Funny

6827 readers

486 users here now

General rules:

Be kind.
All posts must make an attempt to be funny.
Obey the general sh.itjust.works instance rules.
No politics or political figures. There are plenty of other politics communities to choose from.
Don't post anything grotesque or potentially illegal. Examples include pornography, gore, animal cruelty, inappropriate jokes involving kids, etc.

Exceptions may be made at the discretion of the mods.

founded 1 year ago

MODERATORS

[email protected]

118

Line go up (files.catbox.moe)

submitted 7 months ago by [email protected] to c/[email protected]

8 comments fedilink hide all child comments

you are viewing a single comment's thread
view the rest of the comments

[–] [email protected] 7 points 7 months ago (1 children)

Well the gold standard had to be abandoned when most of Europe switched to backing up their money with the value of US dollars after WW2, and then France wanted to exchange all the US cash they could get their hands on for gold so the US had to then ship all that gold to France and after that the fear was more countries would do the same thing.

[–] [email protected] -2 points 7 months ago (1 children)

The gold standard should never have been abandoned.

Nixon untethered us by doing so,
now the inflation balloon will keep on rising as a result.

[–] [email protected] 3 points 7 months ago

The gold standard should never have been abandoned.

https://www.npr.org/sections/money/2011/04/27/135604828/why-we-left-the-gold-standard

It was originally abolished in 1933, but then replaced by the Bretton Woods system wich claimed to be a gold standard but actually wasn't one. It was a pinky promise to exchange Dollars for gold, but the US never had enough gold to actually go through with that promise when someone tried it with a larger amount (wich happened in 1971 when france called that promise in and blew up the entire bluff)

The gold standard was abolished because having it chokes your economy. Not being able to adjust the amount of money in circulation is severely limiting to investment, because if the economy grows but the amount of money doesn't then money becomes more valuable simply from sitting around. And then why open a factory and take risks when you can just put your money in a sock as investment. A slight inflation is considered beneficial because it encourages people to use their money instead of letting it sit around.

The only way to increase the amount of money in a true gold standard system is buying more gold, wich is very expensive for the government and puts you at the mercy of gold exporting countries.

The reason why a gold standard was established in the first place was the fear that trust in paper money wasn't enough to keep it valuable. Turns out it is enough, as long you're careful about how much you print

https://old.reddit.com/comments/17bdfrp/comment/k5in6e3