@BowsacNoodle @shortstories @Tfmonkey @VeganMGTOW @white_male
You're right. It's not the gold currency that's going up, it's the fiat currency that's going down! It would be a race to the bottom among the fiat bullshit.

@Zeb @BowsacNoodle @Tfmonkey @VeganMGTOW @white_male

Because it is a race to the bottom

That is why getting lots of things like concrete, metals, food, water, chemicals, in exchange for high inflation is the way to win

For example

Selling your oil to foreigners in exchange for money is a way to lose

Buying oil from foreigners with useless hyper inflated money is a way to win

That is why not drilling for oil but purchasing oil is a good strategy

Hoard your oil underground until collapse

@shortstories @Zeb @Tfmonkey @VeganMGTOW @white_male My larger point is your economy doesn't grow fast enough when its velocity of money is constrained by liquidity, particularly when said liquidity can be controlled by hostile larger parties. Sometimes there's pragmatic value for seemingly 💩 systems.

@BowsacNoodle @shortstories @Tfmonkey @VeganMGTOW @white_male
Nowadays we have electronic payment systems so velocity of money is not really an issue. The only thing constraining velocity is the government regulation really.

@Zeb @shortstories @Tfmonkey @VeganMGTOW @white_male Yes. But wouldn't 'Goldtopia' suffer a liquidity crisis with all of its money held as a value store by China? Nobody can buy bread when there's not enough money to go around because it's limited to physical assets. Do you see what I'm saying? George Soros could hypothetically buy out the economy of 'goldtopia' using his combined purchasing power and acquisition of assets through other markets and arbitrage. The vulnerability is real.

@BowsacNoodle @shortstories @Tfmonkey @VeganMGTOW @white_male
In theory, maybe, assuming prices would never go down, which they would, as they had in US for decades in the 17-1800s. But I'll tell you what has happened historically. Never has one country or even an entire continent has been able to hoard all the gold in the world. And all nations have also used silver and copper alongside gold as their daily trading currency, that are much more abundant. Prices would be much lower than today too.

@Zeb @shortstories @Tfmonkey @VeganMGTOW @white_male But how would such a thing happen today when the potentiality of external influence coming in to horde your currency for its stability exists? This still doesn't address the ledger issue: what to do with lost/damages notes? Do we assume this never happens, or do we force the currency to only be digital to prevent it? It could still be lost digitally, as we've seen.

@BowsacNoodle @Zeb @shortstories @Tfmonkey @VeganMGTOW @white_male gave my mom a carton of eggs for free, she said she's gonna boil them all, i dunno why.

@givenup @BowsacNoodle @Zeb @shortstories @Tfmonkey @VeganMGTOW @white_male Deviled eggs would be an outstanding reason.

@BowsacNoodle @shortstories @Tfmonkey @VeganMGTOW @white_male
I worked for a central bank a few years back and if you lose your note, it's gone. Damaged notes are simply replaced: you can go to your bank today with a damaged note, they will catalogue it and give you new bills.
The printing and distribution of new notes and coins are done based on forecast and planning, where the total new amount added is essentially mandated by the government.

@Zeb @shortstories @Tfmonkey @VeganMGTOW @white_male Doesn't a hard asset backed currency become disjointed like this, or is the theory to have enough in reserve to become functionally "to big to fail" with failure being a run in hard asset exchange.

@BowsacNoodle @shortstories @Tfmonkey @VeganMGTOW @white_male
As long as you don't overissue certificate of deposits that cause multiclaim on the same reserve (fractional banking), you don't need to worry. It's the most vital operation in banking, the balance between deposits and loans to avoid bank runs. It keeps the usury and greed in check. But it's always important to hang the bankers that use government to bail themselves out.

@BowsacNoodle @shortstories @Tfmonkey @VeganMGTOW @white_male
It's ok, if a country wants to hoard your currency, it's fine. First, they would not get access to your currency directly (swap lines) but to your bonds. Second, it would appreciate your gold currency every time they buy, making each purchase more expensive than the previous one. It would be politically suicidal too to put all your reserves in an external currency, as they can always simply sanction you or cancel your transactions.

@Zeb @shortstories @Tfmonkey @VeganMGTOW @white_male Why wouldn't they get direct access? What would stop China from offering consumers 50% discount if paid in Goldtopia bills?

@BowsacNoodle @shortstories @Tfmonkey @VeganMGTOW @white_male
Nothing. It would be a great deal for consumers, specially from goldtopia that is getting everything half-off!
It requires a high-level of trust to give foreign countries directly access to your central bank. Read up on Swap Lines, the system already exists today.

@Zeb @shortstories @Tfmonkey @VeganMGTOW @white_male I'm not talking about swaps though. I mean actual consumer use bills. In other words, the risk that the currency's dual usage (being equivalent to a precious metals ETF) makes it a popular pickup for adventurous or scheming entities.

@BowsacNoodle @shortstories @Tfmonkey @VeganMGTOW @white_male
To all your points, goldtopia has several drawbacks: it curtails government spending, it's very harsh on financial bubbles and it's not forgiving to debtors and failing businesses.
Also, you cannot have a welfare state while on the gold standard.
But the biggest drawback of all is, naturally, war! Since you can't simply print money, you gotta legit sell your bonds or tax your citizens heavily to fund your wars.

@Zeb @BowsacNoodle @Tfmonkey @VeganMGTOW @white_male

"the biggest drawback of all is, naturally, war! Since you can't simply print money, you gotta legit sell your bonds or tax your citizens heavily to fund your wars."

That is good because then people will be less likely to want to go to a war unless it is perceived as necessary for them to survive

@Zeb @shortstories @Tfmonkey @VeganMGTOW @white_male You seem like a good person to ask this; what of a two-currency system? I was thinking about something with hard currency and fiat, with fiat having limited use and expiration dates preventing excessive inflation. Blockchain again where the government snips a fraction of a penny every time it moves hands for the fiat (it goes into a ledger to use for new fiat in the future) and potentially a hard expiration date for individual runs of minted fiat. Sounds like a neat experiment. Of course the issue of preference comes in, but I think market pricing would accommodate this and certain goods would work out either way (petty cash type expenses).

@BowsacNoodle @shortstories @Tfmonkey @VeganMGTOW @white_male
We kinda have an existing system like this today in Peru, where you can use the local soles or even withdraw dollars directly from atms (considered the harder currency). It works fine as long as you have a floating exchanging rate and can exchange one for the other at any bank.
Regarding your experiment, that's exactly how fiat money was created, by circulating gold IOUs along real gold coins, where the IOU was cheaper due to risk.