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> Governments can easily manipulate the supply (and therefore the true value) of currency behind the scenes without your knowledge Can you provide an example?
by AlexandrB 3y ago
> Governments can easily manipulate the supply (and therefore the true value) of currency behind the scenes without your knowledge
Can you provide an example? Central bank fucking with interest rates or doing QE is broadcast widely to the public. If one believes such moves will de-value the currency, there are ways to hedge against that - including the old standby: gold. And what does "true value" mean in this case? The value of anything is what someone is willing to trade for it. There's no "true value" the government can set that won't show up in the market somewhere.
- jongjong 3y agoHow about people who do not have capital and physically cannot trade against the government's inefficiencies? You're forgetting the majority of people. Myself included. The government has historically benefited those who understood the system, but it doesn't benefit them now. Quite the opposite. The system is now working against those who understand it most. That's why we're seeing a decline in the west.
- dboreham 3y ago> what does "true value" mean Obviously the number of big macs you can buy per unit currency.