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by monokh
2008 days ago
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An asset being speculated on does not rule that it does not have inherent value. Every asset has a speculative component, just look at the stock market. > The beauty of a fiat currency is that you can maintain it's value simply by adjusting supply. There is very little attractive about the idea that a group can devalue currency on a whim. That's exactly why people opt in to Bitcoin. > Is there any sign that there is an over-supply of dollar which would justify leaving the dollar until it is crashed? Yes. Have you seen M1[1] this year? [1] https://d3fy651gv2fhd3.cloudfront.net/embed/?s=unitedstamons... |
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You can turn this around: There is very much attractive about the idea that a group can maintain the value of a currency on a whim.
>> Is there any sign that there is an over-supply of dollar which would justify leaving the dollar until it is crashed?
> Yes. Have you seen M1[1] this year?
There is definitely more supply, but is it too much? Can't this be the result of decisions that maintain the value?
If that money is just somewhere on the books, but people don't have more money to spend, then the value of things remains stable.
The value of money depends not only on the amount of available money but also on the velocity with which it is spent. As far as I know, credit cards have increased the velocity by which people are spending money which increased the supply of money and stimulated the economy.
Now, during this crisis, do people spend money with the usual velocity? If not, then that reduced speed has to be compensated by supplying more money.