free markets and FRB can work together, because people will value the inflated currency for what it's worth.
The problem with inflated dollars is not that they are inflated. The problem is dollars are unconstitutionally recognized as legal tender, giving it automatic superiority. You have to have it to pay debts - taxes, court orders, etc.
So dollars don't have value as would be assigned by a free market; dollars have value because government enforces that they do. If dollars were not legal tender (as they are not supposed to be) then the market would assign the true value they are worth, which by now is somewhere below toilet tissue.
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