Does the World Need Trillions of Currency Units?
The structure of the global economy today is sick, just like a terminally ill cancer patient. It can be difficult for some people to really understand why this is true unless they’ve spent a significant amount of time studying economic history, the economic data within many economies, and the geopolitical events that have shaped our global economy today. (The Gini book and Gini Book List is a good place to start.)
When people don’t understand economic history and the unsustainable nature of our global economy today, they may ask: “Why doesn’t Gini have trillions of currency units like some other major fiat currencies?”
The Gini/USD exchange rate is currently 1:1, but the value that each unit of currency has in any given market is not dependent on its exchange ratio with any other currency or commodity. The USD’s value (and the value of virtually all other fiat currencies) has been drastically eroded by inflation over the past 100 years. This is why newspapers cost 5 cents 100 years ago, a good pair of shoes was a few dollars, etc. All those items are orders of magnitude more expensive today because of monetary inflation, not real value increases.
The money supply in the fiat world doesn’t need to be trillions of units. The only reason it is that high today is because short-sighted politicians have debased all their currencies for political reasons, which has destroyed the purchasing power of their citizens. The Gini currency is designed to avoid that.
- Fiat Currency Graveyard: A History of Monetary Folly
- Is Gini a Deflationary Currency?
- How Should Money Flow Through an Economy?
- Eanfar’s Law of Money-Value Creation
- Many other Gini Monetary Policy articles
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