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Imagine I promise to pay you back in Johannes-money that is pegged to the value of 1kg gold and then when it’s time to pay back I change the peg to 1kg rasins.
by johanneskanybal 3y ago
Imagine I promise to pay you back in Johannes-money that is pegged to the value of 1kg gold and then when it’s time to pay back I change the peg to 1kg rasins. I bet that’s pretty close to a default in most peoples opinions.
- georgeecollins 3y agoI can imagine that, but because I know about finance I know that in reality a person in the US could not exchange $35 for an ounce of gold in 1971. In theory sovereign nations had that right up until 1972, but in practice lots of agreements between nations made in the decade and a half before 1972 undermined that right by limiting exchanges or asking foreign governments to hold dollars in place of gold.