CB, I agree that <<essential functions of money are to be a medium of exchange and a store of value>>;
<< econ.ucla.edu >> ... I thank you for the link to "A quick History of Money". I downloaded and printed it, to savor after lunch with friends.
On <<US money is "backed money" not fiat money ... based in large part on the arguments contained in the linked paper ... csun.edu >> ... which states "modern paper currencies, which we normally think of as unbacked fiat money, are actually backed by the assets of the central bank",
... I (a) do not trust central banks, their political masters, whether a king, or a mob, or anybody in between, (b) like the gold in central banks, but not the printing presses, xerox machines, and most of the time, their managers, and (c) feel it a good idea to hold some real assets, especially the residence we live in, and something else that is divisible, fungible, and portable :0)
The French fiat money started out as 'backed money', and was backed by the confiscated real estates of the Catholic Church, until it wasn't backed, by the same crowd that stole the land from the Church in the first place, ultimately answerable to the street mob, and then the mob revolted ... more confiscation, redistribution, inflation, evaporation, depression, ... leading on to yet another round of repudiation ... just a bad scene all around.
This is the normal for the world.
I now watch California in fascination, and wait anxiously for the eventual outcome that can only be, I guess, repudiation.
Chugs, Jay |
