<What, as opposed to paper with faces of old dead guys on it???? Hell, you work all day for that?>
DAK, I was talking about the production cost of the means of exchange. The paper of the same value as an ounce of gold costs about 20c to produce [give or take 18c].
But as you say, the paper with the "In God We Trust" slogan and the dead guys' pictures isn't all that trustworthy. I'd rather trust the productive, creative, imaginative efforts of companies inventing the future, whose paper costs near zero to produce [especially if it's in pixelated form in cyberspace] and whose products and services are wanted by 6 billion people.
Money is just another service and as with all services, the production cost needs to be low to compete. Shares and cyberspace can lower the cost of money production from gold, while providing a real foundation in value which is not behind Uncle Al's money.
Gold costs a fortune to produce and is defective in all sorts of ways as money. Uncle Al's promise and mystical, superstitious incantation [which he doesn't believe himself] "In God We Trust" is also defective in all sorts of ways [the most important is that there is nothing holding it up except hope]. The Q is real, supported by 6 billion people, transactable, secure, instantaneous, costs nothing to produce or transact [near zero anyway], has permanent value [while there are humans], the owners of the Q own the money [instead of Uncle Al] and they gain the profits of control.
There's no competition. People are working all day for QUALCOMM and to buy QUALCOMM's products. 6 billion of them.
Mqurice |
