Guest Posted September 26, 2012 #51 Share Posted September 26, 2012 the marketplace decides its value just like everything else. economics 101. if you dictate an unrealistic value for something, then things go haywire. iron corrodes as much as fiat money. try accumulating iron for your retirement, where would you be in 99 years? same as if you had accumulated fiat currency. iron is abundant, the iron supply would grow as much as much as fiat currency after 100 years. so a choice between iron or gold? no contest. how do you peg a currency to the value of work? what does that even mean? you peg it to the average salary? so you peg money to money? confused. food rots, the value of food can be manipulated simply by monopolizing farmland and restricting or expanding production, just like fiat currency. you want something whose quantity cannot expand or contract at the will of some greedy b*******. you would have the same problems as fiat currency and the money addicts and their political enablers would see you starve before their profits are affected. gold or food? no contest. fiat dollars are not value. value is what the market sentiment decides is value. you don't print value out of thin air and you can't buck the market even if you own all the guns. speculation does not increase the money supply, increase in money supply feeds the speculation, a currency backed by something tangible and a seperation of investment banking from commercial banking would prevent hysterical speculation. Gold is arbitrary just as Iron, work and food - there is nothing magical about Gold as a standard - its just a rather impractical and restrictive one to choose. Money is a fiction which we all agree to abide by - but it is us who consensually decide what that money represents and how it is managed. We can choose any fixed standard. Pegging your hopes to one arbitrary yardstick over another - simply because we have traditionally used Gold as a standard - isn't actually a well thought out solution. Gold was dropped as a standards for many reasons, some good some bad. The main reason was its intrinsic inflexibility. If any of you had an ability to understand that most thing in human society are consensual fictions - you would realize that choosing one fiction over another is simply a matter of choice and those choices should be based on sound reasoning - not nostalgia and sentiment. Br Cornelius Link to comment Share on other sites More sharing options...
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!Register a new account
Already have an account? Sign in here.Sign In Now