I'm just sitting here wondering what the real difference is between Federal Reserve Notes (FRNs)- US "dollars"- and welfare.
Neither has any basis in reality or inherent value. Both are printed or electronically created out of thin air, and backed by nothing and really paid for by no one. Other than the fact that the more of either one there is, the less value each "dollar" has. Just like any other counterfeiting operation.
The use of either one also contributes to the coming economic collapse.
The only difference I can see is one of perception.
I haven't had a single paper "dollar" in my wallet for over a couple of weeks now, but in my pocket I have a couple of Morgan silver dollars, and a few ounces of .999 silver. So, I'm "broke", yet I'm not.
Right now, that real money doesn't work well at most stores or for paying bills, but I don't carry it for "right now" anyway. I carry it for when a paper (or electronic) "dollar" finds its true value. And, I carry it in case of emergency, in the hopes that if I find myself in dire circumstances I will have something of value to trade, since I usually have no FRNs.
As long as other people keep accepting FRNs in trade, I will continue to accept them. But the instant that trust starts to fade I will start only accepting REAL money for goods or services. I hope others are smart enough to do the same. Let the hyperinflation be powerless against you.
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But gold/silver don't really have any inherent value as a currency either. They are just metals whose price is easily manipulated. In my opinion, a currency should be backed by a basket of commodities instead of just one. This would make a currency the most solid.
ReplyDeleteGold is valuable as jewelry and in electronics. Silver is valuable in many applications which actually use it up. Both have been used as currency for thousands of years.
ReplyDeleteSo, while I agree that no one should ever impose a "gold standard" (or any other currency "law"), I'm not worried about gold or silver becoming as worthless as fiat "money" anytime in the foreseeable future.
Let the market- and by that I mean each individual- decide what they wish to accept in payment for each trade. Don't impose a "one-size-fits-all" currency.
FRN's have a value much like personal checks. As long as you accept the intent of the issuer to replace the paper with something which you value, they're good. A difference is that FRN's can be and are intentionally inflated, while personal checks cannot. Personal checks can be totally bogus, whereas FRN's are currently legally mandated as payment for debts.
ReplyDeleteOn a personal note, ALL my checks are good as long as you don't try to cash them. - Homebru
"...ALL my checks are good as long as you don't try to cash them."
ReplyDeleteSo, just like FRNs.