Gresham's Law Explained

#gresham'slaw #goodmoney #badmoney

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[swathimadavarapu]

Explanation is good but the background music is noisy

[Highst]

Great video, I agree with every word. But your final point (4:56) remains unexplored. The dollar is entirely a fiat currency now, and would not fit the description of “good money” were it not for the use of Gresham’s law to enforce monetary imperialism over a century. Observe it’s pernicious use in the Philippines in 1903-1906 as the US used debased silver coins to push out the market rate Mexican silver coins. This allowed US banks to expand their domestic credit without fearing the flight of gold that inflation induced. This experiment was successful in nearly all of the third world silver countries (especially Central America), allowing the US to embrace expansionist monetary policies for long enough to eventually empower the government to centralize the monetary system and create an entirely fiat currency we know and use today. Gresham’s law was the bane of government monetary meddling until they paid economists to work for them and teach them how to use it to establish monetary colonialism.

[scootermcgooginhime]

As Thomas greshams great great great great great great great great great grandson probably I Thomas gresham approve this message

[fowchiiiliedpuppiesdied]

It’s only an issue when your economy is crap. So it’s an issue for the entire world, at the moment.

[alexisstoned]

"Good money as US dollar and Euro" :)

[richardandrews]

aaand... people started hoarding bitcoin

[Notrocketscience]

I think Gresham‘s law is a pile of stinking do! If I had a small pile of gold that was worth exactly $100 I would transact in the currency instead of the gold that because I think the gold is going to go up in value but because the Gold is illiquid. Because it’s transacted less commonly fewer people are going to exchange gold for notes with me and if they do they’re going to be suspect of the purity of the gold.