I am not condoning this or backing the idea, but...
The notion that the U.S. dollar will ever be backed by gold—or worse, BTC—is not just misinformed; it reveals a profound ignorance of both monetary policy and economics.
Floating currency, like the U.S. dollar, is one of the most powerful tools the Treasury has at its disposal. By not being tied to any particular commodity, such as gold or BTC, the government retains the flexibility to manage monetary supply, control inflation, and respond dynamically to economic crises. To suggest that the U.S. would willingly surrender this critical tool is not only naïve but economically reckless.
First, let’s talk about the gold standard. The U.S. abandoned it for good reason. When the currency is tied to gold, the government’s ability to influence the economy becomes severely limited.
The supply of gold itself is finite, and as such, a gold-backed currency would prevent necessary expansions of the money supply to match a growing economy. Historically, economies bound to the gold standard faced severe deflationary pressures, which limited growth and made it harder to respond to recessions.
Now, turning to the ridiculous notion of backing the U.S. dollar with BTC. It’s not just impractical, it would be outright detrimental to the stability of the global economy. BTC is highly volatile, lacks intrinsic value, and has no central authority to manage its supply, making it a poor and irresponsible choice for any sovereign currency backing.
The sheer volatility of BTC could wreak havoc on the economy, plunging it into unpredictable cycles of boom and bust. Tying the dollar to such an unstable asset would threaten not only the U.S. economy but the global financial system, which is built on the dollar’s relative stability.
The ability to control the money supply—through tools like interest rates, open market operations, and fiscal policy—is essential for managing economic growth and addressing downturns. Surrendering this power to a volatile and unregulated asset would essentially be economic suicide. It’s not merely misguided to suggest this; it's dishonest.
It misleads people into believing that some mysterious asset like BTC holds the key to stable economics, when in reality it would lead to chaos.
Those who promote these ideas aren’t just ignorant—they’re promoting something dangerous. The idea of tying the U.S. dollar to BTC doesn’t even qualify as an economic theory; it’s reckless fantasy, and perpetuating it borders on being criminally misleading.
Any person claiming otherwise isn’t just wrong, they’re acting in bad faith.
S. Tominaga AKA CSW
Oct 18, 2024
https://x.com/CsTominaga/status/1847152344989098112?t=z7jalkCMQAANt32R9pOzyg&s=19
https://t.me/S_Tominaga/1497
The notion that the U.S. dollar will ever be backed by gold—or worse, BTC—is not just misinformed; it reveals a profound ignorance of both monetary policy and economics.
Floating currency, like the U.S. dollar, is one of the most powerful tools the Treasury has at its disposal. By not being tied to any particular commodity, such as gold or BTC, the government retains the flexibility to manage monetary supply, control inflation, and respond dynamically to economic crises. To suggest that the U.S. would willingly surrender this critical tool is not only naïve but economically reckless.
First, let’s talk about the gold standard. The U.S. abandoned it for good reason. When the currency is tied to gold, the government’s ability to influence the economy becomes severely limited.
The supply of gold itself is finite, and as such, a gold-backed currency would prevent necessary expansions of the money supply to match a growing economy. Historically, economies bound to the gold standard faced severe deflationary pressures, which limited growth and made it harder to respond to recessions.
Now, turning to the ridiculous notion of backing the U.S. dollar with BTC. It’s not just impractical, it would be outright detrimental to the stability of the global economy. BTC is highly volatile, lacks intrinsic value, and has no central authority to manage its supply, making it a poor and irresponsible choice for any sovereign currency backing.
The sheer volatility of BTC could wreak havoc on the economy, plunging it into unpredictable cycles of boom and bust. Tying the dollar to such an unstable asset would threaten not only the U.S. economy but the global financial system, which is built on the dollar’s relative stability.
The ability to control the money supply—through tools like interest rates, open market operations, and fiscal policy—is essential for managing economic growth and addressing downturns. Surrendering this power to a volatile and unregulated asset would essentially be economic suicide. It’s not merely misguided to suggest this; it's dishonest.
It misleads people into believing that some mysterious asset like BTC holds the key to stable economics, when in reality it would lead to chaos.
Those who promote these ideas aren’t just ignorant—they’re promoting something dangerous. The idea of tying the U.S. dollar to BTC doesn’t even qualify as an economic theory; it’s reckless fantasy, and perpetuating it borders on being criminally misleading.
Any person claiming otherwise isn’t just wrong, they’re acting in bad faith.
S. Tominaga AKA CSW
Oct 18, 2024
https://x.com/CsTominaga/status/1847152344989098112?t=z7jalkCMQAANt32R9pOzyg&s=19
https://t.me/S_Tominaga/1497
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