Callistemon
growstuff I did suggest that the best way for the Government to borrow to pay for the current crisis would be to borrow from us, from pension funds etc in the way of bonds.
It's a fine balancing act between creating money and rampant inflation.
Surely creating money without fundamental backing would create longterm problems?
Why is Russia steadily buying up gold reserves?
Money is no longer backed up by gold. I don't know why Russia is buying up gold. I would imagine it sees it as a safe commodity, just like anything else which can be traded. The value of gold isn't linked to the amount of money (bits of paper promising to pay the bearer) in the world.
Yes, there is a danger if too much money is floating about an economy that there will be inflation. In fact, some inflation is a good thing.
The real danger without taxation is that a handful of people accumulate an excessive amount of it, which is what happens in a totally free market economy, and it's not directed towards the places where it can benefit a whole society.