Balance of trade from the nation's production of goods and...

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24/12/17

15:49

Post #: 29861375
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Originally posted by skypiliot ↑

1. more like printing dollars and inflating away individuals worth.
2. not quite it is dependent on how much we export in comparison to how much we import In the mining boom it rose now it is doing less well. The exports and imports are measured in USD which is the worlds reserve currency. The value of the USD is held up by being the worlds reserve currency.If it was not the worlds currency given its debt level it would be down with the Zimbabwee currency. Already some countries such as China and Russia are moving away from depending on the USD . At first this looks like sour grapes from the cold war but it could be quite a wise move to get away before the collapse of the USD and contagion into other fiat currencies . Meantime Scott Morrison is asleep at the wheel.
This problem with the USD brings one back again to the definition of Bitcoin

It is a insurance against the collapse of fiat currency.

Everything flows from that because it is an insurance against the collapse of fiat currencies it has certain attributes
1. it is a store of value
2. It has transferrable abilities

While I of course acknowledge that literally tens of thousands of people have poured money into bit coin in recent weeks . If they are doing so because they are chasing a speculative gain rather than insuring themselves against fiat collapse they have missed the point .
Will it work as an insurance against worldwide fiat collapse only a testing in a worldwide collapse will give the answer . Indications from the collapse of individual countries such as Zimbabwee and Venezuala would suggest so.

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Balance of trade from the nation's production of goods and services is all nested within the productive capacity of the nation.

The US Dollar is the world reserve currency because the USA has the largest economy with the most powerful military. Same goes for former world reserve currencies. The hyperinflation of the Zimbabwe currency was due to the Robert Mugabe regime destroying the productive capacity of their nation. Same with Venezuela.

I will not comment on our Treasurer because I am not here to discuss politics.

Bitcoin is not a store of value because it isn't back by anything. As I said before, the AUD is guaranteed by our government and supported by our nation's productive capacity.

"Utopia is for the next life" (Milton Friedman)
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