> > One has its price regulated artificially by creating more of it
> Not on these scales. Artificial adjustments to the dollar happen on month increments, possibly days.
To give you a sense of perspective, the FED was printing $55bn/month this year [0]. So the FED prints the whole Bitcoin economy ($6.7bn) every 3.6 days, ... day after day, month after month ... for many many years now [1].
Milton Friedman is famous for saying the inflation of the dollar is exclusively controlled by the FED, but that isn't 100% true today. There are other branches of government that capture back large amounts of the printed paper from operations that are illegal. So in a sense, the "war on drugs" could be keeping inflation lower than it would be without it. For inflation to be felt the money has to be in circulation. Also, when the US broke away from the gold standard and printed a lot of money for police actions, it took about 10 years for the inflation to become rampant. It is important to realize this was before the crack wave.
Any references on the volume of paper that is confiscated and how it compares to $55bn/month? In any case, isn't drug money re-distributed into the economy? (I don't know, so I'm genuinely curious)
