Posted on 04/29/2016 9:36:04 AM PDT by blam
That is not a fact at all. Fiat money is currency made up by a government, not backed by anything of value. Gold is not nor has ever been fiat.
Sorry but gold, like every other currency, only has value because people are willing to take it in trade. Things of true intrinsic value would be useful when lost: food, shelter, tools. IE stuff we used to barter. Money exists to be an exchange layer on barter, so you don’t have to carry your chickens all over town. Anything useful, intrinsically valuable, innately makes bad money because you wind up using it for other stuff. Gold is the original fiat currency. But it was currency so long a lot of people have forgotten that it’s value is totally added by people.
Gold has been globally recognized as a currency forever, so it does not fall under the definition of fiat. Fiat is produced by a government and does not have to be backed up by anything of value.
You are correct about the bartering and the reason for currency though. Food has a value but not a lasting value as it is consumed, the real value is the means to either produce or buy more food.
Not really forever. For a few thousand years, and a lot of the world found it completely uninteresting until Europeans got there. But it’s still fiat currency. All currency gains its value ENTIRELY from people’s willingness to accept it in exchange for good and services. Gold is NOT anything of value UNTIL there are other people willing to take it in exchange for goods and services, it IS fiat currency. ALL currency is fiat currency. Always has been, always will be.
That's what makes me nervous sometimes. If they rejected Federal Reserve Notes altogether, and insisted on only accepting silver, platinum, bitcoin or barter, then they would seem more consistent. But, somehow, I am sure that might make others uncomfortable. LOL.
“The Market Oracle”?? Seems pedestrian enough to write articles and not rich enough not to.
The Europeans? Maybe you should go back an read some more history. The definition of fiat money is that it is made by A GOVERNMENT AND NOT BACKED BY ANYTHING OF VALUE NECESSARILY. you are correct that nothing is of value if it can’t be traded, but you can’t just make up your own definition of fiat.
Yes, the Europeans. A lot of the world saw gold as largely uninteresting and at best decorative before European brought their gold and silver obsessions to the area.
And gold MEETS that definition, it does NOT in and of itself have value. I’m not making up a definition, I’m pointing out a basic piece of reality that gold bugs refuse to understand:
unless somebody is willing to take it in trade gold is 100% WORTHLESS. It has no intrinsic value, gold coins pressed by the government are just as much fiat currency as dollars. The value of money comes EXCLUSIVELY from people being willing to take it, if it had value outside of that trade people wouldn’t be willing to use it as currency, they’d be too busy using it for its value.
Guess you’re not a believer. I do ure you to read history farther back that European though. Good luck!
I believe in facts and history. I HAVE read history further back than Europe, that’s why I know much of the world found gold to be ornamental and not terribly valuable until colonization hit them. Suddenly having a bunch of people show up that really wanted their gold MADE gold valuable in that region. Prior to then it was often just a shiny metal, too soft to be useful.
Thanks
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If you ARE holding the plutonium, I hope you already have all of the children you want! ;-P
Prepaid cards require registration now thanks to Obama.
Forgot to check the spell check. lol
And yes.....no mo chitlens for me.
look at the lower right corner of the debt clock thats interesting.
Oh...I'm not the brightest bulb, what's it mean?
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