Pointless fiat currency, yes. Money backed by an actual set value and not manipulated, no. Even before the gold standard, the use of a common resource to establish the value of less common goods was used. Rice, in some asian nations. Salt, in Rome.
Money needs to be stable. In order to be stable, it needs to meet these 7 characteristics.
(1) It must be durable, which is why we don’t use wheat or corn, or rice.
(2) It must be divisible, which is why we don’t use artwork.
(3) It must be convenient, which is why we don’t use lead or copper.
(4) It must be consistent, which is why we don’t use real estate.
(5) It must possess value in itself, which is why we don’t use paper.
(6) It must be limited in the quantity that is available, which is why we don’t use aluminum or iron.
(7) It should have a long history of acceptance, which is why we don’t use molybdenum or rhodium.
Only GOLD and SILVER fit all seven characteristics.
EVERYTHING else is inferior which makes them credit. They are essentially Gold substitutes.
If you had a race to see who was the fastest man in the world there can only be one winner and ONLY ONE person can hold the label of the fastest man in the world. It doesn't mean that the rest are slow, it just means that they are not the fastest.
Value is ultimately determined by the person holding the money. "He who has the Gold makes the rules."
(5) It must possess value in itself, which is why we don’t use paper.
that's where gold is propped up by everyone else, just like the dollar. it doesn't feed people, it doesn't house people, it doesn't power mechanisms. it's only value is the fact that it has value, and everyone else assigns it value.
Money is an illusion shared by pretty much everybody.
Pointless fiat currency, yes. Money backed by an actual set value and not manipulated, no. Even before the gold standard, the use of a common resource to establish the value of less common goods was used. Rice, in some asian nations. Salt, in Rome.
no money is backed by value anymore.
even when it was backed by gold, gold was only valuable because people said so. it wasn't like food or fuel.
Gold is money. Everything else is credit.
Money needs to be stable. In order to be stable, it needs to meet these 7 characteristics.
(1) It must be durable, which is why we don’t use wheat or corn, or rice.
(2) It must be divisible, which is why we don’t use artwork.
(3) It must be convenient, which is why we don’t use lead or copper.
(4) It must be consistent, which is why we don’t use real estate.
(5) It must possess value in itself, which is why we don’t use paper.
(6) It must be limited in the quantity that is available, which is why we don’t use aluminum or iron.
(7) It should have a long history of acceptance, which is why we don’t use molybdenum or rhodium.
Only GOLD and SILVER fit all seven characteristics.
EVERYTHING else is inferior which makes them credit. They are essentially Gold substitutes.
If you had a race to see who was the fastest man in the world there can only be one winner and ONLY ONE person can hold the label of the fastest man in the world. It doesn't mean that the rest are slow, it just means that they are not the fastest.
Value is ultimately determined by the person holding the money. "He who has the Gold makes the rules."
I don't understand how copper lacks "convenience".
that's where gold is propped up by everyone else, just like the dollar. it doesn't feed people, it doesn't house people, it doesn't power mechanisms. it's only value is the fact that it has value, and everyone else assigns it value.
but this is a very recent financial experiment- only since 1971 has the US dollar been backed by nothing.
massive inflation since 1971 kind of proves it failed.
More and more people avoid saving in dollars to avoid inflation.
Wasn't the first national currency backed by nothing and then rapidly switched over because it was worth nothing?
I seem to remember something vaguely to that effect regarding financing for the revolutionary war