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To: expat_panama
Your dollar bills are not real money.

Dollar bills are currency. Like any other Fiat currency they have no value in themselves. If you hold dollars you are completely at the mercy of the issuer.

If the issuer creates trillions of dollars (or pounds, yen etc) and that Fiat finds its way into circulation, then your purchasing power is destroyed.

But real money retains its value. That is one of the attributes of money - that it has an intrinsic value that provides its purchasing power. It has no counter-party risk.

Don't believe me? Then just hang on a few months. A lot of monetary delusions are going to be dispelled this year.

16 posted on 02/17/2016 9:58:30 AM PST by agere_contra (Hamas has dug miles of tunnels - but no bomb-shelters.)
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To: agere_contra
...dollar bills are not real money.  Dollar bills are currency.

-- and when we're on a philosophy or religion thread we can say "currency" is not money.  This is an econ thread and words mean things.  

From Mrriam-Webster:

Definition of money

plural moneys or mon·ies \ˈmə-nēz\

  1. 1 :  something generally accepted as a medium of exchange, a measure of value, or a means of payment: as a :  officially coined or stamped metal currency b :  money of account c :  paper money

 

What is 'Money'

An officially-issued legal tender generally consisting of currency and coin. Money is the circulating medium of exchange as defined by a government. Money is often synonymous with cash, including negotiable instruments such as checks. Each country has its own money, or currency, that is used as a medium of exchange within that country (some countries share a type of currency, such as the euro used by the European Union).

 

17 posted on 02/17/2016 2:13:03 PM PST by expat_panama
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