aided by self-correcting mechanisms inherent in a free-market system.
The foregoing definition presents several implications about how we view sound money and how we should approach money in general.
Central banks across the world manipulate money ostensibly to “grow,” or “stabilize,” or otherwise achieve their desired interventionist goals for the economy. However, large swings of the purchasing power of a money, such as that seen with the Federal Reserve Note, result from the same money manipulation that purports to solve the very problem it causes.
A negative consequence of central bank control of money is the disconnect between the money supply and the demand for money. Economic downturns strike when changes in the demand for money are not met with an automatic adjustment in its supply.
In the United States, today’s monetary system is antithetical to sound money. Money, including its supply, is controlled by unelected bureaucrats operating a government backed banking cartel with no real constraints on its power.
Full article:
https://goo.gl/i6T21J
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