This is all theory and every theory is just speculation.
So, a price mismatch or a price change is how scalpers, peddlers, and merchants make their money, their bones.
Their job, when not perverted by market manipulation, is basically taking the supply to the demand. Or somehow selling the demand, and then finding a way to supply it. In some business circles, this is called ‘fulfillment’ and ‘delivery’, for ‘deliverables’.
Finding a price mismatch and shaving off some alpha to pocket for yourself. A Keeper’s or finder’s fee. Delivering goods and services.
That’s the goal.
But if we eliminate price mismatch, then there’s no need for this kind of trade per se. There will still be trade, but it’ll be different. It’s sort of the issue with price fixing grains or subsidizing things. When like items become near the same value as like-kind items.
If the value of a specific item was set in stone, then no one would trade that item for that item itself unless they needed that item to survive or practically use. Like gasoline or food or living spaces.
For instance, the US Dollar. No one wants the US Dollar to have specifically the US Dollar. They get money because of what money can buy. Having money to have money itself only matters if you’re dealing in untaxable events and trying to do things under the table, whether it be drugs or mowing the lawn (The practical use of cash money is to avoid taxes, as it turns out).
So fixing the price to be stable or set on a good or service turns a commodity into a form of a stable currency that doesn’t add speculation. Because for as long as the price doesn’t change, or is not volatile, then people won’t speculatively trade it. No one is opening an Options chain latter speculating the US dollar. There’s not enough volatility to make money. (don’t get me wrong, there are Forex swaps and CFDs).
For instance, in a CBDC world, if the price of soap is set at a fixed value of $10 (measured in digital dollars), then no one would buy soap for more than $10. And if there are market mechanics like Digital CBDC that prevents the selling or buying of soap for less than $10, then the price of soap is itself equivalent to the value of an Alexander Hamilton, or $10. Thus one could store soap to use as an exchange equivalent for $10. Barter for soap worth $10.
And then you got drug dealers using soap to make trades as a sort of stamp or coupon for drugs skirting the use of CBDCs. Lmao.
Just like my article with LEGO’s being the Gold Standard for Drugs.
But what about people using soap for soap?
Well those people are retarded.
If you could sell soap for only $10, then you should reasonably find an alternative for that soap for less. You’d have to be brain dead to want to use something fixed price for it’s intended purpose, unless you’re really that desperate. So if you could trade a bar of soap for a pound of powdered soap that lasts longer, then logically you would use the alternative and save the bar soap.
You could go to prisons, and they smoke their cigs and eat their ramen. But the thing about those commodities traded as currency is that they’re not fixed value. So CBDC’s being able to fix the price of shit, where there are access to alternatives, makes the price of shit become the new standard. If your cup noodles traded at a fix value, you’d eat something else that’s cheaper, duh. Only if you’re really fiendin’ for a specific thing would you use it. Or if you like being dumb, I mean, people burn literal cash money for jokes, so yea.
Generally speaking, a fixed priced good won’t be used as the good itself, and people will find alternatives. Unless they are fiends or retarded.
Some cases where this wouldn’t be the case would be with gasoline or other things that are ‘necessities’ without alternatives. But you fix the prices on gas and there will eventually be alternatives.
Price fixing;
Many governments try to make things affordable, such as requiring grains to only be sold to the Government, and can only be bought from the Government. Yet where ever there is a law with a reason, comes people with the ability and desire to perform illegal stuff for money. So illegal prices that undercut Governments, will naturally ensue. Now you have illegal grain where people have choices between starving or buying slightly cheaper food.
But what happens if there is a shitty season and the grain yields are shit?
In some cases, the government takes over the farms and then drives things to shit.
What happens if there’s too much demand for Grains and the Government can’t provide or meet the demands?
Then people starve and become unrestful resulting in riots and turmoil.
When the price of a good or service is fixed and the Government becomes the monopoly, then there isn’t a free trade or fair value. It’s whatever the Government says is the value and whomever the government says can trade it. And if we had a Federal Reserve and Federal Government assign values on things from their offices in Alexandria, then we’d be fucked.
The Price of grains in California, or Texas, or Alaska, would be set and effected by people FAR DISCONNECTED AND REMOVED from their states. This would yield a lot of pain. It’s definitely not a perk of globalization unless you wanted to fuck up another country remotely, like with trade sanctions.
This is the threat of Instantaneous Velocity of Money set by policy from a Plutocracy.
You think the people in DC actually care about your shitty used car in Texas or Invasion of Immigrants to California or Homeless population in Dakota? They don’t care. They’re disconnected. It’s a non-issue for them. Out of sight, out of mind.
And because they’re disconnected, then their decisions on economic and fiscal policy would yield great pain to the people that are affected, especially the ones remote and effectively disconnected. To people they don’t know, don’t see, and don’t consider. If they don’t know you exist, you might as well not be human to their eyes.
