The Mechanisms of Sound Money

The natural interest rate will ebb and flow as kind of an equalizer effect on money and spending and saving and debt. And so there are these built in mechanisms to sound money to a limited supply of money that will stimulate spending when people are saving too much. The banker looks out of this and he realizes, hey, I can just create as many of these pieces of paper as I want. There's no cost to me doing that. Hey, you can come get gold from me at any time."