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PaperclipPerfector  2yr ago (text post)   26182 thread views

Culture War Roundup for the week of December 25, 2023

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How much of an option is it really? Unless the US federal government decides to accept Texas' new currency everyone in Texas is going to have some expenses (federal taxes) they'll need to pay in USD. Seems like a significant effect of the currency would be exposing Texas merchants to forex/commodity market volatility they probably don't want to be exposed to.

Can they not buy USD from other people? Or setup a Eurodollar?

Honestly I actually doubt that a gold backed currency would be much more volatile than a fiat one in a context of constant generalized inflation. Not in real terms anyhow.

They can (indeed must) buy USD from others but what others will sell to them? Texas will still be part of the United States and so USD will still be legal tender. If you have USD you can transact anywhere in the United States, Texas included. If you have TexasBucks you can probably only transact in Texas. Why use the TexasBucks instead of USD? Why would I want to sell my USD for TexasBucks, except maybe for speculative purposes?

Well yes, this would probably just be shiny shiny bitcoins. If there was a government that could issue a stable currency within the constraints set by the U.S. constitution on state level currencies, it’d be Texas or Utah, albeit it’s unclear what the benefit of having one is(potentially enabling low interest rate loans within state?).

Why use the TexasBucks instead of USD?

The gold backing is the sole reason to use TexasBucks in a world where USD exists. And I won't do the goldbug schtick of explaining why you would want to use a deflationary currency, the words have been said enough.

Most likely this will end up being a shitty gold instrument nobody uses and a political stunt. But in these times of economic turmoil, you never know.

If they don\t bungle the implementation I might buy some TexasBucks. Hell, I might even open a busines that accepts TexasBucks in exchange for bullets, cigars and whiskey. Hell, maybe they should do away with the whole gold thing and just transact in bullets directly. Add that extra meaning to buckshot.

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