The Future of Money: None

[Skybird]

Originally Posted by Von Due

The devil's advocate is on the phone, asking if someone can give a technical description of the mechanisms that force a society to have, exclusively, iron fisted, oppressive and totallitarian goverments, like we have today in parts the world where they do have money?

Please think a minute about the differences between coincidence, correlation and causality. That are three very different things.

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Money is no tool of the devil to lead man on a wrong path. It is a ordinary commodity, it gets traded on the - hopefully free - market liek any other commodity. As an ordinary commocity like any other, it has a value, a price that market participants negotiate over. Money is bought by you when you sell stuff of your own, money is sold by you when you buy stuff you want. It is in the end nothing else but bartering. Money allows you to store "bartering value" that you possess, you must not barter the milk for something you do not want immediately after you have milked the cow, you must no barter the fish immediately for something that you do not need, else it starts to smell. You barter your milk and fish for money - and barter your money later for somethign different, once the situation is in your favour. With money you can sell your stuff even if during this deal you do not get from the other what you want. You take what the others gives you (money), go to somebody else who has what you want (but who did not want the stuff you wanted to barter), and then buy stuff you indeed want from him. Without this simple possibility, complex production chains would be impossible. Imagine what that would mean for building a civilization if nio complex trade chains and production would be possible!

Paper/FIAT money is no such commodity, and that is where the real problems come from, and that's why I say we do not even have a real money anymore - we have many people with illusions, that is the only reason why they give you material stuff and material value for your snippets of paper whose "value" get arbitrarily inflated and devalued by governments as they want it - to handle the immense debts they have managed to pile up high into the sky.

Once people understand this, you will see a massive bank rush, and collapse, and nobody will give you something of material value for your banknotes anymore. Banknotes without material securities backing them (every single one of them!) - are no money. They are fraud.

See Venezuela. Maduro too thought that money just can be printed and must not have material securities backing it - another brilliant smarthead in a long line of socialist brilliant smartheads all making the same mistakes over and over and over again. A money that is no commodity, has no material inherent value, and thus banknotes wihtout a material security backing every single one, are just notes of debt - again, without any securities backing them. Worthless gimcrack once the illusions have been busted. We have been there. Oh yeah, we have been there. Repeatedly. Globally, there have been 50 hyperinflations in the past 100 years, roughly. FIFTY HYPERINFLATIONS. Hyperinflation usually it is called when the MONTHLY inflation rate is above 50%.

So again: money is and needs to be an ordinary commodity, like any other. And it must be subject to market interactions, without interference by the state cartel. This is not understood, governments want to "control" it. And that is where all financial-economic evil of the present is coming from. A planned economy is similar to a planned economy - it just does not work. Prime example for a - failed again - planned money is the Euro, but this truith holds for ecery single paper money there ever has been since the Chinese tried it first in the 12th century: 30 years later that Chinese kingdom had a collapsed economy, and was almost destroyed by civil war and famine.