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Terribly performing memecoin (lemmy.world)
submitted 2 months ago by to c/memes@lemmy.world
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[–] 2 points 2 months ago (1 child)

We don't have a fixed money supply in the modern system when banks can issue debt. Not even close. I suggest you read the Bank Of England's paper called "Money Making in the Modern Economy" which I mentioned.

Yes, I'm quite familiar with that paper.

I'm not arguing that we have a fixed money supply. I was saying that if we were on a gold standard, in an alternative universe hypothetical, where the money supply was close to fixed, we would probably see worse price volatility.

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  • [–] 1 point 2 months ago*

    Oh, yeah, Gold seems to fail miserably as a trade token in a growing economy.

    However I'm not making the case that Gold should replace fiat currencies, I'm making the case that Gold is a good long term store of value in times of large political risks such as the ones we seem to be going through in the West right now (most notably in the US, though the explosion in wealth inequality and growth in the Far-Right is far from only there) as well as during economic crashes with global impact (such as what's likely to happen when the AI bubble blows), whilst even the currencies of major stable countries are much less so.

    There's not going to be a "Brexit" impacting Gold as Brexit impacted the GBP or an end of the dominance period of the nation issuing Gold as there is sure to be for the USD.

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