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I would assume that bond was made in an era of low or no inflation. The yield of 2.5% would barely cover our current levels of desired inflation.


Indeed, the Netherlands at that time operated on a 'hard money' system. Coins were minted from gold, silver, and copper, with their value directly tied to the availability and intrinsic worth of these metals, naturally limiting the money supply. This is in contrast to modern fiat currency systems, where money derives its value from government decree rather than a physical commodity, allowing inflation through unrestricted money creation.




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