Quote:
Originally Posted by rubecube
Wouldn't the most sensible solution be to tie it to a % of GDP and then adjust whenever interest rates drastically change?
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that might work but it would be essentially a deficit hawk system, the time you need to open the coffers is when GDP drops massively, and the problem for all economists and political systems is what you need to worry about is perception, the moment the US dollar is percieved to be worthless it is worthless, the only thing that actually gives the dollar value is belief, interest rates are the same, if banks and other lenders sense the economy of the US is weak and they may not get their money back they will charge more to lend it, interest rates go up