Re:Tether is starting to depeg from USD again
by neffy on Monday June 13, 2022 @08:57AM
(#31724883)
The gold standard didn't stop money creation.
The linkage in the banking system was to the price of gold, as fractional reserve lending slowly increased the amount of deposits in the system, the price of gold drifted up, and the amount of lending increased with it.
Then the entire system eventually broke apart (several times), because gold wasn't evenly distributed, and so the resulting rates of money creation drifted apart in different countries.
The linkage in the banking system was to the price of gold, as fractional reserve lending slowly increased the amount of deposits in the system, the price of gold drifted up, and the amount of lending increased with it.
Then the entire system eventually broke apart (several times), because gold wasn't evenly distributed, and so the resulting rates of money creation drifted apart in different countries.