Quote:
Originally Posted by Bill8
well, I'm not suggesting they might be usefully backed with gold or metals with perceived rarity.
currency is transforming before our eyes, in our lifetimes, and the future of currency is an interesting problem.
commodities baskets have been proposed in the past - in a sense a commodities basket is just a proxy for international sentiment - so they have to be put on the list of possible future models for currency.
baskets have advantages over single metals, in that they reflect use, not storage of value thru rarity and resistance to decay.
wig just started his argument, I wanted to see where he would take it.
currency and teh rule of nations is a tough problem, and we are likely to see some wild swings this century.
|
They should not be backed by anything. The argument that backing currencies with commodities will avoid economic "black swans" or keep the supply of money stable are pipe dreams.
It would only ensure the economy itself is stably at a Stone Age level.
I'll expand on this but I am going out of town so perhaps early next week.