Don Bielak
Oct 9 · 2 min read

Central bankers around the world attempt to enact policies which result in low levels of inflation. Most people understand that. Investing in treasuries will normally result in appreciation which negates that engineered inflation.

That’s why we chose to back our tokens not with fiat, which will lose purchasing power over time, but with a financial instrument which will make up for that loss. Whatever the rate of inflation happens to be at any given time, yields normally rise or decrease along with that index. So, you used 5% as an average. I’m not sure how many years your example uses to reach this conclusion, but if I use, say, the last decade, it will be more like 2%. If you want to use a longer term which incorporates the 1970s, for instance, you might be able to tailor the term to fit your target of 5%. Mark Twain said, “there are three kinds of lies. Lies, damned lies, and statistics.” 5% sounds like manipulation of the statistics to me.

Aside from automatically losing the argument when you resort to statements like “ You are pegging your currency to an institution of terrorism, war, crimes against humanity, environmental destruction, and more” you reveal yourself as an anti-American, anti-capitalist, leftist loon.

The funniest part of the whole statement is that it more closely resembles what has been perpetrated over the years in a quest for gold.

The Spanish waged genocidal wars against the indigenous populations of the Western Hemisphere in order to plunder their precious metals.

More recently, the Nazis confiscated tons of gold from European Jews during WWII.

Many more examples exist of people lying, cheating, stealing, even killing, to acquire — at any cost — gold.

As far as “backing the wrong horse,” I’ll admit that when you can show me a coin or token which is pegged to gold and can serve as a medium of exchange and a store of value and is accepted as such on a broad scale.

Chances are, you’ll be tearing up your win ticket long before I will.

Don Bielak

Written by

CEO of Monetran, LLC. Presently directing the development of Moneda — the first redeemable, asset-backed Stellar stable token.