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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (62088)	3/19/2010 9:50:37 AM
From: RJA_	Read Replies (1) \| Respond to of 218074

>>That because money is a proxy for goods that are traded with it. You are describing the transaction function... happening in a time slice. Confidence (shared illusion) is more easily maintained over the short term however there are exceptions -- see Iceland. Everyone else accepts it as value X, therefore so will I. Long term guarantees are not provided (store of value function), and in fact are abrogated (as any study of monetary history and values shows) in the absence of a gold or other physical standard. Interestingly, in present day central banking practice, the money supply is expanded at 2% minimum (to avoid deflation)... The store of value function depends on government management and government metrics... "Full faith and credit."