So,
The amount of economic pain and impact from a CBDC is varied. I used Soap as one example, and there are plenty of other household goods that could be affected by reinventing our currency systems.
For instance, egg prices recently have been high as fuck for reasons. Now there is a change in value, and now people are finding a way to deliver value to win some of that price mismatch. Egg buyers are trying to find cheaper sources of eggs. Egg Scalpers are trying to buy cheaper eggs to sell at a higher competitive value factoring in convenience.
All of this creates a market, and I’m talking about Eggs here. Literal eggs. The things around you, from pens to your phone are all hinged and interconnected on the Capital markets with possibly some degenerate company selling their name brand IPO’d on the stock market.
So, if we have a CBDC, the value of goods and services could be fixed. To be manipulated by the CBDC policies.
On one hand you could make housing prices fixed and stable, allowing people to affordably buy homes detached from neighborhood valuation or other factors.
On the other hand, this eliminates a market for people to want to buy shitty homes, fix em up, and flip em. Thus meaning that subsidized housing may essentially fall into disrepair and dismay or ruin. Separating it’s actual value from that of the CBDC assigned value.
You’d have to government in a fix for the fix that was governmented in. Hence all regulations really.
If you had to pick between a shithole house and a mansion for the same price, what do you think ‘the market’ would want? As it turns out, humans make up the markets. We make up literally all of our social constructs. Duh.
In short,
This is a Rick and Morty skit that accurately displays the pain that could happen by changing the value instantaneously;
If there was a glitch and things went to zero even for a day, then we’d be fucked. That’s one of the many dangers of CBDC.
If instead of a galactic government, you picture the scenes as a grocery store, farmers market, or a stock market. The Change of one asset or commodity will be felt and cause ripple effects through all things.
But also, Fiscal policy resulting in economic coding and quantifying of everything will then be measured further by CBDC. From a disconnected distance of ivory towered politicians that complain about a salary of $200k not being enough, because why do they vote to give themselves pay raises?
Do you really want to put barcodes on Trees? On birds? On Babies? Do we really want to quantify everything with a value measured in the eyes of CBDC? Set by some Alexandrian Politicians fumble fucking in their wheel house?
In Closing,
CBDC has a ton of risks. I’m not talking about CBDC directly, instead I am focusing on the after effects. If we were to implement CBDC, then there are more risks associated with the coding and programming. Our fiscal and monetary policy would inflict higher speeds of pain.
The Velocity of Money would be too fast and even too furious.
Which is bad.
And Economic Violence will be felt much faster. Like a turbo Charged 911 spider. Do you want EVERYONE driving a super car? Doesn’t sound safe, let me tell you. We don’t want everyone to have a fast economy either, for very similar reasons.
You don’t want an economic system that is too rigid or too fast, or else it becomes too plastic. The systems need a sort of elasticity so it doesn’t get warped and distort and break like a brittle fragile thing. The slightest spoofing of numbers could result in immediate imbalance and uncertainty.
There’s a reason why secondary and tertiary markets exist. It’s the reason why other people have different currencies beyond monetary sovereignty. It’s not just because these extra markets are profitable, but also because they provide a sort of ‘economic buffer’ to lessen the pain before end consumers feel it.
I mean, if the spot price of crude oil was instantaneously felt by the end consumer, we’d be fucked. Your average Joe would be keeping up to date on the Spot Price of Oil so they can pay for gas. Before you know it, they’re pricing in oil drills and oil rigs to future price in the price of gas. All without ever factoring in the refinement and logistic steps in between. Because who the fuck does all this math to justify if “the price is right” when the price is fixed?
This would ultimately result in a price detached from value (more so than normal) and we’d be fucked. And this can happen to virtually all consumables from eggs to toilet paper. We’d. Be. Fucked.
Here is a depiction of the average consumer ‘pricing in’ CBDC based on fixed values;
Yea, so TLDR;
Instantaneous Price Fixing from CBDC policy is bad
*Not Valid Financial, Legal, Life, or Any Advice
Post Script;
Honestly, if we do go the CBDC route, a Balkanization of Currency would actually be beneficial.
Many states should just have their own state currency, and we should go back to that infighting issues and trade disputes between states. A Centralized currency makes for a stronger Federal Power, but it results in sacrifices by the individual States. For better or worse.
And with the instantaneous powers of CBDC, it would be much better to have many smaller markets, that serve as nodes to trade from and with. That way the entire system isn’t at systemic risk of collapsing and fucking everyone up. If for instance, California decides to be Retarded, the other 49 states don’t have to suffer. Under a Federal CBDC, all states would suffer.
We also, obviously, need better rules and transparency with CBDC itself. If CBDC is private to the people, then it’s the enemy of the people.
But uh, these are like opinions from some rando on the internet. So take em as you would drugs you find on the street floor.