/biz/ - Business & Finance

>>56091393
when the dollar was first a thing with the fed, with an elastic money supply, they were there to provide liquidity, currency to facilitate all the trades. And then when the economy slowed down, they would pull all that money back. It was created to deal with the boom and bust system, because the more transaction, the more need for currency, and the more hoarding of wealth happenes at the same tiime. When the most industrious among us start to accumulate their profits, the gold, the currency, that deprives the rest of us, and the fed would interject money to keep the commerce flow going. he world loved it. Went crazy over it. They started exchanging gold for USD, because what was important was transactions could continue and the spice could flow. It provided the liquidity, what was important. Well it came to august of 71 and they wanted to trade all those dollars for gold. Now they wanted security instead of liquidity. The US had to go into massive debt to supply all of this. The Triffin paradox. How do you supply the world a currency when you are an exporter of goods? You have to buy their shit. Thats why the US moved from a manufacturing base to a consumer. We started selling off massive amounts of debt and living like kings. The cantillion effect. which says manufacturing and bringing in new stuff elevates your standard of living and leads you to poverty unless you figure out a way to bring new money in. then greshams law kicked in which is bad money chasing now good. The end of the gold standard was because it was all hoarded. Same thing is happening with dollars, everyone is hoarding dollars, and when you have a different currency used, thats the BAD currency
. Bad chasing out good. A new currency is introduced that seems good, but its not. But the people are convinced of it. Triffens delima, cantillion effect, and greshams law, the coordinated effort is to fool you into thinking the dollar is failing. Dollars are getting harder to find