SOURCE
In the world of finance, one of the most perplexing questions that remains unanswered to this day is why an unbacked fiat currency has any value as a medium of exchange. While some argue that it is a reflection of faith in and the creditworthiness of the issuer, others contend that the demand for such currency is guaranteed by the requirement of the nation's subjects to pay taxes and account for them. However, these explanations fail to address the consequences of the massive expansion of unbacked fiat currency that occurs when the state treats it as real money. As a result, they are insufficient in providing reasons for the public's tolerance of repeated failures of currencies.
To highlight the depth of this problem, let us consider a thought experiment. We know that metallic metals, particularly gold, silver, and copper, have been used as media of exchange over millennia. The use of their value was broadened through credit in the form of banknotes and bank deposits, and the relationships between legal money and credit in its various forms were defined in Roman law in the sixth century. This system of money and credit, with the value of credit tied to that of money, has served humanity well ever since.
SOURCE
Now, let us imagine that in the absence of metallic money, a ruler instructed his subjects to use a new currency which he and only he would issue for public use. This new currency would undoubtedly be seen as a benefit to everyone, compared with the pre-existing condition of barter. However, the durability of the ruler's new currency would be in question. With no precedent, how could the currency be valued in the context of the ratios between goods and services bought and sold? And how certain could one be about tomorrow's value in that context? What if the king lost his power or died?
Clearly, without a reference to something else, the king's new currency would be a highly risky proposition and sooner or later would simply fail. And even when a new currency has been introduced and linked to an existing form of money, if the tie is then cut, the currency will struggle to survive. Without going into the good reasons why this is so, the empirical evidence confirms it. Chinese merchants no longer use Kubla Khan's paper made out of mulberry leaves, and German citizens no longer use the paper marks of the early 1920s. But they still refer to metallic money.
SOURCE
Yet today, we impart value to paper currencies issued by our governments in defiance of these outcomes. Custom is why we still think of currencies as money, even though for the last fifty-one years, their link with money was abandoned. The day after President Nixon cut the umbilical cord between gold and the dollar, the world continued using dollars and all the other currencies as if nothing had happened. But this was the last step in a long process of freeing the paper dollar from being backed by gold. The use of depreciating currencies as the basis for pricing everything is a perplexing phenomenon. Considering the inevitable change in their value, why do we continue to rely on them? Once the distinction between a stable currency and a faltering one is fully recognised, it's likely that people will abandon the latter and rerurn to the former. The ongoing developments in the financial world are hastening the approach of that moment. So whether you like it or not, fiat currencies around the world are heading to zero..... You can decide to continue to bury your head in the sand and ignore all the indicators, or you can take action NOW and become your own central bank and hold gold.and silver before its too late.
If you dont own any precious metals, then why not tell us? As a community we encourage ALL engagements and encourage everyone to take the plunge and own at lease a sinlge ounce of silver or a fraction of gold. If youre struggleing to find a safe and secure place to buy, reach out to the community as there is always someone willing to offer their time and advice to help you out.
40+yr old, trying to shift a few pounds and sharing his efforsts on the blockchain. Come find me on STRAVA or actifit, and we can keep each other motivated .
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You will hold gold and silver in precaution for a financial collapse. But at that moment the escenario will be:
Is better adquire agriculture and productive lands. That way you always keep the capacity of produce food and primarly products that all people wants in a crisis.
Whilst i dont disagree with you. As a silver stacker and part time prepper, the drive and dedication required for collecting precious metals, has also lead me to stock my kitchen/pantry with a decent supply of food(years). Have a functional garden that supports and subsidises my family through the growing seasons. Have a system of barter(crypto) outside of the control of the central banks.
Collecting precious metals is just one part of being ready and preparing for what i belive is the inevitable collapse of a giant, "rigged", ponzy scheme designed to keep the masses subservient and complicit
I like the IOU picture...lol... Anyway... Our New and Improved Monetary Tools will be 100% backed by our New Product Line of Silver and Gold "Coins"... Not backed by Bars sitting in Vaults, but Circulating Silver and Gold Coins... At least that's what I think is heading our way...
Now they can print as much as they like and not have to worry about it actually being worth anything! If you're short on cash why not print up another trillion!
Not very well according to many US Banks 🤣
Hey buddy. Long time no chat... how the fuck are you and the fam?
I don't believe the fiat system will completely fail. I still pay my stuff with my local currency because I cannot pay for my stuff with gold and silver coins.
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I would like to say about this that there are still many countries where paper currency is being used but we all have to think about it because we can never profit by keeping our money inside paper currency. Our savings will have to be kept in gold and silver. Even then, if people understood this, they would still be in very good profit today because the way we have seen in the last two or three years, silver and gold have given people a lot of profit.