Options
non-fiat currencies

what commodity do we have an infinite supply of?
don't we need a virtually unlimited supply of something as a backing to a currency?
gold and silver has limits to amounts we can mine. do we then move to diamonds?
do we have something else? grains of sand?
do we hope not everyone cashes in paper for reality? can we really expect that, especially in times of economic trouble?
don't we need a virtually unlimited supply of something as a backing to a currency?
gold and silver has limits to amounts we can mine. do we then move to diamonds?
do we have something else? grains of sand?
do we hope not everyone cashes in paper for reality? can we really expect that, especially in times of economic trouble?
Current maintainer of Stone's Master List of Favorite Websites // My BST transactions
0
Comments
Interests:
Pre-Jump Grade Project
Toned Commemoratives
Interests:
Pre-Jump Grade Project
Toned Commemoratives
water may be golden as population increases
When the dollar was backed by gold and could be redeemed for gold there was great demand for it. When the gold backing was removed and it could no longer be exchanged for gold there was still international demand for it because the Saudis agreed to only accept dollars for oil. Now that international trade for oil is accepting other forms of payment demand for the dollar is dwindling, especially since the central bank issuing it is recklessly issuing unlimited amounts of it.
The reason for backing a currency with something that is in limited supply, such as gold, is to put restraints on those that would create currency out of thin air. A gold backed dollar requires someone to put up the gold, at a certain expense, to create new dollars. A gold backed currency forces fiscal responsibility upon those that issue it and protects its value for those that would hold it, including foreign governments.
It's like the plastic poker chips you have to pay $1 for at the casino. In reality they are backed by a $1 bill, but If you could buy them with a cup of water imagine how worthless they would be.
No Way Out: Stimulus and Money Printing Are the Only Path Left
As for population increase- yeah, and we don't even have to wait until then to see that it's invaluable. Geopolitical conflicts throughout the world have begun due to access of water, and economists regularly state that the only definite commodity that'll always be in regular demand is water itself.
But you weren't asking for the most valuable commodity in the future- you were asking for an infinite supply of something (which water may not necessarily be) and something to back up currencies.
However, I must ask: why do we need a material to back up currency? I mean, the US has been doing it for quite some time. I suppose you could present arguments in favor of a commodity-backed currency (i.e., "gold standard") but the US has been surviving off that standard for quite some time now. Heck, during the time the US went off the gold standard, countries (i.e., Zimbabwe) even pegged their currency to the value of the US dollar.
Currencies work in funny ways, but ultimately, I'm not so sure that we must back them up with material. I guess one could argue that it's a fine way to keep government spending in check (don't spend a penny that can't be backed by some gold) but regardless, the US is capable of large amounts of wealth, maybe even an infinite amount- and that wealth may be restricted from being monetized if we only keep that money backed by a finite commodity, such as gold or silver.
Good question, though, and it certainly leaves doors open for debates.
Interests:
Pre-Jump Grade Project
Toned Commemoratives
<< <i>what commodity do we have an infinite supply of? >>
Unless I misunderstand the definition of "infinite", I can't think of any.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
growth will slow once population tops out. slow but hopefully not stop.
maybe by then we will all have been bought by China and India using our own worthless dollars.
<< <i>
<< <i>what commodity do we have an infinite supply of? >>
Unless I misunderstand the definition of "infinite", I can't think of any. >>
will we need a backed, non-fiat currency?
in 1000 years, will we have enough of said backing commodity as economic growth continues?
that's my real question.
<< <i>what commodity do we have an infinite supply of?
don't we need a virtually unlimited supply of something as a backing to a currency?
gold and silver has limits to amounts we can mine. do we then move to diamonds?
do we have something else? grains of sand?
do we hope not everyone cashes in paper for reality? can we really expect that, especially in times of economic trouble? >>
``https://ebay.us/m/KxolR5
<< <i>what commodity do we have an infinite supply of? >>
"Only two things are infinite, the universe and human stupidity -- and I'm not sure about the universe." -- Albert Einstein
Otherwise it would of course be worthless....
What's wrong???
Lost your faith in the "full faith and credit" one of the greatests economies on the planet?
Happy, humble, honored and proud recipient of the “You Suck” award 10/22/2014
yes.
<< <i>don't we need a virtually unlimited supply of something as a backing to a currency? >>
If you have an unlimited supply of something then it has little or no value. In order to have a non-fiat currency it must be backed by something of recognized value. There is an argument to be made that non-fiat currency is not practical now as it limits the amount of currency that can be in circulation.
World Collection
British Collection
German States Collection
Gold backing never worked because even with gold politicians will still spend more than they have. Every
gold currency ever instituted has failed. There is no "intrinsic value" in gold anyway since value is a collect-
ive belief and beliefs are always subject to revision. Individuals rarely modify their beliefs but groups do.
Gold is inappropriate in the modern world due to its valatility and propensity to cause economic crashes. All
fiat systems are certain to crash eventually as well and denying it is like saying all men aren't mortal because
all men aren't dead.
The one thing in infinite supply upon which currency should be based is the genius of mankind. Economies
and populations steadily increase because man continually overcomes obstacles and invents new ways to
increase wealth (though ironically in the here and now we are destroying wealth to increase the finances of
a few).
Currency should be like shares of stock except that they grant no special privledges or tax breaks because
you have a lot of them. They should pay a dividend every year set by the increase in productivity of the na-
tion. The dividend will make the currency strong and form the basis of a real capitalism. Rather than building
garbage that quickly goes into landfill to keep the economy churning we need quality products and a long
term perspective.