MMT

[doodle]

I agree with Dalio's logic. I don't see any appetite for a return to a gold standard type era of monetary conservatism. Is inflation in the cards long-term? That is a much more complicated question.

https://www.bloomberg.com/news/articles ... -it-or-not

[Libertarian666]

No one expects a return to the gold standard... until it happens.

[FarmerD]

No one expects a return to the gold standard... until it happens.

Exactly. I'm sure there isn't a single politician or central banker who wants a return to a gold standard. However, they may not have any other choice. It may well be forced on them.

[Libertarian666]

No one expects a return to the gold standard... until it happens.

Exactly. I'm sure there isn't a single politician or central banker who wants a return to a gold standard. However, they may not have any other choice. It may well be forced on them.

Yes, that's what history shows. Once faith in a currency is lost, the only way ever found to create a new currency that will be acceptable is to base the new currency on gold.

[yankees60]

No one expects a return to the gold standard... until it happens.

Exactly. I'm sure there isn't a single politician or central banker who wants a return to a gold standard. However, they may not have any other choice. It may well be forced on them.

Yes, that's what history shows. Once faith in a currency is lost, the only way ever found to create a new currency that will be acceptable is to base the new currency on gold.

I don't know the answers which is why I am asking. When is the last time a new currency was created in our country / any country (of note)?

Vinny

[Libertarian666]

No one expects a return to the gold standard... until it happens.

Exactly. I'm sure there isn't a single politician or central banker who wants a return to a gold standard. However, they may not have any other choice. It may well be forced on them.

Yes, that's what history shows. Once faith in a currency is lost, the only way ever found to create a new currency that will be acceptable is to base the new currency on gold.

I don't know the answers which is why I am asking. When is the last time a new currency was created in our country / any country (of note)?

Vinny

Lots of times in many countries, notably after hyperinflations, e.g., post WWI Germany, post WWII Hungary.

[boglerdude]

We aint going back to gold. much more common are currency redenominations

https://en.wikipedia.org/wiki/Redenomination

[Kbg]

I think the main thing is we live in a digital world now and our money really is 0s and 1s tracked in a bunch of ledgers. I don't see that changing unless life as we know it ends or something else replaces the digital age.

[Kriegsspiel]

It also seeks to allay fears over budget deficits and national debts by arguing that countries like the U.S., which have their own currency, can’t go broke and have more room to spend than is usually supposed -- provided inflation is subdued, as it is now.

Yes, we can't go "broke" in the sense that we'll run out of money. But the same situations that would lead to a country going broke are also the ones that would lead to hyperinflation, so it amounts to similar levels of pain. Pick your poison. Or avoid the poison and have some fiscal restraint.

The article makes it seem like Dalio (I haven't read his essay yet) is saying MMT is inevitable if we want to continue doing what we're doing, which is a very large caveat. Where's pmward when you need him to expound on Dalio?

Dalio gave examples of how such policies could evolve, without endorsing them. Central banks might print money directly to finance government programs -- bypassing the need to sell bonds. They could buy real estate “which would then ideally be used for socially beneficial ends.” They could also write off debts hanging over the economy, in a kind of “jubilee.” In downturns, they could deliver cash straight to the public, an idea widely known as “helicopter money.”

There are risks, Dalio acknowledged. Such policies would put “the power to create and allocate money, credit, and spending” in the hands of politicians.

“It’s difficult to imagine how the system will be built to achieve that,” he said. “At the same time it is inevitable that we are headed in this direction.”

[Tortoise]

Even if we never officially “go back” from digital currencies, gold will probably always be used as an unofficial parallel currency and store of wealth by billions of people.

Look at India, with its population of over 1 billion. Despite being very tech-savvy with smartphones and digital everything, India’s people distrust banks and fiat currency; it’s baked into their culture. So gold ownership among Indians is very high, often in the form of jewelry. Indian households own a large fraction of the world’s total gold supply.

So gold currency is not incompatible with a digital, fiat world. It can, and already does, exist in parallel with high technology and fiat currencies.