Central Bank Digital Currency to End Inflation

[Ragnar Celine]

No contradiction.
People won't hold this "digital currency", how will it protect them from inflation?

OK, once more for the ones who weren't paying attention earlier:

By automatically adjusting payments using a Daily consumer price index.

Payments are indexed to the general price level in terms of the daily index so changes in the inflation rate have no effect on the value of the payments.

Items denominated in daily indexed units have no inflation risk since their real value stays constant over time.

Basically, when prices go up, the amount you pay or get paid automatically goes up to match the price level so you can still buy the same amount of stuff you could before.

They do this in Chile and it works or they would have stopped doing it a long time ago.

 

[Toddsterpatriot]

OK, once more for the ones who weren't paying attention earlier:

By automatically adjusting payments using a Daily consumer price index.

Payments are indexed to the general price level in terms of the daily index so changes in the inflation rate have no effect on the value of the payments.

Items denominated in daily indexed units have no inflation risk since their real value stays constant over time.

Basically, when prices go up, the amount you pay or get paid automatically goes up to match the price level so you can still buy the same amount of stuff you could before.

They do this in Chile and it works or they would have stopped doing it a long time ago.

By automatically adjusting payments using a Daily consumer price index.

How is my pile of cash being "automatically adjusted"?

Items denominated in daily indexed units have no inflation risk since their real value stays constant over time.

The government has no power, no ability, to keep prices constant.

Basically, when prices go up, the amount you pay or get paid automatically goes up to match the price level

The government is going to force my employer to hike my wages when prices go up?
When did the Constitution give them that power?

They do this in Chile and it works or they would have stopped doing it a long time ago.

The UF moves with inflation, but it doesn't circulate. Seems like you're confused.

 

[The Irish Ram]

Seems it depends on your particular circumstances. High income people are less financially vulnerable and have less reason to fear a bad social credit score than do low income people.

If your attitude is already aligned with those controlling the social credit system, or you can fake like it is, you'll probably be ok too.

We also have a very competitive society and many would benefit by others being taken down a peg or two by a bad social score.

Others would just enjoy the fun of turning their everyday activity into a kind of casino game.

Until you go to pay for your groceries only to find out that the casino won the last 5 rounds, and you only have $3 in fedcoins left. Do you not know that the House always wins? Why allow them to gamble away your livelihood?

 

[Ragnar Celine]

By automatically adjusting payments using a Daily consumer price index.

How is my pile of cash being "automatically adjusted"?

Items denominated in daily indexed units have no inflation risk since their real value stays constant over time.

The government has no power, no ability, to keep prices constant.

Basically, when prices go up, the amount you pay or get paid automatically goes up to match the price level

The government is going to force my employer to hike my wages when prices go up?
When did the Constitution give them that power?

They do this in Chile and it works or they would have stopped doing it a long time ago.

The UF moves with inflation, but it doesn't circulate. Seems like you're confused.

I'm glad you've become so interested in this topic.

Lucky for me, it's not my job to teach monetary economics to everyone who is wrong on the internet.

I'm sure all your questions will be answered as your research continues.

 

[Dont Taz Me Bro]

If you can keep a good score then you'll have nothing to worry about.

"If you have nothing to hide, you have nothing to fear." - Joseph Goebbels

 

[Toddsterpatriot]

I'm glad you've become so interested in this topic.

Lucky for me, it's not my job to teach monetary economics to everyone who is wrong on the internet.

I'm sure all your questions will be answered as your research continues.

No need for me to further research an unworkable solution that never worked in the history of ever.

 

[Ragnar Celine]

Until you go to pay for your groceries only to find out that the casino won the last 5 rounds, and you only have $3 in fedcoins left. Do you not know that the House always wins? Why allow them to gamble away your livelihood?

Everyone knows the house always wins.

Strangely, casinos continue to exist.

Wall Street is just a fancy casino and people allow them to gamble away their livelihoods everyday.

 

[The Irish Ram]

You choose to play Wall Street Roulette, or not. The government has decided to take your paycheck and lose it FOR YOU. See the difference?

 

[Ragnar Celine]

You choose to play Wall Street Roulette, or not. The government has decided to take your paycheck and lose it FOR YOU. See the difference?

You're taking a really glass is half empty view of things. Look on the sunny side.

1. Maybe you'll win. You might be really good at playing the game.

2. Maybe they will take all that money and do something really cool with it like free universal healthcare or free college for everyone.

See?

Every cloud has a silver lining!

 

[The Irish Ram]

There is no such thing as free health care. There are no free colleges. There is them taking your paycheck to give to colleges, who hiked up their tuition sky high, and then expecting the students to pay it back, with interest.

Here is an example of the government helping themselves to the money in your pocket:
Our Gov. decided, for us, that they should take a chunk out of everybody's paycheck, to insure that when we got old, there would be a little nest egg for us to rely on. Then, they stole EVERY DIME.
Now they are stealing YOUR money to give it to the people they stole from earlier. While accusing the victims of theft of being spoiled and thinking they are entitled, and should go back to work if they want money for food. In the mean time before they give your money away to cover their theft, they take a chunk for themselves and tax the rest!

