Comment by MrPatan
2 years ago
Steady state thinking. Of course gold would become cheaper, sure. But you will have bought all the actual productive assets first!
This is the same trick economists play when saying "inflation doesn't matter". It doesn't in the steady state, but in the meanwhile, I printed the money and gave it to my friends, who do you think is going to end up owning all the hard assets?
In that time "ownership" of assets was a highly fluid concept. Kings nominally owned all the assets already, and as more than a few discovered, loose is the head that wears the crown.