this post was submitted on 30 Nov 2024
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[–] HK65@sopuli.xyz 8 points 3 weeks ago (1 children)

Sounds like you want the gold standard back.

[–] TheDemonBuer@lemmy.world 3 points 3 weeks ago (1 children)
[–] HK65@sopuli.xyz 10 points 3 weeks ago (1 children)

What is the difference between the gold standard and a neutral reserve currency?

[–] dejected_warp_core@lemmy.world 0 points 2 weeks ago (1 children)

A hypothetical neutral reserve currency would be a fiat-style monetary system. It would also require some kind of central bank and governance over it. It's not impossible to achieve, but the politics around such a thing would be impressive to behold.

Also, I doubt the US would embrace either before seeing the dollar crash. It would take too much power away from the Federal Reserve, and by extension, global leverage.

[–] HK65@sopuli.xyz 2 points 2 weeks ago

The reason for fiat was to take the power of setting global monetary policy from people who had gold mines and give it to people who had big economies. At that time, it was the US because they didn't fight WWII on their own soil, which was unique at the time.

Realistically, if the dollar crashes, it is in nobody's interest to go to anything than the next biggest currency, likely the Euro. Except for the US of course, but what are they going to do about it? Start wars?

They will definitely do that.