Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: ex 98C MI Dude

Money has to be based on something connected to reality (as opposed to gold); best would be to base it on some typical basket of the goods and services which your country actually produces.


38 posted on 01/06/2011 4:39:05 AM PST by wendy1946
[ Post Reply | Private Reply | To 36 | View Replies ]


To: wendy1946
Basing a monetary system on consumables (which is what goods and services are) is a recipe for disaster. Your washing machine is not a store of wealth, nor is your visit to the doctor.

Gold is a store of wealth (the labor needed to mine, refine, smelt) and not a consumable, but not necessarily the best basis for trade (portability and availability), which is what currency must also be. So we have our dollar, which is based on the future labor of the nation (also called debt, but that really isn't a true representation). Works pretty well.

43 posted on 01/06/2011 6:03:37 AM PST by ex 98C MI Dude (Alea Iacta Est)
[ Post Reply | Private Reply | To 38 | View Replies ]

To: wendy1946
Money has to be based on something connected to reality

Gold is reality. Deal with it.

45 posted on 01/06/2011 6:18:58 AM PST by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
[ Post Reply | Private Reply | To 38 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson