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Originally Posted by Alarti0001
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We arent in the stone age anymore.
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Yeah, instead we're just in the dark ages, when the Chinese were first learning the disaster of paper currency.
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The value of the dollar is just like any other good. Supply and Demand. If we went to a gold currency the supply would be minimal thereby increasing the value of 1 dollar. This would just change how many dollars you would get paid at work. Its all about what you can get with what you have. Gold would mean you could fill your tank with (bullshittin) 5$. However, this matter little if you are making .50C an hour.
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Except the dollar is not like any other good. It fails 4 of the 5 criteria I listed as necessary for a currency. The core of it is that people must value whatever is being used as currency. The dollar has lasted longer than any paper currency before because people still trusted that it would maintain a relatively stable value. That trust is being rapidly eroded. Inflation is on the tongues of nearly every businessman these days. We've only been spared the worst thus far because the Europeans are doing a worse job of managing their paper currency than we are. We are able to export a lot of our inflation abroad, but this will not continue for very long.