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Will The Fiat Monetary System Collapse?


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The fiat money system is the best kept secret in the Western World. If people were educated from childhood to realise that a piece of paper is just that, and is otherwise worthless. Who would accept it in return for their labour.

The only reason I will accept it is because 99.999% of everyone else are daft enough to give me goods for it.

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The answer is freedom.

We've already found out in practice. The US system was set up exactly as you describe and now look at it. This is the same problem I have with gold standards - if they worked we wouldn't be here now.

Either you think that people from 1700 and odd were a completely different species or you accept what history tells us - that any mandated standard inevitably falls to corruption. Might take hundreds of years, but it will inevitably get corrupted. Therefore it's silly to claim that the answer to our mandated standard is another mandated standard.

I think that a universal means of exchange of the type I describe is desirable though of course potentially dangerous in the ways you describe.

Well understood and freely examinable by all participants (as far as they are able), its social value obvious to everyone, I think that on balance such a system could be made to work, though maybe I am overly optimistic about human nature.

The US money system was finally taken over by commercial VIs in 1913 and has been used as a means of oppression and exploitation ever since. The battle for US monetary control up to this point is very interesting. Here is a neat potted history:

http://www.financialsense.com/fsu/editoria.../2007/1020.html

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I think that a universal means of exchange of the type I describe is desirable though of course potentially dangerous in the ways you describe.

Well understood and freely examinable by all participants (as far as they are able), its social value obvious to everyone, I think that on balance such a system could be made to work, though maybe I am overly optimistic about human nature.

The US money system was finally taken over by commercial VIs in 1913 and has been used as a means of oppression and exploitation ever since. The battle for US monetary control up to this point is very interesting. Here is a neat potted history:

http://www.financialsense.com/fsu/editoria.../2007/1020.html

Fiat can only way if there is a demand created for it.

That demand is created by taxation.

Taxation is theft, coercion and extortion. There is no freedom involved in this because freedom is the freedom to say no.

The sort of person who will happoily use theft, coercion and extortion will exploit to the maximum extent possible. This means that -

1) All fiat montary systems are inherantly immoral and the peopel who operate them scum.

2) All fiat systems will inevitably become debt based, because that's the maximum gain for the issuer of the fiat, who obviously has no morals.

3) The profits from the fiat system will be used to make sure the fiat system endures for the people who benefit from it, to the detriment of everyone else.

The americans were very well read, they were very well informed. The bankers used their profits to arrange education for their children and over time acquired complete control over economic life, culminating in this latest monetary crisis. Under any governmental system of mandated currency and taxation, exactly the same thing will happen all over again.

We'd get a 60-70 year period of relative freedom and then the slow fall into todays world once more. Actually, maybe I am being too harsh and if I am I apologise but those of us who know about this have to get it right - yes your system would work but not for very long and would lead straight back to where we are now.

Edited by Injin
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Fiat can only way if there is a demand created for it.

That demand is created by taxation.

Taxation is theft, coercion and extortion. There is no freedom involved in this because freedom is the freedom to say no.

The sort of person who will happoily use theft, coercion and extortion will exploit to the maximum extent possible. This means that -

1) All fiat montary systems are inherantly immoral and the peopel who operate them scum.

2) All fiat systems will inevitably become debt based, because that's the maximum gain for the issuer of the fiat, who obviously has no morals.

3) The profits from the fiat system will be used to make sure the fiat system endures for the people who benefit from it, to the detriment of everyone else.

The americans were very well read, they were very well informed. The bankers used their profits to arrange education for their children and over time acquired complete control over economic life, culminating in this latest monetary crisis. Under any governmental system of mandated currency and taxation, exactly the same thing will happen all over again.

We'd get a 60-70 year period of relative freedom and then the slow fall into todays world once more. Actually, maybe I am being too harsh and if I am I apologise but those of us who know about this have to get it right - yes your system would work but not for very long and would lead straight back to where we are now.

You are correct in your history and psychology, Injin.

However I cannot help but retain some optimism for humanity (in the longer term) and consider it worthwhile to try again for a workable fiat universal means of exchange. Perhaps the triumph of hope over experience, as Samuel Johnson said of second marriages, but, as another saying aptly puts it ...

Once more for the kiddies ...

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Injin, you seem to dislike both fiat and gold based systems, what kind of system do you think would work?

i've no idea.

No one does, that's the point of what I am saying. I can no more tell another two people what they should use as a medium of exchange than I can fly. If it was possible to map other peoples values in that way then communism would work. The only thing I can no is my own values and I don't care for gold or fiat. I like time, personally but it should be up to individuals.

You are correct in your history and psychology, Injin.

However I cannot help but retain some optimism for humanity (in the longer term) and consider it worthwhile to try again for a workable fiat universal means of exchange. Perhaps the triumph of hope over experience, as Samuel Johnson said of second marriages, but, as another saying aptly puts it ...

Once more for the kiddies ...

I am optimistic for humanity myself. I am human, I've given up on the idea. Now I just need to persuade the other 6 billion.....:)

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