• 3volver@lemmy.world
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    7 months ago

    The amount of cash in circulation will always outstrip the amount of gold in whatever vault it been tied to.

    That’s… the entire fucking point. They printed away our futures, now we suffer.

    • UnderpantsWeevil@lemmy.world
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      7 months ago

      They printed away our futures

      If the amount of potatoes we produce every year goes up and the amount of currency we print every year goes up but the amount of gold we have in our vault stays fixed, the real economy doesn’t care. You’re trading dollars for potatoes and potatoes for dollars. The gold is irrelevant.

      But if potatoes go up and currency stays fixed, you have too few dollars chasing too many goods. This deflates the cost of the potato and discourages the next crop. Smaller crops mean food shortages. And food shortages impact social stability. So now you’ve got riots from a food shortage that was created entirely because you didn’t print enough currency to buy up all the potatoes.

      • 3volver@lemmy.world
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        7 months ago

        Riots from a food shortage because potatoes became too cheap? Funny speculative statement. What about riots because everything is too expensive?

        • UnderpantsWeevil@lemmy.world
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          7 months ago

          Riots from a food shortage because potatoes became too cheap?

          Riots because people stop growing potatoes and start growing bitcoins, in order to chase the highest possible ROI.

          What about riots because everything is too expensive?

          You’re looking at debt without looking at revenues.

          Far worse to owe $10 when you make $10/year than $10M when you make $10M/year. Particularly when I the value of the asset I’ve purchased is rising faster than the debt-rate. Owning a $100M house on a $10M note is an incredibly deal. Public Debt in service of GDP growth is simply investment. And the ROI on that debt has been incredibly good.