The Fed is Getting Serious about Creating a Fake err. Digital Dollar

Where did you come up with this figure 10%? Do you have any evidence to explain and back this? Just curious.

https://www.federalreserve.gov/releases/h41/current/


Which ones? Again curious.
https://www.newyorkfed.org/aboutthefed/fedpoint/fed32.html


That may be true but it still does not preclude the fact that digital currencies also makes it easier and more instant for the government to implement its monetary and economic policies.
Yep it means that when the Gov wants to send checks it can happen instantaneously instead of a few days or weeks because of processing and clearing. A digital currency has less friction than paper.


No the value of the currency is still affected by its productivity or I should say relative productivity and its monetary policy which in turn determines the relative demand/supply for them.
Nope, it’s all relative because we haven’t ever lived in a single currency world. When you say that the price of oil is up what you really mean is that the price of oil in dollar terms is up. Exchange rates constantly fluctuate based upon purchasing power parity (law of once price).

And rates is NOT the supply.
Interest rates drive the supply of money. This is basic macro. The lower the rate the greater the supply.

Exchange rates is determined by the relative demand/supply of a currency vs. another.
That’s what I said earlier.

Backing money by gold, NOT "gold supply" just eliminates or reduces the multiplier effect from the growth/shrinkage of money supply and has nothing to do with wars or oil production.
Which is exactly what I said — a commodity backed currency is practically the same as fiat except for a greater inducement of conflict.

You need to read more.
I can always read more, but on this topic, you’re the one who needs to catch up. :thumbsup:
 
probably, China would use the digital yuan for external uses only, somewhere like Africa (why would it want to mess up the inflation within China). China has got many "dictators" in Africa hooked with their cheaper loans and technologies in exchange for the mining rights... then China would use the influence to create some sort of trading bloc within Africa, and trades would be settled in the digital yuan).
 
Oh boy...where do I even start on this one.

I love the fact that OP thinks that the only thing of value is stuff he can hold in his hands. You're about 600 years late with that opinion, buddy.

Medici created the fractional reserve banking system in the 15th century and all you got back then instead a sack of gold is an IOU.

And your dollar bill is also nothing more than an IOU...that grants the bearer dollars in TAX CREDIT, lol.

So what's the difference between an electronic IOU and an IOU on paper? Paper bills cost money and natural resources to produce, can be counterfeited and will wear and tear over time. Digital IOUs need energy to run (albeit just a fraction of Bitcoin since the ledger is centralized), but they can be tracked over the entire world which basically is in tune with the newly imposed global tax on US companies.

Only advantages, my friend
 
Turveyd said:
More Great Reset mantra, removing cash, all transactions tracked everything you buy judged for CO2 useage and your social credit score.

By 2025 you might aswell be living in China.
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Oh, you mean what they once called a conspiracy theory?
 
longandshort said:
Backing money by gold, NOT "gold supply" just eliminates or reduces the multiplier effect from the growth/shrinkage of money supply and has nothing to do with wars or oil production.
Which is exactly what I said — a commodity backed currency is practically the same as fiat except for a greater inducement of conflict.
More...

No a commodity-backed currency is not a greater inducement of conflict. The two have nothing to do with each other. WHERE did you get that idea? That people fought in wars because money was backed by gold?

Anyway you still didn't refute what I said about what the government can do with digital currency which is the topic of this thread.
 
MrMuppet said:
Oh boy...where do I even start on this one.

I love the fact that OP thinks that the only thing of value is stuff he can hold in his hands. You're about 600 years late with that opinion, buddy.

Medici created the fractional reserve banking system in the 15th century and all you got back then instead a sack of gold is an IOU.

And your dollar bill is also nothing more than an IOU...that grants the bearer dollars in TAX CREDIT, lol.

So what's the difference between an electronic IOU and an IOU on paper? Paper bills cost money and natural resources to produce, can be counterfeited and will wear and tear over time. Digital IOUs need energy to run (albeit just a fraction of Bitcoin since the ledger is centralized), but they can be tracked over the entire world which basically is in tune with the newly imposed global tax on US companies.

Only advantages, my friend
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Please read the articles via the links that I included in the OP. That is what I am talking about in this thread, what the government can do with digital currency and how it can permeate to dictate the policies of others.
 
JSOP said:
No a commodity-backed currency is not a greater inducement of conflict. The two have nothing to do with each other. WHERE did you get that idea? That people fought in wars because money was backed by gold?

Anyway you still didn't refute what I said about what the government can do with digital currency which is the topic of this thread.
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1- Have you not heard of mercantilism?
2- The government can and already does institute such policy, it’s just currently at a higher cost.
 
Agree and I don't see how this would solve any existing major problems at all. Sure, payments will be faster, no more physical currency creation, replacement, destruction, tracing of digital currency. Alright, but those are all some small issues. I still no real benefit over the status quo.

But you gotta give something to the masses I guess, in exchange for banning any and all involvement with crypto currencies.

longandshort said:
Flabbergasted by how misinformed this view is. Only about 10% of annual gdp is available in physical currency (there is literally less than $3t in printed money).

The Federal Reserve already creates digital assets through reserves (which exist digitally lol). Digitizing the dollar just means there will be a centralized node for clearing, just like there already is for most other financial assets. It makes sense for sovereigns to digitize their currencies because it simplifies the exchange process. Right now it is expensive for banks/processors/consumers to clear (takes a few days, even wires take some time). This reduces costs and improves the competitiveness of a currency (what people use to pay other people for things).

@JSOP I recommend reading through a money, banking, and international trade chapter in nearly any macro 101 textbook. What effects the value of a currency is relative demand (economic activity) and supply (rates). Furthermore, commodity backed currencies like “petro-dollars” or gold, are not tied to things like productivity and economic activity at all. Gold supply was what caused wars, and oil production is like money printing but in the millions of barrels per day lol.
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