Quote:
Originally Posted by GuitarBizarre
You're banging on about how money doesn't work as if its self evident. Its worked for thousands of years and crisis relating to it have come and go. I'd say thats good evidence it does, in fact, work.
If you're going to hinge your argument on that assertion you should probably explain exactly how it is a system that has worked for thousands of years, doesn't work.
Also, you should probably look up the definition of fiat currency, as it seems you don't fully understand how currency has worked in recent history.
Edit: Also, the last case of Hyper-Inflation was Zimbabwe, a country with corrupt government and a hideously poor way of life even BEFORE its economy collapsed. Its hardly a damning indightment of monetary systems, its a comment on the incompetence of its government.
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ok. i'll explain it. again.
first and foremost, to tackle your accusation toward me about not understanding fiat currency. fiat currency is essentially what we think is money but is actually a derivative of debt. roughly 3% of the money in circulation can be accounted for in gold, which doesn't really matter, because gold is no longer relevant. this is the problem. the idea behind fiat currency is that essentially a government can go to a (private) bank and say "we need a million dollars". the bank then gives that government a note saying that the government now owes that bank a million dollars plus whatever rate of interest. the government will then go to yet ANOTHER (private) bank and deposit the money there on the pretense that the bank use the money to generate more money via more loans with more interest. the bank is legally obliged to only keep 10% as a reserve, basically proving that indeed the money in circulation has some sort of basis, and no, we at the bank are not just printing money and giving it away. so the bank can lend out the other 90% in whatever manner they wish, and the real MONEY CREATION happens when the public returns their loans to the bank with interest.
i've just realized that i don't need to explain anymore, because what i've written indicates not only my understanding of fiat currency, but also that all money (save about 3%) is based on debt and there is no logical way that it can ever be paid off... which
might have something to do with technology being an intrinsic part of our evolution which means it relieves us of mundane tasks while also making it harder for the general populace to make money to spend on stuff.
i agree with you that money has worked for a long time. and i also agree with you that i speak as though it's obsolescence should be self-evident.