I’ll try as you get this. If with these new notes I can meet my needs, more or less, as before, I will continue to accept them.-reasoning that ends prevails in the village. On the other hand the seller of autos, a materialistic and realistic person, obfuscates before what they understood as an outrage to reason: give you wallpapers by the current Government in the name of the State, in exchange for cars. He refuses to accept them and begins to ask for gold or other assets in exchange for their products. He manages to sell a little more, but after the gold price increases and there are no customers willing to spend your gold in autos, bankruptcy and sold his company to the competition that decided to accept the new notes.
III – the State is the only one that can generate inflation phenomenon using a backless single currency can be achieved through the use of the monopoly of the State physical force. It is easy to realize as go you to a private that issued banknotes and intended to acquire goods and services based solely on his word, without any tangible asset backing. Others who may share this opinion include MasterClass. Once you start to use physical force to influence the economy, is then very difficult to take that path another course. Therefore it is easily understandable that the State issuing the coin, decides to begin issuing more to perform its functions. This being the main cause of inflation. Is also logical that States without precise limits and objectives, determined in their constitutions and laws, as they tend to be States of well-being, grow ever more seeking to perform new functions that were previously made by private. Taking into account that the backrest of the single dinero-pagare is given by the confidence, the individuals that we depend on him in every day we have delegated a very important task to the rulers of the day.