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   augustus pugin 🌖 (augustus@shitposter.club)'s status on Sunday, 28-May-2023 07:17:34 JST augustus pugin 🌖
   Hume's price–specie flow mechanism seems like bullshit to me
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     augustus pugin 🌖 (augustus@shitposter.club)'s status on Sunday, 28-May-2023 07:19:30 JST augustus pugin 🌖

     in reply to
     it sort of applies in the Opium Wars because China was hoarding all the silver, and the only way it could be reduced was breaking in and dumping opium in exchange for it, but it's not like they wanted to do that. they would've happily hoarded it all if they could have.
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     augustus pugin 🌖 (augustus@shitposter.club)'s status on Sunday, 28-May-2023 07:21:53 JST augustus pugin 🌖

     in reply to
     People seem to admit here that it doesn't really work, but it's a nice theoretical idea.
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     Shaun Hale (shaunh@pleroma.nobodyhasthe.biz)'s status on Sunday, 28-May-2023 07:32:52 JST Shaun Hale

     in reply to
     @augustus The concept of a trans-national money, whether fiat or crypto or gold, sounds nice on paper but always causes more trouble than benefits.
     
     If I'm in the US and I want to trade with China I should buy stuff with dollars here, ship it over to China and sell it for yuan, then use those yuan to buy stuff in China and ship it back here to sell for dollars.
     
     All global trade could be performed in this fashion without any need for an international reserve currency of any kind, but of course that would force forex traders to stop gambling with the world economy and get real jobs instead which would basically be another shoah.
     augustus pugin 🌖 likes this.
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     御園はくい (hakui@tuusin.misono-ya.info)'s status on Sunday, 28-May-2023 15:56:55 JST 御園はくい

     in reply to
     @augustus it's a trade balance issue, same as today where china and vietnam makes everything and the west is reduced to "services"
     if the world wasn't on fiat the west would have ran out of money even faster
     augustus pugin 🌖 likes this.
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     御園はくい (hakui@tuusin.misono-ya.info)'s status on Sunday, 28-May-2023 15:57:18 JST 御園はくい

     in reply to

     • Shaun Hale
     @shaunh @augustus >If I'm in the US and I want to trade with China I should buy stuff with dollars here
     but what if you have nothing that the chinese really wants at a volume equal with what you're importing
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     augustus pugin 🌖 (augustus@shitposter.club)'s status on Sunday, 28-May-2023 15:57:18 JST augustus pugin 🌖

     in reply to

     • 御園はくい
     • Shaun Hale
     @hakui @shaunh then smuggle opium into that bitch like my boy Palmerston
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     on-lain ✔ᵛᵉʳᶦᶠᶦᵉᵈ (lain@lain.com)'s status on Sunday, 28-May-2023 18:34:30 JST on-lain ✔ᵛᵉʳᶦᶠᶦᵉᵈ

     in reply to
     @augustus I think the point of specie-flow-mechanism is that it is a natural fail-safe mechanism in the gold standard, so even if the banks and speculators did nothing to bring the real world gold/currency exchange rate back to the peg, the act of physically moving the gold around would. Of course that is expensive, so people rather used different mechanisms, like short selling, to quickly restore the peg. But that doesn't mean that the specie-flow mechanism doesn't work, it's still the ultimate cause for the other mechanisms were preferred in real life.
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     on-lain ✔ᵛᵉʳᶦᶠᶦᵉᵈ (lain@lain.com)'s status on Sunday, 28-May-2023 18:37:39 JST on-lain ✔ᵛᵉʳᶦᶠᶦᵉᵈ

     in reply to

     • Shaun Hale
     @shaunh @augustus I don't think there's anything special about US/China that makes it important to have a different currency. Why should Minnesota and Iowa have the same currency? Or for that matter, Walmart and Amazon?
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     SlicerDicer (slicerdicer@bikeshed.party)'s status on Sunday, 28-May-2023 18:58:56 JST SlicerDicer

     in reply to

     • on-lain ✔ᵛᵉʳᶦᶠᶦᵉᵈ
     • Shaun Hale
     @lain @shaunh Facts.
     
     The learning lesson on this is Early Texas. How the economy did with the various failures they attempted. It was only when they got USD it stopped being the patriots state of failure. Remember they remember their failures as their achievements. That’s Texas. Proud of you! Not proud of being born there.
     on-lain ✔ᵛᵉʳᶦᶠᶦᵉᵈ likes this.