I was having a debate with a friend. He said he doesn't see a way off of the FIAT banking system.
That if we goto a gold standard. That would limit the supply of money.
And that would hurt us.
What are your thoughts on this?
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If you limit the supply of legal tender....
And someone hoards all their money and doesn't spend it....
Then over time the value of the dollar goes up for everyone else.
The wealthy would be incentive-ized to save money, and not spend it -- that is, until they want to purchase something big with their vast buying power. The value wouldn't adjust fast enough and they would have too much buying power and can manipulate the market, therefore screwing over everyone else in one fell swoop.
So that's bad...
That is unless you install a negative interest on hoarded monies, which Trump suggested when he was President.
https://www.google.com/search?q=Trump+negative+interest&oq=Trump+negative+interest&aqs=chrome..69i57.2783j0j9&sourceid=chrome&ie=UTF-8
Doing that would mean the wealthy would have more incentive to invest in start-ups and liquid assets rather than sit on money in the bank while it rots to negative interest.
If you do A (lock in the quantity of a currency in the system) without doing B (install negative interest rates for those hoarding) then your friend is correct, it doesn't work.
But negative interest rates are easy to implement and the draw-backs/loopholes are far fewer than the system we have now.