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That's the point though. Without something actually tangibly valuable (IE gold), backing every paper dollar, there is no real value to the dollar anymore. There
by laythea 8y ago
That's the point though. Without something actually tangibly valuable (IE gold), backing every paper dollar, there is no real value to the dollar anymore. There is value, but its constructed value. And we all know what goes up must come down.
Don't forget, the dollar in your pocket is just a piece of paper.
EDIT: Yes, it is all a con job. One day we will realise.
- allemagne 8y agoYou are begging the question of gold (or anything, really) being "tangibly valuable" versus having "constructed value."
- laythea 8y agoFor something to have true value, it must be limited in supply and also people must have a common agreement that it is valuable. Money used to be like this before the Gold Standard was removed. When that happened, money lost its true value. Off course, money people could get creative then. Now the whole system relies on the population simply "believing" that fictional and unlimited entities (dollars) are valuable. Side Note: The reason why humanity has chosen gold to obsess over as an ultimate form of money, is not relevant to the fact that it has been, is, and always will be. See: https://www.marketwatch.com/story/why-china-and-russia-are-buying-so-much-gold-2016-08-01 https://www.marketwatch.com/story/why-china-and-russia-are-b..., for one of numerous reports of governments buying up as much gold as they can.