That’s not how money works. Fiat currency is just IOU’s, literally, which are discharged when the promissory note returns to its originator (in the case of dollars, the US treasury). Check out Debt the First 5000 Years for an anthropological look at the origins of money.
Whereas I would prefer to live in a moneyless (i.e., debtless) post-scarcity anarchist society, which is how small tribes and communities were organized for tens of thousands of years before the rise of nations, fiat currencies are used to maintain the modern (unimaginably huge) marketplace, whose ostensible purpose is to allocate scarce resources.
Personal debt is risky. If I issue an IOU, I might die before I can fulfill that promise. Governments are more permanent, which removes the speculative aspect of currency (at least for most purposes, though Forex trading is a thing).
A central bank can balance inflation and employment numbers to ameliorate the natural volatility of the market (with good regulation lol).
Fiat currency can be synchronized with economic productivity, avoiding the deflationary pressure that is anathema to any currency.
Dollars represent faith in the power of the US government to extract taxes from its population.
Crypto represents nothing. It stands for nothing. “Coins” come and go, and if you’re the last one standing in the zero-sum game of musical chairs, you lose your savings. For that to happen with dollars, the US government would have to implode, which is unlikely.
Crypto is, quite possibly, the purest form of speculative trading (gambling) we have ever concocted. The only reason I don’t think it should be illegal is that I have no interest in saving people from their own cupidity and greed.
You’re absolutely right, and I have no idea. Maybe wait another 100,000 years for the 30% of humanity that lacks abstract moral reasoning to exit the gene pool.
The thing is… the market disagrees with you. For now. But hey, put your money where your mouth is! I’ll give you a hundred rubles for a hundred dollars. If you really think the US government is impotent and on the verge of collapse…
So you don’t even know how the bond market and the dollar are related, and you attack my personality when I show your argument is wrong, which you don’t understand because you don’t understand the bond market.
That’s not how money works. Fiat currency is just IOU’s, literally, which are discharged when the promissory note returns to its originator (in the case of dollars, the US treasury). Check out Debt the First 5000 Years for an anthropological look at the origins of money.
Whereas I would prefer to live in a moneyless (i.e., debtless) post-scarcity anarchist society, which is how small tribes and communities were organized for tens of thousands of years before the rise of nations, fiat currencies are used to maintain the modern (unimaginably huge) marketplace, whose ostensible purpose is to allocate scarce resources.
Dollars represent faith in the power of the US government to extract taxes from its population. Crypto represents nothing. It stands for nothing. “Coins” come and go, and if you’re the last one standing in the zero-sum game of musical chairs, you lose your savings. For that to happen with dollars, the US government would have to implode, which is unlikely.
Crypto is, quite possibly, the purest form of speculative trading (gambling) we have ever concocted. The only reason I don’t think it should be illegal is that I have no interest in saving people from their own cupidity and greed.
Graeber’s book (Debt: The First 5000 Years) is so, so good.
For a large portion of time in those small anarchist communities, they’d raid and kill each other.
How would we prevent that?
You’re absolutely right, and I have no idea. Maybe wait another 100,000 years for the 30% of humanity that lacks abstract moral reasoning to exit the gene pool.
I’m convinced the reason we have so much government is to control that portion. And it’s not even doing that good of a job.
Exactly. Now they’ve metastasized into our government. Fucking orcs.
Lol, the debt will never be repaid with taxes.
That’s not the point. The US has the power to extract rents; it doesn’t have to use it.
You live in fantasy land if you think the US has that power, any government that tries this would be overthrown.
The thing is… the market disagrees with you. For now. But hey, put your money where your mouth is! I’ll give you a hundred rubles for a hundred dollars. If you really think the US government is impotent and on the verge of collapse…
Haha, which market disagrees? The bond market, the gold market, the bitcoin market, the housing market?
Since we are discussing dollars and not houses, that would be the FOREX market. The dollar is very strong at the moment.
So you don’t even know how the bond market and the dollar are related, and you attack my personality when I show your argument is wrong, which you don’t understand because you don’t understand the bond market.
FOREX is explicitly the market that compares the strength of competing currencies.
I’m aware of how the bond market works. What is your problem with the bond market?