EvilSandmich on Nostr: As usual, this gets it (mostly) backwards though: >The drawback is that, in the years ...
As usual, this gets it (mostly) backwards though:
>The drawback is that, in the years since the end of the gold standard, there’s been a significant and growing lack of discipline when it comes to government spending.
Nixon had to end the gold standard precisely because a decade of proliferate spending meant that the government was unable to defend the standard. We see something similar happening today where the government is repeatedly abusing the underpinnings of the currency with no care for what will happen when it breaks. (For instance, some robot historian will say the dollar crashed in 2030 because the Saudis walked away from the Dollar-Oil agreement, when in actuality they walked away because of weakened faith in the dollar).
>The drawback is that, in the years since the end of the gold standard, there’s been a significant and growing lack of discipline when it comes to government spending.
Nixon had to end the gold standard precisely because a decade of proliferate spending meant that the government was unable to defend the standard. We see something similar happening today where the government is repeatedly abusing the underpinnings of the currency with no care for what will happen when it breaks. (For instance, some robot historian will say the dollar crashed in 2030 because the Saudis walked away from the Dollar-Oil agreement, when in actuality they walked away because of weakened faith in the dollar).