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

To: bart13 who wrote (109387)12/30/2014 10:07:39 PM
From: Metacomet  Read Replies (2) | Respond to of 218070
 
I suppose the primary issue is that fiat is a piss poor store of value

..but I'm not sure if that is all bad

The concept of money was to facilitate trade, a paradigm shift from a barter economy

..as such it might properly be viewed as a technological change

The problem of value retention probably was not a primary concern as folks were simply looking for a way to get a loaf of bread without say, a wheelbarrow full of gravel

To expect the value of trading specie to stay constant in your mattress is asking too much, bread goes up, gravel goes down....

You need to buy gold or real estate with your currency

It remains constant for what it is, trade lubricant

..you have to buy something else to hold value..or rely on the interest rate setters



To: bart13 who wrote (109387)12/31/2014 2:37:41 AM
From: clochard  Read Replies (1) | Respond to of 218070
 
Property, stocks, and precious metals are used as an alternative to fiat money. Fair value of any currency is seen only in relation to other currencies and universal fungibility is not possible. Piles of copper bars are used in China as a store of value due to its industrial uses and maybe doubt in the yuan. Governments don't want currencies to be used as a store of value because it is seen as counterproductive to employment and tax revenue generation.


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