I hear a lot of folks here saying the value of fiat is fake. But “the good faith and credit” of the US is the same (more, actually) as what a celebrity does to earn fame. Yet people dis the Fed, which is a huge part of our financial stability. And I’m always shocked at the people who are OK with the US going into default over a political squabble.
Discussion
I have no card on US politics, I am an EU citizen. A default of US or a any collapse of the usd or any other currency is bad for the lives of many. The problem is that the faith and credit of the issuers, Fed, ECB etc is broken due to bad decisions and/or corruption namely by debasing the currency because they can. Also the current model of constant inflation is broken like Jeff Booth explains. This is what bitcoin fixes. It changes the economic model and removes the need to thrust the issuer.
Inflation is a relatively new thing in the US and caused by fate playing the wildcard of a global pandemic. It will pass.
(And yes I’m old enough to remember the inflation in the ‘70s. I’m talking more recent history.)
Inflation is a constant part of the system. The target each year is 2% and that is the official data, which in real terms is usually higher. So over the years, and with banks not paying interest on deposits people lose the ability to save over long term. So they have to invest to keep up. This is only the beginning, US and Europe will become increasingly unstable and with sticky inflation and higher inflation spikes cycles. US and EU will have the same problems as other nations, like Argentina, they are just lagging in years. Inflation is here to stay, how do you think the major debt to gdp will be paid? They will print their way out. Check Jeff Booth recent interview in "What bitcoin did" podcast on YouTube to understand how the system is unsustainable.
That's a hilariously ignorant point of view!
Interesting word salad