I am not spending my money, you are not spending your money. They are. And you want to put all of it in their hands to use at their discretion????? Ask Venezuelans how well that worked out for them. They (4th largest economy in the world) went from, "ok, giving the government all our money might work" to eating their pets to survive. Ask Hong Kong how going from freedom to dominance feels.
Being sunny doesn't mean lacking perspective. Listen to me and remember this bit of good advise:
IF THE GOVERNMENT SAYS, " GO NORTH", GO SOUTH.

 

[MarathonMike]

The question isn't if it is a good idea or not. The question is if enough people will believe it is a good idea. We all know how dumb the average voter is and by definition half of them are even dumber.

It would be the apex of stupidity to believe that handing total control of currency to the government would be good for the people. Power corrupts and absolute power corrupts absolutely.

 

[Ragnar Celine]

There is no such thing as free health care. There are no free colleges. There is them taking your paycheck to give to colleges, who hiked up their tuition sky high, and then expecting the students to pay it back, with interest.

Here is an example of the government helping themselves to the money in your pocket:
Our Gov. decided, for us, that they should take a chunk out of everybody's paycheck, to insure that when we got old, there would be a little nest egg for us to rely on. Then, they stole EVERY DIME.
Now they are stealing YOUR money to give it to the people they stole from earlier. While accusing the victims of theft of being spoiled and thinking they are entitled, and should go back to work if they want money for food. In the mean time before they give your money away to cover their theft, they take a chunk for themselves and tax the rest!

I am not spending my money, you are not spending your money. They are. And you want to put all of it in their hands to use at their discretion????? Ask Venezuelans how well that worked out for them. They (4th largest economy in the world) went from, "ok, giving the government all our money might work" to eating their pets to survive. Ask Hong Kong how going from freedom to dominance feels.
Being sunny doesn't mean lacking perspective. Listen to me and remember this bit of good advise:
IF THE GOVERNMENT SAYS, " GO NORTH", GO SOUTH.

They don't need to steal money because they have a technology called a printing press.

Whenever they need more money, they just push a little button and poof, out pops as much money as they wish.

 

[Ragnar Celine]

It would be the apex of stupidity to believe that handing total control of currency to the government would be good for the people. Power corrupts and absolute power corrupts absolutely.

Who ever said handing total control of currency to the government would be good for "the people"?

Handing them control of currency would be good for some people, not so good for others.

You can't please everyone.

 

[The Irish Ram]

They don't need to steal money because they have a technology called a printing press.

Whenever they need more money, they just push a little button and poof, out pops as much money as they wish.

OMG.
Can you tell me what happened to Germany when their government pushed the little button to fund their war?

 

[Ragnar Celine]

OMG.
Can you tell me what happened to Germany when their government pushed the little button to fund their war?

What was I talking about before? Inflation? Did I mention what they should do about Inflation?

Anyway, seems to me you should be thanking the government for taking your money because if they didn't there would be so much money sloshing around the economy that money would be worthless. By "stealing" your money the government controls Inflation.

It is only the government taking our money that gives the currency any value because you can only pay taxes with the government's own money. You can't pay your taxes to the US government in Yen or gold or corn. They only take the money they print themselves and that is what creates demand for US currency.

I could buy myself an intaglio press and start issuing my own currency with my own face printed on it. But if I can't make people pay me taxes with that money there would be no demand for it and so it would be worthless.

 

[Grumblenuts]

It is only the government taking our money that gives the currency any value because you can only pay taxes with the government's own money. You can't pay your taxes to the US government in Yen or gold or corn. They only take the money they print themselves and that is what creates demand for US currency.

Fun word game. My turn.

It is only toilets taking our poop that gives poop any value because one can only poop into a toilet. You can't just poop on the ground. One can't poop into a urinal. Toilets take all our poop and flush it away. And that is what creates demand for poop!

 

[JohnDB]

For those saying that digital currencies work in Chile.....

Chile Inflation Rate

Inflation Rate in Chile decreased to 3.90 percent in December from 4.80 percent in November of 2023. This page provides - Chile Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

tradingeconomics.com

The annual inflation rate in Chile eased to 13.7 percent in September of 2022, from 14.1 percent in the previous month, but still close to levels not seen in three decades​

 

[Ragnar Celine]

For those saying that digital currencies work in Chile.....

Chile Inflation Rate

Inflation Rate in Chile decreased to 3.90 percent in December from 4.80 percent in November of 2023. This page provides - Chile Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

tradingeconomics.com

The annual inflation rate in Chile eased to 13.7 percent in September of 2022, from 14.1 percent in the previous month, but still close to levels not seen in three decades​

You are missing the point. That is inflation on the Peso. Chile has two currencies the Peso and the Unidad de Fomento. The UF insulates people from the effects of inflation on the Peso because it is indexed to inflation so payments are adjusted to keep up with inflation.

 

[Ragnar Celine]

Fun word game. My turn.

It is only toilets taking our poop that gives poop any value because one can only poop into a toilet. You can't just poop on the ground. One can't poop into a urinal. Toilets take all our poop and flush it away. And that is what creates demand for poop!

Not sure your analogy works since not everyone is as fond of feces as you are.

 

[JohnDB]

You are missing the point. That is inflation on the Peso. Chile has two currencies the Peso and the Unidad de Fomento. The UF insulates people from the effects of inflation on the Peso because it is indexed to inflation so payments are adjusted to keep up with inflation.

Have you been to Chile?
Your digital currency might work on paper but it still isn't working for the average guy on the street who owns a vegetable cart.