Why Nostr? What is Njump?
2023-05-04 19:39:40
in reply to

thebitcoinrich on Nostr: Postwar Japan and Germany were pegged to the USD after Breton Woods and until 1971z ...

Postwar Japan and Germany were pegged to the USD after Breton Woods and until 1971z China is still pegged to the USD at an artificially low rate. Calling them “strong currencies” is not being intellectually consistent. Also consider that during the 1800s all major industrialized countries were on a gold standards and I’m talking about the relative strength of currencies.

It seems that a relatively stronger currency just means that a country’s manufacturers have to continually move up the value curve to compete. A hard money results in higher “natural” interest rates, which requires higher ROI investments (aka actual productive investments of debt), which then lead to higher capital formation, and finally higher quality, more complex manufactured good.

In other words, a country on a Bitcoin Standard is going to be making chips and spaceships, not plastic widgets.

Would we already be on Mars if not for Nixon closing the gold window in 1971?
Author Public Key
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