Money gets created in the USD economy all the time, whether by invented debt, cash printing, or the issuance of bonds. Does that money actually represent wealth? Does the USD economy actually contribute anything of value?
So let’s say you wanted to permanently remove value from the USD economy for some reason. What’s the most effective and impactful way to “burn money?” Not spend it. Not acquire it. Destroy it, with the goal of taking that value out of the economy.
Burning/ shredding physical cash seems really inefficient. Maybe the answer lies in devaluing real estate?
This is all hypothetical so assume whatever resources or labor you want.
That’s called taxes. That’s literally what taxes are, destruction of currency. Go pay your taxes to the treasury in cash, they will literally shred it.
Create a virus that only targets dollars.
Inflation. Make the currency worthless.
Destroying money would make it more valuable.
Yeah this is kind of the opposite
That would be deflation - which is its own problem
Remove the peoples trust/value from it. Make societies (even small scale households/towns) around a currency-less system with things taken care of by each other using no money, just an agreement (it’s how communities used to work for thousands of years before capitalism, so it’s completely do-able). Or use a new money if you wanna start the failed capitalistic orphan grinder up again. Essentially starve the currency from trust/value to people and its value goes back to what it was, nothing. Money has no intrinsic value so if you make systems outside of that currency that stops people from requiring it, all the made up value goes back to zero.
If you want to know how to reduce the value of the dollar as a currency, you may want to look at what Trump has been doing since he entered Office.
Otherwise, I’m not sure to understand the question.
Dollar value is still not go down tho.
Check the 6 month graph:
https://www.marketwatch.com/investing/index/dxyConsequences will happen eventually.
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Taxes. The government can just print more money to pay for everything, but instead they tax to take that money out of the system
But taxes don’t take money out of the system. The government then spends that revenue in the budget.
‘Destroying’ money, either physically burning banknotes or just setting some numbers to a lower value in a digital ledger, does not remove value from the economy. When you create money, usually through debt, it takes its value from the currency that already exists. Money is also destroyed all the time through the payment of debt but not as fast as it’s created, that’s why its value mostly goes down (prices mostly go up): Money printer goes BRRRRRRRRR, money burner goes brrr.
What matters for an economy, and therefore the value of its currency, is the value they create–simply put, how much resources they exploit and how efficiently. The most important resource (in my opinion at least) is people.
So if you want to remove value from an economy you have to take those resources away, or make them hard or impossible to exploit efficiently by them, or make them obsolete…
What matters for an economy, and therefore the value of its currency, is the value they create–simply put, how much resources they exploit and how efficiently
Yeah, thats the way it ought to be, its actually slightly different, and is very important in the context of what a country does to undermine it’s own currency, or even a companies director does to the value of their company.
Value is a question of perception. How much are people/investors willing to tolerate and still perceive the value in a good or service or currency.
Its the reason the massive quantitative easing ended up spreading so widely as a tool in the last 15 years. In the beginning it was assumed that the massive ‘money printing’ would lead to massive devaluations, which didn’t really happen as expected. Thats because the reaction in value percieptions in those currencies ended being more flexible than central bankers and economists initially feared.
The perception of value played a role in how long it took for people in the US to recognise the real estate bubble exploding in 07-08. It plays a role in really any bubble, and is why prices drastically plummet instead of taper. The value perception changes en masse, and bang, everybody runs for the door.
One more interesting example is the value perception comparison of essential workers in the COVID19 Pandemic compared to normal times.
Removing currency isn’t the same as removing value.
The quickest way to remove currency is raising the reverse ratio.
emp bombs in the right places
EMP bombs are not realI was wrong, EMP bombs are real
Also research HERF guns. I suggested them for IEDs but the researcher I talked to said the military was far beyond that idea.
idgaf you corrected yourself, the fact you so arrogantly insisted in your ignorance in the first place earned you a block
Before I answer,how much research have you done into the creation of the federal reserve, the mechanisms it uses, and the outcomes it seeks to achieve?
Just want to know what level of baseline knowledge this conversation should assume
devaluing the dollar, basically if countries stop trading to the USA, it will be like the ruble, pratically worthless if not for the yuan.
Would the plot of Goldfinger help here? 🤔
What would happen if you nuked Fort Knox? Especially now that the dollar isn’t backed by gold?
1: Invest in crypto 2: Invest in AI 3: Buy high, sell low
Become President and do exactly what Trump is doing.
