John, I am going to have a breather before the meat of your post. The sizzle without the steak. What sort of shoes are they by the way?
I admit to laziness and the hope that people like you [and Jay] will rescue me from carelessness and ignorance. So thanks for your fiat comments.
Okay, Q is a fiat currency. Just another stock index [albeit cyberspaced, encoded, divisible and fast]. Yes, it's only trust that the rotten management wouldn't print themselves a bunch of stock or otherwise run it into the ground. As a micro shareholder, my escape would be to sell and use another currency.
But as Uncle Al shows, a good and careful management can create huge confidence if the temptation to greedy printing and dilution of existing holders is restrained.
Since the US$ is at the whim of the USA electorate [the J6P monkey], it's very trusting of aliens to depend on their generosity, when they bloody well go on year in year out printing themselves a swag more loot at our expense. The loot is spent to benefit USA citizens and management, not we aliens.
Okay, I'll have a breather in a minute...
Yes, they are all fiat, but at least the index fund does actually own a real producing asset which people value. Uncle Green$pan's asset is the control of the printing press and the full faith and trust of the aliens of the world that he and his political buddies will continue to do the right thing.
Index funds seem a much more solid bet to me. Thousands of large companies won't go bust overnight. They are less likely to go bust than the US$ is to be beaten in currency wars. It doesn't matter how the US$ is beaten, if one holds it, it's bad news. So, it's better to be first out than last and better to be the creator of the winning currency than the holder of the failed one.
Your technicolor dream is already around - there is on-line trading galore. People are increasingly cutting out the middle men. But a widely fungible means of exchange of stable value is attractive. There are sure to be many competitors. Come to think of it, Technicolor is a QUALCOMM company [in part anyway].
With Uncle Al's currency, the USA shareholders get the profits [indirectly by having a great country]. But we aliens don't share in that [other than indirectly, by the good care and protection of QUALCOMM which they provide - hmmm, okay, maybe we do share in that after all. I also like USS Enterprise sorting out Osama and Omar and Dostum].
Anyway, I think there's a market for a Q.
Yes, QUALCOMM has diluted shareholders a lot, but that was paying people to do a lot more than run a currency. I expect that the currency company dilution would be tiny by comparison. It shouldn't cost too much to run a currency. The current S&P P:E should do it and leave a big profit for shareholders of the Q index fund. Uncle Al does have great economies of scale though, so he might be hard to beat.
We could start by moving his money through cyberspace and work from there... PayPal perhaps...
Moving and storing money is a lot of fun and very profitable if done right.
Mqurice |
