Re:Central Bank Digital Currencies Are a Bad Idea
by voodootrucker on Sunday December 27, 2020 @12:58PM
(#25552830)
This [1] was in HN recently, and I honestly never understood the term "petro dollar" fully until I read it.
It does a pretty good job at explaining why the US can basically print money at will without facing inflation. Spoiler alert: people need to buy oil in dollars, but it cost us much of our domestic manufacturing base. I bring this up because the belief seems common at present that money is imaginary and that we've made so much of it without causing inflation is proof of this fact, but (as per the article) it's like a balloon as when you squeeze it, the air has got to go somewhere.
It does a pretty good job at explaining why the US can basically print money at will without facing inflation. Spoiler alert: people need to buy oil in dollars, but it cost us much of our domestic manufacturing base. I bring this up because the belief seems common at present that money is imaginary and that we've made so much of it without causing inflation is proof of this fact, but (as per the article) it's like a balloon as when you squeeze it, the air has got to go somewhere.
[1] https://www.lynalden.com/fraying-petrodollar-system/