Quote:
Originally Posted by MH
Creating new technologies is creating value from nothing.
Software you using is the same...value from nothing - an idea.
It is not about exchanging relatively fixed amount of goods for relatively fixed amount of metal anymore.
We would have value rise of gold coins till it was impractical to use them again.
Wealth is not about how many gold bars you own anymore.
Not saying that current system is perfect but gold based one is crazy...
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Ideas you newly deveklope and form into inventions, base on intellctual work invested before, and the fruits of intzellectual work done before. They do not come form nothing. And you need financial wealth to materilaise the idea you had, to make profit from it. Like the farmer needs seeds in spring to be able to harvest in autumn - and save some for the seeds he needs again next spring.
Fee market bartering is nopt about "fixed" prices as yoiu suggested above. It is about prices freeely negotiate by market participants.
Handling heaps of gold, and how impractical that is. If there were just one ton of gold in a country, the ammount of gold you would need to carry to buy a house, would be almost microscopic. Anyhow, nothing speaks against storing yopur gold bars in a safe place, say a bank, and be given a receipt for that - as long as the bank does and miust store all that gold in full material volume all the time. Originally, that is where banknotes are coming from! But then the other of the two archsins of modern fincial corruption was implemented: the fracional reserve system that allows banks to not store all gold given to them by the owner, but just a fraction of it, trading with the major part of it. I have explained that problem in a thread two or three weeks ago. Fractional reserve banking systems and FIAT paper money without true commodity-coverage are the death sentence for any responsible, reasonable fiscal system. Because on the very first occasion you allow a bank to not withhold all material value given to it for storage against a paper receipt,
means that this bank already is bancrupt because if people come and want back all their store gold, the bank cannot meet the demand.
So you can use paper banknotes as long as there is not more currency units represented by them as there is in real commodity, saved and stored away in some secure location.
The sin is if you use this system - and then intruduce a fractional reserve system. Then you know that you have let the ghosts out of pandora's box.
Money is like any commodity, good, item, that people are interested to trade with or to barter. Prices for these items must be allowed to be freely negotiated. A need for FIAT money of any form does not exist except for politicians who will always dislike that there are unsurpassable limits defined by a solid money to their unlimited spending fantasies. It is always the kings, the feudal elites, later the governments and politicians in republics and the fans of socialist planned economies that have corrupted and ruined currencies and thus destroyed economies. And they all bred corruption and plundering en masse.
Central Banks are not needed. State control of currency is not needed. Fractional reserve banking is not needed. Each of these three alone already is utmost destructive. Together, they are apocalyptic.
What states need to do is to be as little and small as possible, to tax and to spend almost nothing, and to be as non-existing as can be achieved.
Democracy always must lead to socialism and planned economy and bureaucratic totalitarianism. The opposite to democracy - is freedom.