Shaun, won't the CBDC be inflationary if they bring that in? They really will be printing money with that thing.
God knows how all of it will fit together, that's why they complicate finance I think, so the plebs can never work out what is going on.
Quoting: Anonymous Coward 27733035 If you read the fed's white paper, the digital dollar will be the dollar in name only, and actually have zero relationship to our current monetary system, save for the fact that in the very beginning there will be interoperability (i.e. the digital dollar will effectively operate as a stablecoin pegged to the USD, at least in the very beginning phase).
The digital dollar will basically be a token that has no intrinsic value outside of the fed's own little ecosystem. I've been comparing the fed's plan to a nation-wide company town, making the digital dollar tantamount to a "coal scrip," which was currency issued by company towns that could be used at the company's own general store only.
It won't meet some of the basic definitions of currency, or any of them really. For example, it won't be a store of value, since it will come with an expiration date and limitations. It would be better defined as a coupon because its planned limitations are way too narrow to meet any definition of currency.
As for whether it's inflationary or deflationary, you can't even really talk about it in that context because it's not money to begin with. If there were a surplus of some commodity within the fed's system, leading to deflation, the fed could simply fix the price. If there were shortages (which is probably going to be par for the course under that system), they can control how much of that thing people are able to buy.
I personally think it's highly likely that the digital dollar will be used to replace the dollar in lieu of hyperinflation. I think what people will find, though, is that the digital dollar doesn't buy much, especially outside the fed's system. Like if you wanted to buy a fine watch from Switzerland, for example, I think what we'll find is that the digital dollar is worth about as much as Chuckecheese tokens outside of their little sphere of influence. So while you might not see the digital dollar hyperinflate here locally, I think there will be some hyperinflationary features as far as its value in a broader context.
