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I wish the United States of America’s debt was immediately paid off on January 1st, 2019 AD, as defined on Earth, with the act of ‘paying off’ the debt being magical in nature and not causing massive pollution.

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level 1

Granted. At the opening of the NYSE on the 2nd, the world notices that there are no longer bonds or securities being held from USA.

Global panic sets in as trillions of dollars in debt is erased overnight leading to a meltdown in economies of global powers such as China, UK, Germany, Japan, France, Russia, and Saudi Arabia.

In the USA, the national debt that was barring congress from allowing huge tax cuts for wealthy individuals is erased. House prices inflate as a bull market takes effect. Cost of living everywhere becomes like San Francisco.

Then shortly thereafter, the bubble pops and we go into a serious depression. Lasting nearly a decade, banks shut doors, businesses close, unemployment and homelessness skyrocket.

level 2

Damn son

level 3

In all seriousness, the world does run on US debt.

level 4
597 points · 12 days ago

FIAT Money = Debt. No debt, no money.

level 5
177 points · 12 days ago

We really need to start investing in different cars.

level 6

Fiat money breaks down too easily. We really should start using Toyota as an investment vehicle, as it retains its value better and is much more reliable.

level 7

I like honda for reliability

level 5

Ummm... you know that the us government issued bonds when we had a gold backed currency, right?

level 6

I think he's talking specifically about the FIAT system

5 more replies

level 6

Inflation now the gold your family gave is worthless..... but if it was still gold then you're good

level 7

https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart

Gold still holds value and has kept with inflation. The link shows the price of gold per ounce and you can select inflation adjusted or not. It is interesting to see that when currency was back by gold the price of gold stayed constant but because of inflation the the actual value of gold was decreasing. Looking at those charts, it actually shows a trend that if we kept a gold back currency the the value of your gold would depreciate in the economy.

level 8
11 points · 12 days ago

The price of gold stayed constant during the gold standard because the dollar was defined as 1/35 an ounce of gold or $35 per ounce. It wasn't a coincidence.

level 9

Right, I get that, but you still had inflation. So the buy power of that one ounce was decreasing it looked like. So if you bought a bunch of bricks, over time you would be loosing buying power and effectively loosing money. Unless the value of the dollar was changed to more per ounce, and at that point what's the difference between a Fiat currency? It is just an arbitrary number assigned to some weight of gold.

level 10

It is just an arbitrary number assigned to some weight of gold.

You can't make a gold bug understand this fact. They don't understand how fiat currency works, nor its benefits in running a modern economy.

level 8

What made the metal gold so valuable in the first place? Why is a rock used as currency?

level 9

Shiny

1 more reply

level 7

Same price it was before in debt we trust.

3 more replies

level 5

If it was cryptocurrency, would it be different? (Serious question)

level 6

Currency is currency, no matter who or what is backing it. Eventually you can inflate and desecrate.

22 more replies

level 5

This is the counterpart to John Maynard Keynes' economic treatise, Mo' debt, Mo' Money.

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