{"id":61715,"date":"2022-01-31T10:54:54","date_gmt":"2022-01-31T15:54:54","guid":{"rendered":"https:\/\/olduvai.ca\/?p=61715"},"modified":"2022-01-31T10:55:28","modified_gmt":"2022-01-31T15:55:28","slug":"61715","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=61715","title":{"rendered":"Response: Money and Payments: The US Dollar in the Age of Digital Transformation"},"content":{"rendered":"
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Response: Money and Payments: The US Dollar in the Age of Digital Transformation<\/a><\/h2>\n<\/div>\n
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Implications from the Federal Reserve\u2019s Paper<\/strong><\/p>\n

Our first comment is that every monetary change from the Founding of America through present has been to move away from free markets, and to adulterate our currency. An analogy could be made to the Ship of Theseus, with each good plank replaced with an unsound board. A\u00a0Zombie Ship of Theseus<\/a>, decaying, but still afloat.<\/p>\n

Let\u2019s walk through the Fed\u2019s paper. The very firstparagraphon page 1 says, \u201cThe Federal Reserve, as the nation\u2019s central bank, works to maintain the public\u2019s confidence by fostering monetary stability, financial stability\u2026\u201d<\/p>\n

Monetary stability<\/em>is defined as2% debasement per annum<\/a>, an Orwellian twist. Andfinancial stability<\/em>in the Fed\u2019s regime is a myth.Interest rates shot the moon between 1947 and 1981, and since then have been falling\u2014with volatility\u2014into the black hole of zero.Meanwhile debt grows exponentially, and the\u00a0marginal productivity of debt<\/a>\u2014how much GDP is added for each new dollar of debt\u2014falls decade after decade. It is not only unstable, but unsustainable, heading towards an ultimate\u00a0heat death of the economic universe<\/a>.<\/p>\n

\"\"<\/p>\n

\u201cCBDC is defined as a digital liability of a central bank that is widely available to the general public.\u201d In other words, it\u2019s like holding a paper dollar bill except it\u2019s digital. Which implies several things:<\/p>\n