shopify analytics tool

NeoNotes — reserve currency

As far as the world's reserve currency, as a whole that's a bad idea. I doubt that Trump sees that, but competition is good. This is one instance where he is doing the right thing by accident.



Yes, Trump is contributing to the debt, but so has every national politico since the "reform" of 1974. The continuing resolutions instead of actual budgets and the exploding bureaucracy are creating greater problems than Trump did. Both also predate Trump's election.

Meanwhile, that has nothing to do with the (BAD) idea of a single reserve currency or fractional banking. Both of which by their very existence distort the free market and introduce instability. But that is another topic or six.



The aging population is a problem because a) government promised that it could provide better, more reliable retirement income than the private sector, b) government mandated contributions, thereby reinforcing the idea that Government Knew Best when it came to retirement and driving out many private sector alternatives, c) government mismanaged the funds it collected, and finally the REALLY Big One, government borrowed against those funds without payback.

A good smartphone can get up to the minute currency exchange information, along with futures markets, stock markets, index funds, and football pools. Understand this, the only "practical" reason for a single reserve currency is so the government producing the currency can control the economy.

None of which has anything to do with the Korean negotiations of the impact of Chinese trading.

ETA: I should warn you, some libertarians spend a lot of time studying economics.



When people are told that they will be taken care of because it is their right, they stop paying attention to the numbers. That's true with pensions, Social Security, health care, public schools, roads, the post office, and clean water. I call it Somebody Else's Problem after a fictional FTL drive introduced by the late Douglas Adams. On the other hand, if they have to take responsibility, they pay closer attention. Just as one example, why should there be a mandatory retirement age? Just as interesting now that you brought it up, the current interest on savings accounts is artificially low because of government currency manipulation. It doesn't even beat the rate of inflation. Basically if you put money in a bank, you're losing money.

I'm not saying that the U.S. didn't benefit when the dollar was unquestionably the single reserve currency. That tends to happen with monopolies. I'm saying that competition and the free market can do better, with less government control and more choice and more benefits for people.
NeoNotes are the selected comments that I made on other boards, in email, or in response to articles where I could not respond directly.

blog comments powered by Disqus
2018       2017       2016       2015       2014       2011       2010       2009       2008       2007       2006       2005