Pro-Fiat Money... Debate Me and get your A$$ Kicked... (page 2)

Satanus

I agree. Money is based on faith, faith that that piece of paper is worth something. Money is based on agreement, agreement that that piece of paper is worth so much. It's a good invention. It's also language that everyone on this planet who's in touch understands. Money is magic, it can be turned into practically anything. Yes, it can buy love, most of the time.

S

hybridous

Here's my complaint about fiat money.

Let's pretend there's no money, we are neighbors who barter with each other. One weekend, we agree to a deal whereby I paint your shed in exchange for 2 chickens. We both have come to the agreement that my labor and time is worth 2 of the many chickens you raise in your yard.

So I perform the job to your satisfaction. But I don't want the birds right now, maybe my freezer is too full, or maybe you don't have enough to spare at the moment. So you write an IOU telling me to come back in a few months where we can settle.

Problem is, when I come to collect - you now declare the note is worth only ONE chicken. What happened to the buying power of my labor, between service and payment? This is a scam, and if you don't honor our agreement I won't do business with you anymore, and your reputation on the street is suspect.

This is analogous to fiat dollars. The instability is problamatic.

I take issue with your statement that all money is fiat. There's a world of difference between creating numbers in a database and actually twisting gold (or other metal) out of the ground.

Empires have come and gone, and so have their fiat currencies. Every fiat currency ever invented has failed after being inflated into oblivion. Hard money cannot be created so easily, and is therefore something of a protection, I think.

bonnzo

fiat still makes cars? who knew?

Confucious

Restrangle...

Um... I'll mow your lawn for $15. LOL.

Con

Confucious

Hybrid...

Interesting... Let me think about your comment.

Con

OUTLAW

Confusious..How about taking the Frigg`n Donkey?..I`ll give you 3 oranges!........................... Laughing Mutley ...OUTLAW

Confucious

Ok...

Hybrid.

Your analogy has made me think more than any argument I've ever thought about.

So, very good.

Ok... here's my response. And all this... very humbly.

So...

Lets say today - we say... no more paper money... just pure gold.

So money is just gold by the ounce - micro ounce, etc.

So I'm on this side of the computer and you are on the other side.

And you want to buy my lawnmower on Ebay.

So I say 1/4 quarter ounce of gold.

And you say... cool.

But what in the world we going to do?

Send 1/4 ounce worth of gold thought he mailman that might steal it?

So we come up with some universal IOU that "represents" 1/4 ounce of gold.

In other words. Even if we went with all hard gold as currency... there will always need to be a "piece of paper" that represents that gold.

Con

Confucious

Outlaw... 3 oranges to mow my lawn. No?

BurnTheShips

Debate Me and get your A$$ Kicked...

All in good fun here.

Well. Okay. I always love a good debate.

After all... ALL money is fiat.

Gold is not fiat money or fiat currency by definition.

Category error.

Game over.

BTS

reneeisorym

My problem with the whole ordeal is that my money in the bank isn't earning as much interest as the inflation rate. (The real inflation rate and not the dream the fed says it is). So if I put back $3000 in my savings for a rainy day, by the time the rainy day comes, $3000 is only enough to pay the light bill. I could take more risks with retirement money since it can stay put for the next 35 years, but I can't put my rainy day fund in an IRA.

Pro-Fiat Money... Debate Me and get your A$$ Kicked...

Share this