Thanks Dav3b,
Great content on pricing. As for default, the government can pay off its current debt with newly minted money. That seems governmental.
if the government tries to pay its debt with newly printed money, this will result in the devaluation of the currency. This is inflation, since the newly created money increases the supply of money, and as the supply goes up, demand goes down. This is why increasing the supply of money tends to cause a rise in prices; as the demand for dollars decreases, you’ll need more dollars to buy things. That is, when the currency is inflated, it’s like the receivers of the new money are getting it right out of your pocket. This is why the best money is 100% commodity money, as it cannot just be created out of thin air, thus stealing from everyone. Do you feel like the government’s debt is your responsibility to pay off?