Comment on Drop your unpopular opinions here because c/unpopularopinions is filled with popular opinions
TranscendentalEmpire@lemmy.today 3 days agoYou’re missing the point, and the unemployment stats are in the table at the end of the text from the link
Ahh I found the peak unemployment column, but they do not support your argument. Both the great depression and the recession in 37 are well above COVID. Plus we started recovering from COVID in like 2 months
tied to an arbitrary value
First, the value of currency is largely set on people trusting the American government to pay their bills via Treasury bonds.
Secondly, gold itself is more arbitrarily valued than the dollar and is much more subject to inflation. Just look at the volatility in the gold market.
to the chronology it goes like this:
And what was the reason we abandoned the gold standard…
Gold won’t. It will always be used as a measure of wealth, regardless of a particular currency’s collapse.
Gold can and will eventually become devalued if it ever becomes the standard once again. There has only been little over 200k tons in circulation throughout history. There is about half that of proven and currently economically minable gold known right now, there’s about an additional 100k tons of unknown or currently uneconomically recoverable gold in the earths crust. There’s also millions of tons suspended in the ocean, more than that in the core, and lords knows how much in space.
If gold becomes the end all be all standard of value then someone will find a way to increase supply. Money has always been about trust, value is completely subjective.
arotrios@lemmy.world 3 days ago
And thus effectively imaginary, proving the point in my original post. And like all imaginary things, it only holds power over us if we believe in it.
As to gold vs. fiat, if I offer you a currency backed by gold or the same amount in a fiat currency back by the faith in a nation-state, which would you choose, all other things being equal? Which is the more stable investment? Which will hold value after the nation-state collapses?
Hint: it’s not fiat.
TranscendentalEmpire@lemmy.today 3 days ago
Yes, but you went on to make claims that gold is somehow inherently different. Which it is not. Gold is only valuable valuable because you believe it is as well.
Fiat… The nation is less likely to have a massive depression and more able to recover from one of it does happen. I don’t think you understand that it doesn’t matter if a currency is backed by gold or not. You are still trusting the country to pay you that gold, or to release the gold at the price you originally bargained for… That doesn’t happen in a recession.
Why do you think the US made people turn in their gold during the depression and then cease all redemptions?
Stable… Again, fiat currency. Value after the collapse of a nation state? Who the hell knows? At this point if we experienced a complete collapse I would probably rather have the value in guns and ammo. However, i’m not betting on the world to end any time soon.
Dymonika@lemmy.ml 3 days ago
I thought that was only gold from criminals or certain people, not the general populace.
TranscendentalEmpire@lemmy.today 3 days ago
Nope, it was illegal to have more than $100 worth of gold.