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FIAT money - could it really happen/ has it happened?
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<p>[QUOTE="Sullysullinburg, post: 2373795, member: 73996"]You seemed to have skipped a few history classes. To start after the New Deal was signed the U.S. Saw one of the greatest periods of economic growth ever. Inflation is a naturally occurring thing that will happen in any society that uses a currency. But let's pretend we're in you paradise. There is not enough gold in the world to allow every dollar to be backed by it. Not to mention that the U.S. Would have to go through multiple revaluations each time the gold market shifted. What in the world is wall-paper money? Fiat money is just money that is backed by trust. If I trust the government and you trust the government then the U.S. Dollar has value. If you don't then you might want to think about moving because I don't know anyone who would accept 1/20th of a gram of gold for your coffee.[/QUOTE]</p><p><br /></p>
[QUOTE="Sullysullinburg, post: 2373795, member: 73996"]You seemed to have skipped a few history classes. To start after the New Deal was signed the U.S. Saw one of the greatest periods of economic growth ever. Inflation is a naturally occurring thing that will happen in any society that uses a currency. But let's pretend we're in you paradise. There is not enough gold in the world to allow every dollar to be backed by it. Not to mention that the U.S. Would have to go through multiple revaluations each time the gold market shifted. What in the world is wall-paper money? Fiat money is just money that is backed by trust. If I trust the government and you trust the government then the U.S. Dollar has value. If you don't then you might want to think about moving because I don't know anyone who would accept 1/20th of a gram of gold for your coffee.[/QUOTE]
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