I’m in the middle of reading a book about the day the US dollar went off the gold standard and I find it illuminating the rationale for their decision. I see often in BTC Maxi groups that the fall of the dollar was due because of that single action, but the more I read and am revealed the circumstance to which the Nixon administration was led to moving to fiat is one of boldness and not stupidity.

Consider that the other developing countries at the time, ie Japan and Germany were pegged to the US dollar. One option was to increase the price of gold from 35$ to 38$, but the doubt was that if the US did that then the other countries would do the same nullifying the central banks move to lowing the purchasing power of the dollar.

And then there was the fact that those same countries put trade block on good imported from the US. In other words these countries can sell their cheap goods to the US but that action was not reciprocated. The books draw out those who had nationalist sympathies and called out foreign countries piggy backing on the US, while other were more globalist and wished to see the Bretton Woods pact fulfilled.

I am still not finished with the book, but when such events are put to context I see the logic, and start to wonder, In 100 years from now when the BTC experiment is a success, will there be a need for a long tail of inflation by changing the code as Keynes theories about money? Or will the divorce of the state and money bring about a new paradigm in which inflation is confined to other protocols such as stable-coins?

Anyway that my rant for the day.

I’m in the middle of reading a book about the day the US dollar went off the gold standard and I find it illuminating the rationale for their decision. I see often in BTC Maxi groups that the fall of the dollar was due because of that single action, but the more I read and am revealed the circumstance to which the Nixon administration was led to moving to fiat is one of boldness and not stupidity.

Consider that the other developing countries at the time, ie Japan and Germany were pegged to the US dollar. One option was to increase the price of gold from 35$ to 38$, but the doubt was that if the US did that then the other countries would do the same nullifying the central banks move to lowing the purchasing power of the dollar.

And then there was the fact that those same countries put trade block on good imported from the US. In other words these countries can sell their cheap goods to the US but that action was not reciprocated. The books draw out those who had nationalist sympathies and called out foreign countries piggy backing on the US, while other were more globalist and wished to see the Bretton Woods pact fulfilled.

I am still not finished with the book, but when such events are put to context I see the logic, and start to wonder, In 100 years from now when the BTC experiment is a success, will there be a need for a long tail of inflation by changing the code as Keynes theories about money? Or will the divorce of the state and money bring about a new paradigm in which inflation is confined to other protocols such as stable-coins?

Anyway that my rant for the day.