[p13nty]

> How exactly does this work? To whom is money being redistributed? It's punishment for holding dollars instead of investing them.

If you want to print money you have to inject it somewhere, and that place where you inject new money benefits from it - they decide how to spend this new money and this stream of wealth skews economy.

This is high level understanding ofc, I am sure there are a lot of technicalities on how this can be done.

Also, I don't think you should not keep currency but instead you should "invest" at least you could do this when you had gold.

[arcticbull]

> Also, I don't think you should not keep currency but instead you should "invest" at least you could do this when you had gold.

This doesn't make sense. Just buy gold, today. What's stopping you? Backing a currency with anything forces everyone into that asset class. Backing it with nothing and keeping it tightly controlled allows you to back your net worth with whatever you want. Fire up RobinHood and buy you some GLD.