Doesn't that sound highfalutin? Well, in a Westminster style Democracy, like Canada's, it's not. It is what routinely happens at the start of every new sitting of Parliament, Federally or Provincially. Today it was Ontario's turn, the 40th Session of Parliament, and the speech was delivered by the Queen's Representative (hence Throne) here in Ontario, the Lieutenant Governor. The speech itself is written by the governing party, in this instance the McGuinty Liberals. They probably consider themselves middle-of-the-road politically. Of course in every Western Democracy, that means statist, that is, the state is the beginning, the end, and the middle of all problems and solutions. That unfortunately is the way they think and so do many of our citizens. I take my new role as Leader of the Ontario Libertarians, seriously enough to respond to any major Ontario Government announcements, and a Throne speech sets the tone and the goals of the new Parliament, so, it is important. Below is a heavily edited version (under 5 minutes) of the speech, written highlights can be seen here. But give a listen, then read my response underneath.
Absolutely right. But the other way to extinguish a "government debt" where the money supply is controlled by the government, is to print more money and use it to pay off the debt. Its happened before and I bet it happens again.
But by increasing the money supply, without an increase in productivity , the value of each dollar has decreased. It takes more dollars to buy an ounce of gold and you can effectively reduce the debt by inflating it away, or am I wrong?
Mr. Allen Small,
ReplyDeleteYour statement "That is pathetic, and does not even begin to address the problem." leads me to ask; What is the problem? Massive government Debt?
How does one extinguish debt? By issuing more debt or by "paying" it off. How is debt get "paid-off"?
"Money must be a commodity because only a tangible good can extinguish a debt."
source: http://www.goldstandardinstitute.net/2011/07/gold-is-money-and-nothing-else-why/
Mr. Small, if you find time and are willing to read another "Speech" (not from a Throne). Would you kindly send me your opinion on this speech?
I thank you in advance for your reply.
Neal
darcynealdonnelly@gmail.com
Absolutely right.
ReplyDeleteBut the other way to extinguish a "government debt" where the money supply is controlled by the government, is to print more money and use it to pay off the debt. Its happened before and I bet it happens again.
Sorry, but when the government Prints more Money they are actually increasing the debt load. Fiat currencies are "promises" to pay "more promises".
ReplyDeleteBut by increasing the money supply, without an increase in productivity , the value of each dollar has decreased. It takes more dollars to buy an ounce of gold and you can effectively reduce the debt by inflating it away, or am I wrong?
ReplyDelete