My point was to show you the relationship between power and money.
Money that is not backed by power has no value.
Money isn't a thing with real value unless a social contract gives it value.
And my other point was to show you that the so called DEBT that so many of you care about, is largely bullshit.
How can we be in debt when the people who supposedly LENT us the money, didn't have that money to begin with?
They had the power (by social contract) to INVENT the money based on our promise to pay it back.
This system is unsustainable and our so called debts are basically delusional.
The fact is that inflating the money supply devalues the currency which is essentially an indirect tax. You're not losing an actual amount of dollars, but you're still losing an actual amount of wealth.
Yeah yeah, I understand all that.
You're missing mypoint...the money itself is a tool, one that only has value because of the POWER to give it value.
As far as gold goes, it has a value because people value it.
EXACTLY like money.
If we were on a true gold standard then the only inflation we would have is when the money supply is increased due to an increase in gold reserves which would mean that the currency is not being devalued.
True.
Of course, then we'd have continuous deflation, assuming that the amount of good and services continued to increase compared to the amount of gold.
The gold standard will not solve the problems we're facing, Chum.
I wish it were that simple, but honestly, it's not.