Youre retarded so allow me to simply it for you. My credentials are that im Hokkien, the Jews of East Asia.
Basically, the world trades in USD, the reserve. USD is backed by global trade and global debt. Everyone owes each other in USD, driving up demand for USD and giving it value. This allows the US to export inflation to every other country on this earth by printing vast sums to enrich themselves enjoy deficit spending so long as everyone continues to buy dollars with their own currencies or with goods and services.
If the music should stop, as in, no one buys USD with other currencies or goods or services, it all comes crashing down for America due to its massive federal debt.
Basically, US is rich because everyone uses USD.

>>18368519
Yes but how come the journey to that point was filled with currency debasement.
Shouldn't america have gotten poorer because they ended silver, then created a fed, then ended gold?

>>18368523
>Shouldn't america have gotten poorer because they ended silver, then created a fed, then ended gold?
Did you read my post? The world trades in USD, giving USD immense value. Would you rather a gold based currency backed by speculation on the worth of shiny rocks or a fiat currency backed by global debt?

FIAT MONEY IS AKIN TO A HOT AIR BALLOON: LIGHT AND BUOYANT, BUT WEAK AND VOLATILE.

>>18368513
it exported its inflation overseas

>>18368533
Silence, elotero

>>18368513

It was a bait and switch. First US dollar was backed by real gold, and US said to the world you don't need gold just use USD, it is as good as gold and you can redeem USD for gold at any time. Now USD became the reserve currency. Then US government rugged everyone by closing the gold window.

>>18368513
>print money to buy labour
>use labour to expand productive capacity
>now more goods are being produced
>prices fall, purchasing power increases

to quote a European economist in the aftermath of WW2
"it costs the US treasury a few cents to print a $100 bill, we need to exchange $100 worth of actual goods to get one"

They keep printing money, other people give them things with actual value for it.
Very simple

>>18368533
Hot air balloons are awesome

>>18368523
The person you responded to is retarded.
But you know whats even more retarded pinning your currency to something worthless in a practical sense like gold.
You realize that gold itself was fiat currency its only value was in the fact people believed it had value.
Modern currency are backed by the output of the country as a whole and the stability of the system. Instead of a random rock.

>>18368773

yes,but fiat can be printed infinitely, so each paper will back smaller and smaller share of the output

>>18368513
>how did printing money out of thin air and forcing the world it use it make a country rich
geez idk anon, can't possibly guess

>OP learns about financialization
Good on you. Keep digging. Currency debasement is integral to a system based on debt. When everyone needs that currency, it's more important than having it backed by some randomly chosen "scarce" resource. When your money is completely fake, it's easier to just use epic math formulas to make it grow exponentially without any physical limitations of "real" materials or labor.

>>18368513
If you tell people your money is the debt you collect, you can get people to move without paying them at all while being highly motivated, maybe this gives the upper hand in relative scale so you literally work harder than other nations, but in the end, everyone will want to get paid at the same time and that's when things fall apart.

Maybe the key is convincing people to work for you, then killing them when they don't work anymore or want to be paid. As long as you sustain this cycle you will achieve peak efficiency.

>>18368773
I trust a shiny rock far more than I trust some richfags who print infinity+ money just to give to other richfags so they can continue their pedophilic satanic cult ring.

>>18369105
You would sing a different tune if you were part of their pedophile ring.

>>18368519
>If the music should stop, as in, no one buys USD with other currencies or goods or services, it all comes crashing down for America due to its massive federal debt.
It's the opposite though, that would make it much easier to pay the debt.

>>18368773
Except it's not "some random rock"

The reason gold is valued as money is because its chemical properties (doesnt corrode) and limited supply gives it characteristics well suited to function as money. The only reason silver was used alongside gold is that its easier to divide. If you used copper or some other random rock, demand would go up and increased mining/refining would dilute the existing supply. Doesnt happen with gold.

The belief you do need is that asteroid mining or some alchemy discovery to synthesize gold doesnt happen. "Belief that it had value" makes it sound faith based, which it isnt

>>18368513
Loaded question, America's wealth is generally due to technology and industrialization.

>>18368533
>Mexishitters talking about economics
Just clean the toilet, tostiloco.

>>18368533
This

>>18369006
O no you are retarded.
Nobody assinged a benjamin to Tracys day of labour at the BBQ joint.
Its belief. Yes overprinting currency weakens it. But only if belief weakens. There is no direct monetary connection. Only the one we make in our minds, If people actually understand how currency works we would print trillion dollar notes tomorrow and pay off the national debt.

>>18368773
Gold is a tangible, finite resource. It doesn't really have value other than what people believe it has, true, but you can't turn rocks into gold. You can, however, print more dollars.

>>18368587
>Oh boy I'm so glad I can buy more funkopops with my increased purchasing power! Surely there are no problems with creating value out of thin air.

>>18369105
meds now.

>>18370491
Yes it is finite. That makes it especially shit at as money. There isnt enough gold on the planet to back a fraction of the currency in circulation.

>>18370826
that's part of the problem lol

>>18368513
>it ended the gold standard in 1933 for the public which made it a superpower.
?????????????
What the fuck
People actually believe this

>>18370833
why?
I am not talking about printing too much money, I am talking about not printing enough.

>>18370843
Yes retarded people.

>>18370857
I mean I'm not advocating for impoverishing most all but a few nations that can meaningfully assert themselves, I'm not sure it is a winning or necessary strategy. I just think it might be kind of stupid to sustain unsustainable growth with imaginary value ad infinitum. Maybe ending the speculation would solve all the problems with fiat currency, maybe, I doubt it, but whose to say you can't have your cake and eat it too? I don't think anyone will try and restore a degree of responsibility though, which means that eventually the scheme collapses under its own weight and the more forceful correction comes.

>>18370985
This has never happened before in all of human history we really dont know what will happen.
Money has always been made up. Maybe its just time we stop pretending that it hasnt been.