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I strongly disagree that it is a temporary store of value. People are much more likely to store wealth in fiat rather than gold. We are also quite happy to deno

I strongly disagree that it is a temporary store of value. People are much more likely to store wealth in fiat rather than gold. We are also quite happy to denominate long term debts in fiat currency.

analog31 9y ago
In my view, people are more likely to store wealth in stocks and real estate. (This could be disproven by comparing the overall market value of those things). At the same time, we denominate long term debts in dollars because we have expectations (with risks) about the long term value of the dollar. Those expectations are baked into the interest rate. And most people don't have any wealth to speak of.