Quote:
Originally Posted by wig
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.
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they are backed by SOMETHING, thats what currency is, a promise of value.
I know, you mean "should not be backed by anything material", they should reflect nothing more than a promise to pay.
that does seem to leave us permanently vulnerable to manipulation by speculators, moneytraders, and black swans.
not that any of us here will likely have any influence on what currency will eventually become.
it's certainly possible that the metals thing will be tried as we go thru the turmoil of this century.