CB, yes, the monetary system run by governments is based on trust. But not a very high level of trust. They are based more on repression than trust. It is illegal to use other than the state-issue fiat currency. Most people are well aware of the effects of inflation, meaning monetary dilution and the best example of it was the reissue of NZ coins a year or two ago with the same designs, but shrunken to Lilliputian size to match their value.
Once upon a time, a man worked an hour for a shilling. Now, it's the smallest unit of currency, when a man earns $20 an hour. A shilling became 10c in 1967. So, in my time, inflation has been a factor of 200 and in my adulthood since 1967 a factor of about 40. In 1967, $1 an hour was very good pay. Now, $40 an hour is very good pay.
Savers have been robbed of that much money. After tax and after inflation, savers have lost a LOT of ground if they just kept their money in the bank.
However, there is hope. I am in the process of inventing a replacement fiat currency for everyone to use and this one will be highly trustworthy.
The fiat currencies have been the world's biggest rort. The producers of the currencies have been able to line their pockets to the tune of $10 trillion or so [more than that I think as I haven't done precise sums - maybe that was just for US$ production]. Anyone who trusts those people is a fool.
The producers have ridden history's biggest population boom [meaning a LOT more money could be produced without causing inflation] and history's biggest productivity boom due to the Biotelecosmictechdot.com and industrial revolutions during the 20th century. They have captured a hefty slice of the profits due to the need for everyone to use the state-issued currencies.
The world's monetary system is going to be replaced by Mq's amazing Qi fiat currency which is under construction. It will NOT be replaced with gold which is an absurd anachronism destined to have value as jewelry and other such applications. Just as there are still farriers and people who ride horses, going on fox hunts and the like, there will still be gold hoarder hobbyists.
Mqurice |
