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I guess you didn't get the memo. The US abandoned the gold standard in the 1930s and with that the US dollar became a fiat currency, i.e. a currency that isn't
by lottin 5y ago
I guess you didn't get the memo. The US abandoned the gold standard in the 1930s and with that the US dollar became a fiat currency, i.e. a currency that isn't backed by anything. A fiat currency cannot be debased because it has no "base".
- MadSudaca 5y agoMaybe not to you, but every time the FED prints money, my dollars are worth less. From my POV they’re currently debasing the currency.
- OscarCunningham 5y agoIn 2009 they printed money and dollars were worth more.
- MadSudaca 5y agoSo if printing makes dollars worth more, why stop? Or that effect only applied to 2009?
- arcticbull 5y agoBecause supply alone is not what defines the value of money. This is the concrete example of why Austrian economics is a wholly insufficient model.
- MadSudaca 5y agoI think the Austrian school explains quite well the phenomenon, like Newton’s Laws for dynamics.
- arcticbull 5y agoNow do Japan.
- arcticbull 5y agoIf you can buy the same amount with them, then they are demonstrably not worth less.