Q
If the Treasury continues to spend the FED's dollars to stabilize the market by acquiring assets, and pushes the FED until their bubble is too large to sustain…
Couldn't the treasury cancel the debt,
close the FED,
and institute a new 'de facto standard'
based on the market(and the assets the treasury has acquired) itself, and monetary inflow/outflow…
rather than using the old gold standard?
It makes sense to me. Push the market down through "wild" PR in a time of duress, while stabilizing the market with by purchasing hundreds of billions of dollars worth of assets paid for by the FED.
Eventually when the treasury owns enough, and because those assets are based on ACTUAL value, the FED will have no leverage and the debt would be meaningless(as it already is).
De facto standard = market-backed standard?
Seems like because of it's scarcity, it is not flexible enough to sustain the growing population, even when adjusting the value.
Feels like a good model to use as an example, but might not fit the modern age as well. I don't know.