Originally Posted by watermock
You can only repeat this so many times Baja.
A fiat currency is only as strong as it's economy and debt, and of course, M1, the supply.
Look, there are petrodollars. Ever hear of them? They out number Gold 100/1 or whatever.
Going to run around with a barrel of crude on a mule? Talk about worthless.
There is no real problen with a fiat currency, as long as it has a backing of economy and the promise that the supply won't grow exponentially.
What you WANT is for the money to exchange fast, this is called the multiplier effect.
I there is no faith in the value, people will try to pawn it off as fAST AS POSSIBLE.
This is simple economy 101.
I understand all this Mock, it is exactly the reason the dollar (being tied to oil) has been kept afloat at current values.