"What strengthens the nation's domestic population is a predictable currency. This makes forecasting easier. It reduces people's concern about fluctuating currency values. But you cannot get a predictable currency internationally, because other nations are constantly tampering with their currencies, almost always by expanding the money supply. In other words, foreign central banks inflate. So, a domestic currency that is in fixed supply is going to appreciate in relationship to those foreign currencies. In other words, there will be an increase in purchasing power. . . ."
"So, a stable money economy benefits a majority of citizens, who are constantly able to buy at ever-lower prices. Defenders of mercantilism argue that this is a bad policy. They are convinced that the subsidy involved to the export sector from the central bank that is inflating the currency is a greater value to the nation than the reduced quantity of goods and services that are available to domestic customers. The defenders of mercantilism never discuss the economics of redistribution. They never point out that a majority of citizens experience economic losses, when compared to the gains that they would have made, had they been able to buy foreign goods at ever-lower prices."
"The world is adopting policies of competitive monetary depreciation. This is going to work to the disadvantage of the vast majority of citizens in every nation. They will not be allowed the benefit of having a strong domestic currency, which would enable them to import more goods from abroad. They would be able to get the goods and services they want, at an ever-declining price, if the domestic currency were based on a gold coin standard. If they had full gold coin redeemability on demand -- if they could go to a bank and get a fixed quantity of gold coins in exchange for digital money -- they would experience an ever-rising living standard. But they do not understand economics, so they consent to policies of mercantilism. This ultimately means monetary debasement. It steals from the masses for the benefit of the exporters. It sends desired goods to foreigners."
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