Exactly. That's really the point of this video, is to stress that idea. We don't often think about the externalities involved when we choose to imbue a currency with the value of our labor, but those externalities are very real. In the case of Federal Reserve Notes, we're funding perpetual war simply by accepting their dollars as payment for our valuable work.
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The interesting question is this: do we subsidize the FED when using Steem Dollar?
I guess not. We take the benefit of a ubiquitous currency but skip the evil subsidizing bit - am I right?
Right, because demand for SD does not increase demand for FRNs. If anything, demand for SD decreases demand for FRNs. An SD is a dollar worth of debt from the holders of Steem Power. A FRN is a dollar worth of debt from US income taxpayers.