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> Central bank != government in most developed countries If the government can keep issuing more bonds, essentially any time it wants, and it knows that the ce

> Central bank != government in most developed countries If the government can keep issuing more bonds, essentially any time it wants, and it knows that the central bank will always be there and can use its infinite money supply to buy all of the bonds which the government chooses to create, then we can safely say that there is no meaningful distinction between the government and its central bank from the perspective of citizens. From their perspective, it's just new money coming out of a big state-controlled money printer. > Exchange rates are not stable for a variety of reasons that are not purely supply-related Yes but it's a fact that all countries aim to keep inflation at around the 2% to 3% mark. If a country just stopped printing money and backed it with gold (for example), then that country's currency would almost inevitably go up in the long run. Consider that the US dollar has lost 90% of its value in the last 50 years or so to inflation. This would show up on the forex charts as a sustained, upward trend if any country did this. Just look at fixed-supply cryptocurrencies like BitCoin and DogeCoin if you need more proof of this effect... I hope we don't need to make the argument that DogeCoin succeeded on the basis of its economic efficiency... Using the electricity of an entire country to process a mere 4 transactions per second... It would seem that the fixed supply of DogeCoins and BitCoins contributed to massive price increase in spite of economic inefficiency. BTW, didn't Gaddafi of Libya try to introduce a Gold Dinar currency? I'm sure this bears no connection to what NATO did to him after. Did any country manage to abandon their national fiat system without its leaders being assassinated or overthrown in a violent coup? Kind of suspicious. Name one country on earth which isn't on the same inflationary fiat monetary standard. Most have a central bank and work much the same way, those which don't just use some other country's fiat... Some countries aren't shy about going the hyperinflation route... but no country will dare try the deflationary route. Why? Why is it that only decentralized currencies without leaders were able to achieve this?

JumpCrisscross 2y ago
> it's a fact that all countries aim to keep inflation at around the 2% to 3% mark False [1][2][3]. > didn't Gaddafi of Libya try to introduce a Gold Dinar currency He also began using every other currency than dollars. That’s how rebalancing works. > Did any country manage to abandon their national fiat system without its leaders being assassinated or overthrown in a violent coup? Kind of suspicious Pegged currencies and currency boards exist. Also, what are you thinking of? Because we haven’t had a working economy with a fixed-supply currency since the Industrial Revolution, for obvious reasons. > no country will dare try the deflationary route. Why? Did you miss the Euro crisis? Austerity is forced deflation. > Why is it that only decentralized currencies without leaders were able to achieve this? Straw man. Every time crypto crashes, they’re hyperinflationary in real terms. [1] https://indianexpress.com/article/business/economy/rbi-targets-inflation-at-4-for-sustainable-economic-growth-9152006/ https://indianexpress.com/article/business/economy/rbi-targe... [2] https://www.ceicdata.com/en/argentina/consumer-price-index-inflation-target/central-bank-of-argentina-inflation-target https://www.ceicdata.com/en/argentina/consumer-price-index-i... [3] https://www.reuters.com/world/middle-east/turkey-inflation-hit-685-ahead-election-blow-ruling-party-2024-04-03/ https://www.reuters.com/world/middle-east/turkey-inflation-h...
- throw0101b 2y ago
  > Did you miss the Euro crisis? Austerity is forced deflation. One look at some of the history of austerity: * https://en.wikipedia.org/wiki/Austerity:_The_History_of_a_Dangerous_Idea https://en.wikipedia.org/wiki/Austerity:_The_History_of_a_Da...
  - JumpCrisscross 2y ago
    “Blyth argues that the case for increasing economic growth through austerity is overstated, is counterproductive when implemented during recessions, and has exacerbated the Eurozone crisis.” Yup! Unless you’re rich, deflation is historically cursed. (That said, I repeat that it hasn’t been proven to be bad.)

JumpCrisscross 2y ago

> it's a fact that all countries aim to keep inflation at around the 2% to 3% mark False [1][2][3]. > didn't Gaddafi of Libya try to introduce a Gold Dinar currency He also began using every other currency than dollars. That’s how rebalancing works. > Did any country manage to abandon their national fiat system without its leaders being assassinated or overthrown in a violent coup? Kind of suspicious Pegged currencies and currency boards exist. Also, what are you thinking of? Because we haven’t had a working economy with a fixed-supply currency since the Industrial Revolution, for obvious reasons. > no country will dare try the deflationary route. Why? Did you miss the Euro crisis? Austerity is forced deflation. > Why is it that only decentralized currencies without leaders were able to achieve this? Straw man. Every time crypto crashes, they’re hyperinflationary in real terms. [1] https://indianexpress.com/article/business/economy/rbi-targets-inflation-at-4-for-sustainable-economic-growth-9152006/ https://indianexpress.com/article/business/economy/rbi-targe... [2] https://www.ceicdata.com/en/argentina/consumer-price-index-inflation-target/central-bank-of-argentina-inflation-target https://www.ceicdata.com/en/argentina/consumer-price-index-i... [3] https://www.reuters.com/world/middle-east/turkey-inflation-hit-685-ahead-election-blow-ruling-party-2024-04-03/ https://www.reuters.com/world/middle-east/turkey-inflation-h...

throw0101b 2y ago
> Did you miss the Euro crisis? Austerity is forced deflation. One look at some of the history of austerity: * https://en.wikipedia.org/wiki/Austerity:_The_History_of_a_Dangerous_Idea https://en.wikipedia.org/wiki/Austerity:_The_History_of_a_Da...
- JumpCrisscross 2y ago
  “Blyth argues that the case for increasing economic growth through austerity is overstated, is counterproductive when implemented during recessions, and has exacerbated the Eurozone crisis.” Yup! Unless you’re rich, deflation is historically cursed. (That said, I repeat that it hasn’t been proven to be bad.)