Message:

<p>[QUOTE=&quot;Cloudsweeper99, post: 1248760, member: 3011&quot;]China used fiat currency for most of the period between 1000 and 1450, but perhaps there are experts here on the history of China with more information.&nbsp; There is no inherent flaw in a fiat system.&nbsp; The flaw is in human nature.&nbsp; What you are missing is that the dollars in existence are a tiny fraction of the economic wealth measured by them.&nbsp; When a company repays an interest bearing bond, they don&#039;t use Federal Reserve Notes.&nbsp; It is an economic transfer of wealth electronically between borrower and lender.&nbsp; The lender most likely doesn&#039;t ask for paper money, but puts the wealth back to work in other bonds, stocks, etc...&nbsp;&nbsp; The point you miss is that the dollar represented by a Federal Reserve Note is a scorekeeping device.&nbsp; The vast majority of economic activities in the economy today do not involve actual currency.&nbsp; Banks order currency from the local Federal Reserve Bank, and return it to them based on local supply and demand.</p><p><br /></p><p>If there was a static amount of wealth in the world, you might be correct.&nbsp; But as long as there is a growing amount of wealth in the world, your scenario is irrelevant.[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in