What should back currency? - Politics Forum.org | PoFo

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What should be used to back currency

Fiat
27
52%
Gold
10
19%
Silver
No votes
0%
Gold and Silver
2
4%
Barter System
2
4%
Other Commodity
3
6%
Other
8
15%
By Wolfman
#13179461
Simple enough question. Discuss.

Edit - Other: it doesn't matter as long as the backing of the currency remains at a constant on a non-static commodity. If all else fails, Fiat.
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By Dr House
#13179466
Fiat. The currency is ultimately backed by the export performance of the economy itself, and as long as the currency isn't inflated too far too fast a fiat currency is doable. Additionally, hard specie has industrial uses, so storing it as money is somewhat wasteful.
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By Le Rouge
#13179474
Like fasces said, optimally a system of energy accounting; realistically, the socially necessary labor-time required to produce a product.
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By Nets
#13179491
Fiat.
By QwertyKey
#13179510
You made me look up fiat.

Well, I haven't taken a class in economics, but let me try to apply logic to this...

Gold/Silver/Platinum/whatever else are limited supply, and easily susceptible to hoarding. Energy would be very hard to measure I think. How much energy is a potato worth? Since there are more calories in a potato than there are in a computer is the potato worth more? Unless I'm misinterpreting something, that doesn't sound reasonable at all. Barter is inefficient. Fiat sounds lame, and takes the value of money out of the hand of people and into the hands of government officials. However, it's the best way to do it I can think of.

I think ultimately, money is an evaluation of man-hours. Time equals money. However money can't really be backed in man-hours for a number of reasons.
By Wolfman
#13179514
Actually man hours backing money is kinda the idea behind the already mentioned 'energy backed currency'. For a better explaination find a Technocrat. Thats one of the things they base there views on.
User avatar
By Foxwood
#13179753
Other

Offer and demand....the system we are using now basically seems to be the one that fits best our global economy.
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By Noelnada
#13179762
A basket of commodities such as Crack cocaine weed.
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By Quercus Robur
#13179773
(not an economics person)

Ultimately fiat but based on the most rational system for its maximisation which I should think would be what corresponds most closely to a system that satisfied our needs most effectively. Wouldn't basing it on a commodity be a bit dangerous - what if we outgrew the commodity? Also our needs are not satisfied only by commodities and basing the whole system on one would push people into consuming more when they might be consuming more efficiently instead :(
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By ingliz
#13179825
Fiat
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By TropicalK
#13180052
wow, thats a a lot of "fiat"

I'd prefer currencies to compete against eachother.
Commodity backed by land, oil, timberland, coppermines, water rights, etc. Maybe even voteable for resource reallocation.
User avatar
By Cheesecake_Marmalade
#13180147
wow, thats a a lot of "fiat"

Actually no, I'd say that's a lot of people voting for the gold standard. It isn't as popular as you would think, being trapped in your mindset and all.
User avatar
By Stormsmith
#13180219
Quercus Robur wrote:(not an economics person)

Ultimately fiat but based on the most rational system for its maximisation which I should think would be what corresponds most closely to a system that satisfied our needs most effectively. Wouldn't basing it on a commodity be a bit dangerous - what if we outgrew the commodity? Also our needs are not satisfied only by commodities and basing the whole system on one would push people into consuming more when they might be consuming more efficiently instead :(


I gather that's what happened in 1971 - there wasn't enough gold to cover the amount of money in circulation. De Galle had been buying up gold, and for some reason, thought it would be cool to arse about with the international system. The Swiss immediately said they'd change to a silver standard, but most countries just chucked in the towel.

By today's standard, in order to use the gold standard, gold would have to be increased to about $4k/oz, I think

I'm not convinced fiat is the way to go. With what is it being backed? The ability to pay taxes/debt? The US is having some trouble in that area now, isn't it?

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