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This seems to me to be a critical question that, until answered, hard money will never stick. The 2 main points:
1) A governing authority based on hard money will not be able to defend themselves from money printer entities and so will fail. So stability of a hard money world is is at risk from even a single money printer.
2) A governing authority based on hard money will not be able to offer immediate services (i.e. todays entitlements) to subjects that a money printer authority could offer. Consequently, the money printer will always win election over the hard money authority.
These are both short term issues that would, in the long run, cause failure of the money printer authority (perhaps a generational time frame). But, in general, people don’t think or act for the long term. The money printer authority always appears superior to the hard money authority in the near term.
So how can a hard money world ever be stable?
At this point, my only answer is through education and culture. If every hard money citizen is raised to understand the foundations of economic theory, the false promises of soft money, and this knowledge is embedded in the culture (intrinsic motivation), then the population as a whole would strongly resist soft money. I think the other requirement would be that such a culture must embody ideals of equity and constantly demonstrate the ability to maintain and improve living standards. And again, a culture that understands soft money is the antithesis of these ideals would be a requirement.
Am I off base here? What points have i missed and what alternatives are there to create a stable hard money world?
