When your country legalizes a crime, it doesn't stop being a crime, it merely becomes legal, so it happens more often.
"The engineering mistake is an accounting practice called maturity
transformation. In the best CS tradition—I
When you mint coins without colour of law, especially out of worthless metals, it is considered counterfeiting. Almost always fraud, as it has the mint's stamp except it wasn't created by that mint.
What is fiat except printing money out of worthless materials? Fiat is inherently counterfeit. A counterfeiting monopoly, backed only by naked force.
Fractional reserve is handing out a coin or bill that was not minted at the mint. It is counterfeiting.
Yeah maturity transformation is bad too I guess. Fraud and stuff. Claim: "On Tuesday I will rightfully own $300." Reality: on Tuesday this guy will rightfully owe $500 in liabilities. Lie. Lies are bad, mmmkay. Moldbug does mention the c-word once, at least.
For some reasons, legalizing a crime and allowing it to occur regularly leads to deep structural problems. Astounding.
Basically: never hold fiat if you can possibly avoid it. It's a serious sin to fail to flip the bird at legal tender laws.