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> Both cash and securities are regulated in a way that ties them to the creation or storage of (real-world) value. Did we go back to the gold standard during t

> Both cash and securities are regulated in a way that ties them to the creation or storage of (real-world) value. Did we go back to the gold standard during the writing of this comment? Last time I checked there wasn't any backing of fabricating new dollars except for the sheer trust in the US government.

ffhhttt 3y ago
The ability of the US government to tax any companies or individuals residing in the US seems pretty “real” (more-so than gold anyway..)
- sshine 3y ago
  Let’s keep it at “real” with the quotation marks. Gold tends to last longer than your average nation state. This is not a problem when the promises of a nation state only need to last as long as the nation state itself.
  - ffhhttt 3y ago
    > Gold tends to last longer than your average nation state. I’m not sure how that’s useful. The capability to produce goods and services seems a whole lot more real to me in terms of value than gold (the value of which would collapse anyway if modern economy did). In theory can have currencies directly backed by oil, wheat or copper if you don’t want fiat for some reason. Would still be more ”real” than gold. > only need to last as long as the nation state itself. 1$ from the 50s is not worth much in the 80s and even less today. Seems like that should be a much bigger concern than the longevity of the state itself.
    - sshine 3y ago
      > In theory can have currencies directly backed by oil, wheat or copper That is to some degree what USD is ("Petrodollars"): https://www.investopedia.com/articles/forex/072915/how-petrodollars-affect-us-dollar.asp https://www.investopedia.com/articles/forex/072915/how-petro...
      - ffhhttt 3y ago
        You can’t redeem them for a fixed amount of oil so I would say this is quite different.
CPLX 3y ago
> there wasn't any backing of fabricating new dollars Wow that’s compelling. > except for the sheer trust in the US government Oh, you mean “except for” the single most powerful entity on planet earth
himinlomax 3y ago
You need only to trust that the US government has 11 aircraft carriers and thousands of nukes.

ffhhttt 3y ago

The ability of the US government to tax any companies or individuals residing in the US seems pretty “real” (more-so than gold anyway..)

sshine 3y ago
Let’s keep it at “real” with the quotation marks. Gold tends to last longer than your average nation state. This is not a problem when the promises of a nation state only need to last as long as the nation state itself.
- ffhhttt 3y ago
  > Gold tends to last longer than your average nation state. I’m not sure how that’s useful. The capability to produce goods and services seems a whole lot more real to me in terms of value than gold (the value of which would collapse anyway if modern economy did). In theory can have currencies directly backed by oil, wheat or copper if you don’t want fiat for some reason. Would still be more ”real” than gold. > only need to last as long as the nation state itself. 1$ from the 50s is not worth much in the 80s and even less today. Seems like that should be a much bigger concern than the longevity of the state itself.
  - sshine 3y ago
    > In theory can have currencies directly backed by oil, wheat or copper That is to some degree what USD is ("Petrodollars"): https://www.investopedia.com/articles/forex/072915/how-petrodollars-affect-us-dollar.asp https://www.investopedia.com/articles/forex/072915/how-petro...
    - ffhhttt 3y ago
      You can’t redeem them for a fixed amount of oil so I would say this is quite different.

CPLX 3y ago

> there wasn't any backing of fabricating new dollars Wow that’s compelling. > except for the sheer trust in the US government Oh, you mean “except for” the single most powerful entity on planet earth

himinlomax 3y ago

You need only to trust that the US government has 11 aircraft carriers and thousands of nukes.