Money gets created in the USD economy all the time, whether by invented debt, cash printing, or the issuance of bonds. Does that money actually represent wealth? Does the USD economy actually contribute anything of value?
So let’s say you wanted to permanently remove value from the USD economy for some reason. What’s the most effective and impactful way to “burn money?” Not spend it. Not acquire it. Destroy it, with the goal of taking that value out of the economy.
Burning/ shredding physical cash seems really inefficient. Maybe the answer lies in devaluing real estate?
This is all hypothetical so assume whatever resources or labor you want.
That’s called taxes. That’s literally what taxes are, destruction of currency. Go pay your taxes to the treasury in cash, they will literally shred it.
Remove the peoples trust/value from it. Make societies (even small scale households/towns) around a currency-less system with things taken care of by each other using no money, just an agreement (it’s how communities used to work for thousands of years before capitalism, so it’s completely do-able). Or use a new money if you wanna start the failed capitalistic orphan grinder up again. Essentially starve the currency from trust/value to people and its value goes back to what it was, nothing. Money has no intrinsic value so if you make systems outside of that currency that stops people from requiring it, all the made up value goes back to zero.
devaluing the dollar, basically if countries stop trading to the USA, it will be like the ruble, pratically worthless if not for the yuan.
Taxes. The government can just print more money to pay for everything, but instead they tax to take that money out of the system
But taxes don’t take money out of the system. The government then spends that revenue in the budget.
Terrorism
(I’m obliged by lemmy.world rules to say “Please don’t actually do that”)
you’re not even correct, why would you take this risk
1: Invest in crypto 2: Invest in AI 3: Buy high, sell low
emp bombs in the right places
EMP bombs are not real
idgaf you corrected yourself, the fact you so arrogantly insisted in your ignorance in the first place earned you a block
Also research HERF guns. I suggested them for IEDs but the researcher I talked to said the military was far beyond that idea.
Create a new currency using USD as a base; stop printing USD, re-evaluate USD to be near worthless compared to new currency (1 USD : 100 N(ew)USD
Following this, implement either hyperinflation after USD is largely switched over, and it’ll destroy 99% of value, or you can stop printing right after, and NUSD will quickly devolve lower than it can even be represented, leading to inflating prices, and less use of NUSD in place of literally anything else, with no access of USD to even return to
Would the plot of Goldfinger help here? 🤔
What would happen if you nuked Fort Knox? Especially now that the dollar isn’t backed by gold?
‘Destroying’ money, either physically burning banknotes or just setting some numbers to a lower value in a digital ledger, does not remove value from the economy. When you create money, usually through debt, it takes its value from the currency that already exists. Money is also destroyed all the time through the payment of debt but not as fast as it’s created, that’s why its value mostly goes down (prices mostly go up): Money printer goes BRRRRRRRRR, money burner goes brrr.
What matters for an economy, and therefore the value of its currency, is the value they create–simply put, how much resources they exploit and how efficiently. The most important resource (in my opinion at least) is people.
So if you want to remove value from an economy you have to take those resources away, or make them hard or impossible to exploit efficiently by them, or make them obsolete…
What matters for an economy, and therefore the value of its currency, is the value they create–simply put, how much resources they exploit and how efficiently
Yeah, thats the way it ought to be, its actually slightly different, and is very important in the context of what a country does to undermine it’s own currency, or even a companies director does to the value of their company.
Value is a question of perception. How much are people/investors willing to tolerate and still perceive the value in a good or service or currency.
Its the reason the massive quantitative easing ended up spreading so widely as a tool in the last 15 years. In the beginning it was assumed that the massive ‘money printing’ would lead to massive devaluations, which didn’t really happen as expected. Thats because the reaction in value percieptions in those currencies ended being more flexible than central bankers and economists initially feared.
The perception of value played a role in how long it took for people in the US to recognise the real estate bubble exploding in 07-08. It plays a role in really any bubble, and is why prices drastically plummet instead of taper. The value perception changes en masse, and bang, everybody runs for the door.
One more interesting example is the value perception comparison of essential workers in the COVID19 Pandemic compared to normal times.
Give it to the KLF.
Removing currency isn’t the same as removing value.
The quickest way to remove currency is raising the reverse ratio.
Removing currency isn’t the same as removing value.
The quickest way to remove currency is raising the reverse ratio.
Create and then destroy some crypto currencies and their trading places.
