Is anyone else concerned about how our money is inherently worthless? 😂 imo it’s gold/silver or nothing

@InvaderNice There’s also a theory that this fake money is the cause of the boom/bust cycle.

Time preference is how much people are willing to delay in order to gain more.
Interest rates under natural conditions (different loaners competing in a market) should reflect the average time preference of the population.
Since they are set artificially by the government, they send the wrong signals to businessmen as they invest to produce goods that people won’t have the savings to buy.

So Boom = when the banks give loans out to businesses
Bust = when the investments fail

@MrMonnyPenny I’ll keep reading that over until I understand it lol

@InvaderNice best explanation I’ve found is this book: https://mises-media.s3.amazonaws.com/What%20Has%20Government%20Done%20to%20Our%20Money_3.pdf

Part of the reason it’s all so complicated is to disguise what’s going on 😂

@MrMonnyPenny [quote]But it’s not arbitrary because it’s what naturally emerged as a medium of exchange.[/quote]

Answer this: why is gold valuable?

Gold is valuable because its rare, has commodity and productive uses (Dentistry, Electronics, Jewellry), and because most people recognise its value, it’s become valuable as a medium of exchange. (I want to acquire gold now, not because I want jewellry but because I want to trade it for something else).
-There’s also the fact that it can easily be melted down into various sizes and is transportable


So whereas, discovering more gold causes inflation it’s still a benefit to society as it has productive/commodity uses. Fiat currency on the other hand doesn’t bring the same benefit to society when it inflates.

Also, I don’t necessarily care about gold - I just care about what has emerged as the go to commodity as unit of exchange. (Whether it be gold, silver, corn, salt, bottles of gin, cigarettes etc.)

@MrMonnyPenny The two more modern reasons are very bad for a currency. You don’t want to be hoarding something that could be put to productive use. The third is highly arbitrary, we use it for jewelry because we have decided it’s pretty and valuable, but it’s valuable because we think it’s pretty.

Also, your apparent fear of inflation is very I’ll founded.

@puck61 If we are talking about societal collapse due to lose of electronics, I’d much rather have bills. Can use them as tinder, napkins, rags, emergency tp, etc., plus they are light and flexible, which makes them very portable. All you can do with gold is look at it, and it’s really heavy. Silver is moderately more useful, since with the right knowledge and tools you can use it to purify water for drinking, but there are other methods that are more practical.