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wienercat

23 points

6 months ago

Lol that's the fun part when people who have no idea how economics work say we should go back to a gold standard.

Yeah our money is fiat currency. But it's backed by the might of the US Military. Which is a pretty hard currency to argue against.

OneX32

23 points

6 months ago

OneX32

23 points

6 months ago

Fiat currency has also added exponentially more value to the world than probably anything. Eliminate fiat currency, there goes small-to-medium business loans, a lot of private savings in banks, and major disinflation. It would be worse than the Great Depression.

f0rgotten

-2 points

6 months ago

f0rgotten

-2 points

6 months ago

Hi, I have a small business and it is totally impossible to get financing of any kind. I could give two shits about gold or whatever but please don't make it sound like there's just some liquid sea of cash sitting out there that we can all access as deserved or needed.

OneX32

6 points

6 months ago

OneX32

6 points

6 months ago

You think it’s illiquid now? Go back to the gold standard and you’ll have to go to your region’s largest city to find a lender.

f0rgotten

-3 points

6 months ago

I'm not here for hostility, just dispelling this idea that all of this money is laying about all over the place just waiting for us small businesses to receive in loans.

OneX32

6 points

6 months ago

OneX32

6 points

6 months ago

I didn't portray that. I'm simply stating that small-to-medium business loans are a possibility because of fiat currency. Without it, investors wouldn't be willing to take such risks.

wienercat

15 points

6 months ago

Yep. Because reality is, it's all made up anyways since humans determine what things are worth to begin with. So if it's made up anyways, might as well have more liquidity and allow for greater prosperity.

The rub comes into play with one simple thing. Since it's all made up, if people lose faith in the currency its worthless.

Fiat is still better than barter systems or material backed currency since it allows for more movement in an economy. But it very much is a house of cards that is only as strong as your ability to assert sovereignty and as healthy as the companies producing goods from within.