View Single Post
Old 11-12-2009, 06:47 PM   #71
baja's Avatar
"Win from now on" - Elway

Join Date: Apr 2001
Location: in the present moment
Posts: 69,057


Originally Posted by watermock View Post
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.
baja is offline   Reply With Quote