Message from @RoflTank
Discord ID: 527253248113901618
Not realistically
No, not always. I mean specifically in cases like Weimar Germany.
Every economy going back on the gold standard has an economic crash.
This happened all across the world after WW2.
I wonder why, going from debt treadmill fiats to actual money with value
It's because sovereign fiat is far superior for a good economy
So what's the value of a fiat.
What is the actual value
How much does cotton paper and ink cost?
It's like the penny costing more money to mint than it's worth because reasons
The value in fiat comes from the state. It's what the state does business in, and it's what the state demands in taxes.
What is the value
What is the actual value
What is the actual value of gold?
How much?
Let's say 1 ounce
Also, the worth of material currencies is set by the fact it's literally worth a fixed amount of X, not as some algorithmic abstraction of state power and enforced value.
State power isn't an abstraction
It absolutely is
Don't pay your taxes and see how abstract it really is.
What gives it the X value? How is the worth of the material calculated, I think is the question, at least the one I have
To be clear I'm not on one side or the other I just want to clarify
Worth is subjective, obviously. Lets say for instance that 1 ounce is 1 gold note. the worth of the gold is then, obviously, based on fractions or multiples of the base unit.
So the worth of a given weight of X is then basic division
Gold is no less subjective than fiat.
How would we deicide how much of X is worth how much of currency in the first place?
Fiat has no logical basic unit
You just decide X is 1 monies.
Yeah, gold's value is subjective as well.
Benis, you consistently drink the retard juice
So you arbitrarily decide the initial unit and extrapolate from there?
The point of gold-backing is not the value of gold itself, it's the basing of a economy on physical goods
Rather than paying debt bonds for physical goods
Which is retarded because then there's not enough money supply
The government spends the money before selling debt bonds.
The government has no money, they pay in debt bonds
Debt bonds are only there to drain excess reserve.
A federal reserve note is literally a unit of debt
I know.
Because the government has to take out a loan of reserve notes from the central bank, then pay off that loan with a new loan