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A comment on Inequality, Interest Rates, Aging, and the Role of Central Banks. Parent comment

Re:Inequality, Interest Rates, Aging, and the Role of Centra... by dragonwriter on Friday December 30, 2022 @12:34AM (#34182157)
> They still issued USD, which was the only legal currency.

As I recall, they issued the paper version of stablecoins: they were denominated in units of US dollars, but they weren’t government money, and they traded at floating values, typically (aside from many other factors influencing value) declining in value with distance from the issuing bank.

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Re:Inequality, Interest Rates, Aging, and the Role of Centra... by WalterBright on Friday December 30, 2022 @12:40AM (#34182191)
The discount on the notes was inevitably related to the probability that the issuing bank would honor the notes and redeem them with gold.

When the Fed lost all credibility with exchanging their banknotes for gold, we had the Great Depression. FDR then defaulted on the gold bonds, basically stealing from the good citizens who had trusted the government.

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Re:Inequality, Interest Rates, Aging, and the Role of Centra... by JumpCrisscross on Friday December 30, 2022 @01:33PM (#34188201)
> When the Fed lost all credibility with exchanging their banknotes for gold, we had the Great Depression

This was not a cause of the Great Depression. (You are correct on the default, however.)

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