Could Hard Commodities end up replacing Fiat Currency

Stew

Anybody else getting the feeling that on the state and especially on the national
and Super Rich levels that there is an understanding that physical hard commodities
in possession are going to be the medium of exchange for huge purchases for country's
I don't know the exact math but I could see something on the order of a ship full of corn
being traded for 10 or so tons of copper instead of the current failing fiat currency's
I know it may sound a little on the paranoid side but there just seems to be a trend
towards these things. With China importing gold and silver at unprecedented levels
along with actively suggesting to their population that they buy gold.
And JP Morgan-Chases recent activity in the copper market getting ready to set up a copper exchange.
Earlier this month Russia and China set up an exchange to directly trade ruble for yuan.
Effectively starting the end of the U.S. Dollar as the reserve currency of the world.
I am by no means an economist but I am sure there are some major perks that we
are going to lose by the U.S.Dollar not being the worlds reserve currency.
Hopefully some one with more of a world economics background can chime in
on what those perks may be.

Wolf359

You would trust an economist these days? Most spin fairy tales, and even the honest ones don't really know because the world reserve currency has never collapsed before.

In my opinion, Gold and Silver will be the money of the future. Period.

mrearlygold

When pigs fly or when freedom is restored. Ha!

Stew

<< <i>You would trust an economist these days? Most spin fairy tales, and even the honest ones don't really know because the world reserve currency has never collapsed before.

In my opinion, Gold and Silver will be the money of the future. Period. >>



What I meant was someone with more knowledge of world economics
than I currently have. Not necessarily a professional economist
who are the ones who got us where we are now.

I agree with your opinion being that right now gold and silver are considered part of the
commodities family. I was just wondering about the rest of the commodities family.

ebaytrader

Countries with stable currencies will continue to be accepted. The Swiss & Japan just to name two that still have strong money. Those countries will find sellers willing to deal with them on their terms.

Commodity trading / barter is a looooooooooong way off.

PinkFloyd

Trading a pile of copper for corn is a pain. Even if we saw a widescale crash of the world's currencies, I think that the trading of cash instead of metals would revert quickly. It's just too easy. Granted, i think that these currencies in this hypothetical situation would be directly based on a stored metal...for a little while at least.