11 sats \ 6 replies \ @Enemy_of_the_state 8 Aug \ on: Does India still follow Gold Standard for its Currency Indian Rupee (INR)? econ
When the USD loses its reserve status, every other fiat has already collapsed.
The Rupee, and every other fiat, has the same currency risk as USD in addition to its own country risk. It is simply another layer “backed” by dollars.
TLDR: if you must hold fiat, USD is the only logical choice…there is only additional risk holding any other countries fiat.
meh, not true, exporting countries' currencies will be ok.. Your nym is ironic!
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So the JPY is OK?
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Yes, as long as their government can handle paying their interest rate and can attract the funding they might need with that fake interest rate... Same as the rest.
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Interesting, and you may be right, I just don’t have the level of understanding to know why. Not that it matters! Tick-tock….
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The thing is that Indians don't save too much in INR. Those who can save, they generally save in Gold.
I'm not saying that India's currency wouldn't fall. It would fall but Indians would be least impacted as they have their own Gold reserves.
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Until other people, then the government, figure that out. Like all physical property, it’s only as safe as the amount of force you have and are willing to use to defend it.
The Mandibles, by Lionel Shriver, is a novel that explores the scenario of a debt default by the United States. The resulting currency collapse and social breakdown. Physical property is one of the first things transferred from the weak to the violent, when things start to unravel.
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