Sunday 15 November 2009

It makes no sense to value paper currency

The value to people of most tradeable items is obvious: drink quenches a thirst, food satisfies a hunger. Paper money, however, does neither of those things and neither does it perform any useful task. It cannot be redeemed for anything of value, unlike in the past when it was redeemable for (and representative of) gold.

When people wake up from the delusion of valuing bits of colourful paper, they will return to trading items of actual value.

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