tag:blogger.com,1999:blog-386077914312449748.post3552408626137883060..comments2024-03-27T20:37:08.065+01:00Comments on Defence and Freedom: Economics: Deflation or inflation?Unknownnoreply@blogger.comBlogger3125tag:blogger.com,1999:blog-386077914312449748.post-57052332502893621142009-07-29T00:59:13.876+02:002009-07-29T00:59:13.876+02:00The value doesn't stem from a fiction that you...The value doesn't stem from a fiction that you could get something from the state for it (such as the gold guarantee that IIRC Nixon broke).<br /><br />The value of the EUR stems from its relative scarcity and the fact that it's guaranteed by law to be accepted as payment in all trades inside the Euro zone.<br /><br />The ECB is a multinational institution that isn't susceptible to a single nation's intents, it has no history of providing cheap money as cure for everything like the U.S. Federal Reserve and the ECB technocrats are obliged to watch price stability first, with concerns about economic development second.S Ohttps://www.blogger.com/profile/03359796414832859686noreply@blogger.comtag:blogger.com,1999:blog-386077914312449748.post-736714238073771952009-07-28T23:59:06.741+02:002009-07-28T23:59:06.741+02:00I understand in the United States that the dollar ...I understand in the United States that the dollar isn't backed by anything (such as the gold from Fort Knox), and that tomorrow a billion dollars could have the same value as Monopoly money (hence nothing) <br /><br />but what exactly is the Euro backed by?Paul Iddonhttp://www.pauliddon.net/noreply@blogger.comtag:blogger.com,1999:blog-386077914312449748.post-43815866834369256922009-07-28T19:40:53.580+02:002009-07-28T19:40:53.580+02:00In the US inflation is likely. We're simply pr...In the US inflation is likely. We're simply printing too much money for it to be anything else. I'm betting in Euros.ENhttps://www.blogger.com/profile/12193563623321560413noreply@blogger.com