"Trader and investor Michael Hampton talks to GoldMoney's Dominic Frisby. They discuss the importance of sound money, the shrinking of the middle class and currency competition.
Dominic Frisby states that the extraordinarily uneven distribution of wealth in country's like Britain and America is a consequence of our system of money. Those who receive the newly created money first benefit over those who don't -- a process which compounds over time and leads to an ever greater concentration of wealth among the top 1%. They also point out that government redistribution of wealth -- whether via inflation or through welfare payments -- is placing incredible pressure on the middle classes, who are finding themselves squeezed like never before.
Currency competition would take away the state monopoly on money and thus its ability to redistribute wealth via inflation. Dominic's favoured model is to go back to metal money that is stored in vaults, and where ownership can be transferred without much effort. Bitcoin is another example of an independent currency. They also talk about the idea of a currency that is backed by equities. The free market is best at creating the most efficient solution to a problem -- which in this case is the need for a reliable international currency."
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