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42 sats \ 7 replies \ @Rothbardian_fanatic 22 Mar \ parent \ on: The Price of Gold: A Woefully Outmoded Law Needs Updating econ
Yes, right at this moment. However, that may soon change upon the discovery of the machines and how they have been operated and by who they have been operated. The money has to be founded on some sort of trust, doesn’t it? If you don’t trust the money, how will you use it? I don’t think that you would use a money you don’t trust.
It seems like most people don't really care. My guess is that nothing significant comes of this. The dollar is safer and more liquid than the other fiats. Plus, Trump is threatening heavy tariffs on any country that starts moving away from the dollar.
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It seems like most people don't really care. My guess is that nothing significant comes of this.
The case for people losing trust and moving to a different standard is well known. Argentina moved to a dollar standard, El Salvador moved to a BTC standard and on to something else and we moved from a bimetallic standard to the gold standard as a few examples. People really do care when they start trundling along with wheelbarrows full of useless currency! They change quickly and start accepting something that has value to them.
I am not so sure that threatening people or other countries engenders the trust necessary to cooperate. Many people will not consent or comply with threats or at best will only passively-aggressively comply. Is that a good way to do business. I don’t think Trump is really looking for this kind of result.
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I'm certainly not a fan of that threatening approach, but I think Trump is operating under the belief that many regimes literally cannot survive having tariffs levied on their exports to America.
It's a bad long-term strategy, but in the short term global chaos almost always boosts the dollar.
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I’m thinking of all of the commodities that the federal government have absolutely screwed up and lost due to them putting their greasy, grubby, sticky fingers into the business. Think tobacco, cotton and more recently corn and soybeans. They also screwed up the microchip companies by supporting moving to Taiwan. I am not sure of how many other lines of business that they have screwed up by thinking they could choose winners and losers by taxation and tariffs. Tariffs never seem to work out as they plan.
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Without profit and loss signals, losses are pretty much guaranteed.
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That is true. The whole problem is that the ”experts” are making the choices with no skin in the game. If we could skin them alive for their mistakes, we may see fewer mistakes at all. Reminds me of the idea to pay weathermen only when they are correct. Weather forecasts may drastically improve, then.