Ask Lemmy

That’s called taxes. That’s literally what taxes are, destruction of currency. Go pay your taxes to the treasury in cash, they will literally shred it.

Create a virus that only targets dollars.

Remove the peoples trust/value from it. Make societies (even small scale households/towns) around a currency-less system with things taken care of by each other using no money, just an agreement (it's how communities used to work for thousands of years before capitalism, so it's completely do-able). Or use a new money if you wanna start the failed capitalistic orphan grinder up again. Essentially starve the currency from trust/value to people and its value goes back to what it was, nothing. Money has no intrinsic value so if you make systems outside of that currency that stops people from requiring it, all the made up value goes back to zero.

Inflation. Make the currency worthless.

Taxes. The government can just print more money to pay for everything, but instead they tax to take that money out of the system

If you want to know how to reduce the value of the dollar as a currency, you may want to look at what Trump has been doing since he entered Office.

Otherwise, I'm not sure to understand the question.

devaluing the dollar, basically if countries stop trading to the USA, it will be like the ruble, pratically worthless if not for the yuan.

You could throw it into the Money Hole

Removing currency isn't the same as removing value.

The quickest way to remove currency is raising the reverse ratio.

'Destroying' money, either physically burning banknotes or just setting some numbers to a lower value in a digital ledger, does not remove value from the economy. When you create money, usually through debt, it takes its value from the currency that already exists. Money is also destroyed all the time through the payment of debt but not as fast as it's created, that's why its value mostly goes down (prices mostly go up): Money printer goes BRRRRRRRRR, money burner goes brrr.

What matters for an economy, and therefore the value of its currency, is the value they create–simply put, how much resources they exploit and how efficiently. The most important resource (in my opinion at least) is people.

So if you want to remove value from an economy you have to take those resources away, or make them hard or impossible to exploit efficiently by them, or make them obsolete...

emp bombs in the right places

Would the plot of Goldfinger help here? 🤔

What would happen if you nuked Fort Knox? Especially now that the dollar isn't backed by gold?

1: Invest in crypto 2: Invest in AI 3: Buy high, sell low

Before I answer,how much research have you done into the creation of the federal reserve, the mechanisms it uses, and the outcomes it seeks to achieve?

Just want to know what level of baseline knowledge this conversation should assume

Create a new currency using USD as a base; stop printing USD, re-evaluate USD to be near worthless compared to new currency (1 USD : 100 N(ew)USD

Following this, implement either hyperinflation after USD is largely switched over, and it'll destroy 99% of value, or you can stop printing right after, and NUSD will quickly devolve lower than it can even be represented, leading to inflating prices, and less use of NUSD in place of literally anything else, with no access of USD to even return to

Give it to the KLF.

Become President and do exactly what Trump is doing.

Money gets created in the USD economy all the time, whether by invented debt, cash printing, or the issuance of bonds.

The Federal Reserve targets about a 2% inflation rate:

https://www.federalreserve.gov/economy-at-a-glance-inflation-pce.htm

What is the Fed's inflation target?

The Federal Reserve seeks to achieve inflation at the rate of 2 percent over the longer run as measured by the annual change in the price index for personal consumption expenditures (PCE).

...but that's not something unique to the dollar. Other countries will have central banks that will do the same thing.

For the euro, this is the European Central Bank:

https://www.ecb.europa.eu/mopo/strategy/pricestab/html/index.en.html

The ECB’s Governing Council, after concluding its strategy review in July 2021, considers that price stability is best maintained by aiming for 2% inflation over the medium term.

For the British pound, the Bank of England:

https://www.bankofengland.co.uk/monetary-policy/inflation

We are responsible for keeping inflation (price rises) low and stable. The Government has set us a target of keeping inflation at 2%

Just part of keeping a functional economy.

So let's say you wanted to permanently remove value from the USD economy for some reason.

I think what you're wanting to do is to decrease the money supply, which you wouldn't normally call "removing value from the economy".

You don't normally want to see deflation, as deflationary spirals create problems:

https://en.wikipedia.org/wiki/Deflation

A deflationary spiral is a situation where decreases in the price level lead to lower production, which in turn leads to lower wages and demand, which leads to further decreases in the price level.

But the Federal Reserve can and does create deflationary pressure, reduces the rate of inflation:

https://www.stlouisfed.org/in-plain-english/expansionary-and-contractionary-policy

How Contractionary Monetary Policy Works

Suppose that inflation has exceeded 2 percent for some time and the Fed recognizes that individuals are starting to expect high and rising inflation going forward. In this situation, the FOMC might decide to use contractionary monetary policy to bring actual and expected inflation back toward its target, to maintain price stability.

To do this, the FOMC could raise its target range for the federal funds rate (FFR) and increase the administered rates—interest on reserve balances (IORB) rate, overnight reverse repurchase agreement (ON RRP) offering rate, and discount rate—accordingly.

Create and then destroy some crypto currencies and their trading places.

For the record the US Treasury does actually physically burn real money. When bills become too degraded, have errors, or generally aren't fit for circulation they need to be removed. They usually contract with an outside disposal company and the process is overseen by the secret service. Usually biomedical waste services have the necessary secure procedures and equipment to properly incinerate cash

Quantitative easing, heaps of pointless tariffs, a brain drain/immigration crackdown to get rid of all the cheapest and smartest labor, and broad policies of isolationism so that the dollar loses world reserve status.

All of this is already happening, and I halfway suppose the OP knows it.

Taxes. This is the most effective way to reduce the amount of money in a system

Give it to billionaires who will never need to spend it. I don't know how efficient it is, but we already have a system set up for it.