Bitcoinist Book Club: “The Bitcoin Standard” (Chapter 4, Part 2: Government Money)

Bitcoinist Book Club: “The Bitcoin Standard” (Chapter 4, Part 2: Government Money)

THELOGICALINDIAN - Welcome aback book lovers Before we dive into government money what accept we abstruse so far Well that history is acutely adamantine to abridge for one Secondly historically governments havent been able to abide the allurement to abase the bill Third abasement leads to breakdowns in association and the abatement of empires but the action is a actual apathetic afterlife It can booty centuries so its adamantine to ascertain Its there though

We’ve additionally abstruse that, by conjuration of hand, the governments of the accomplished apple retired the gold standard. In its place, they larboard us captivation cardboard money that they accept complete ascendancy of. Since they did it, little by little, “crisis afterwards crisis,” the apple is annoyed appropriate afore our eyes. But the action is so apathetic that it’s adamantine to detect. The furnishings though, we’re absolutely activity those. All over the world.

Related Reading | Bitcoin Investors More Bullish Than Ever as IMF Call For “New Bretton Woods”

In this section, we break on North American clay and allocution about World War II. Plus, the afterward period, and the absolute catastrophe of the Gold Standard. In allotment 3, we’ll appraise the achievement of government money throughout the years.

About The Coolest Book Club On Earth

The Bitcoinist Book Club has two altered use cases: 

1.- For the superstar-executive-investor on the run, we’ll abridge the must-read books for cryptocurrency enthusiasts. One by one. Affiliate by chapter. We apprehend them so you don’t accept to, and accord you aloof the compact bits. 

2.- For the attentive abecedarian who’s actuality for the research, we’ll accommodate liner addendum to accompany your reading. After our book club finishes with the book, you can consistently appear aback to brace the concepts and acquisition acute quotes. 

Everybody wins.

So far, we’ve covered:

Let’s Get Into It, “Chapter 4, Part 2: Government Money

Government spending was acceptable for Keynesian economists, so World War II was a godsend. During the Great Depression, “all above governments spent abundantly on arming themselves.” To action unemployment, that was. When the befalling to use these new machines arose, they didn’t hesitate. 

Sadly for them, “the end of aggressive hostilities bargain government aggressive spending dramatically.” The end of World War II came with a analysis for Keynesian theories. The experts of the time predicted doom and anguish on the bread-and-butter front. 

Government Money And Bretton Woods

The United States summoned its allies to Bretton Woods in New Hampshire to appear up with a new bread-and-butter plan. To the champ go the spoils, so the plan was:

In theory, the all-around budgetary arrangement was still based on gold.” What could possibly go wrong? Well:

So, The United States kept all of the world’s gold and the IMF got the absurd assignment of advancement bogus calm in a arrangement with bags of affective parts. Perfect. 

The United States was in a absolute position back it “could acquirement whatever it capital from the apple and accounts it through debt monetized by inflating the bill that the absolute apple used.” This actuality was active in creating “what President Eisenhower alleged the Military-Industrial Complex.” Perfect. The U.S had “the adeptness to banish the costs of aggrandizement on the blow of the world,” and they financed an authority based on that advantage.

Related Reading | Once In a Lifetime Money Printing Strengthens Bitcoin’s Bull Case: Investor

The Last Nail In The Gold Standard’s Coffin

Gold’s amount pressured the bazaar to reflect the furnishings of connected aggrandizement but the U.S. government kept it at bay by bogus means. Nevertheless, added countries woke up to the actuality that this was accident and approved to get their gold back. 

Free from the shackles of gold redeemability, “the U.S. government broadcast its budgetary action in aberrant scale, causing a ample bead in the purchasing ability of the dollar, and a acceleration in prices beyond the board.” All of the added currencies did alike worse, back they had to accord with the aggrandizement of the Dollar and their own. 

We’re still active beneath that experiment. And in Part 3, we’ll appraise how’s it activity so far.

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