Post
Topic
Board Economics
Re: Maybe Not Possible For Governments To Get Off Fiat??
by
Mauser
on 17/04/2023, 14:36:26 UTC

Would this be a case of intimidation from more dominate countries that is preventing other governments from wanting to change the financial system?

Thoughts?


Yes I think that there would be a lot of consequences and intimidation for countries to try and stop using fiat money. There are two types of countries in the world, net export and net important country. Which basically means that some countries consume more than they produce and others that produce more than they consume. USA is a good example for a country that imports more, which gives them a lot of power. In the past most of that International trade was settled in USD and if one of the trading partners would move away from USD now, then the USA could try and switch to a different country for it's imports. Most products are not only offered by one country and if your economy relies heavily on its export to function, then you are dependent on the big countries. That's why I don't expect we are going to see any of the big countries to switch out of the fiat system anytime soon.