I thought it was important a subject to deserve a new thread . so heare we go ...
what ever gold there is ' is enough to peg to , not to use as coinage and using only fiat money is more the reason for spending tons of money to extract gold because it is ever increasing in value compared to fiat money
and make no mistake about it the current situation is unattainable there is still no agreement on how to limit or regulate the real value of fiat money , and no body is willing to peg his currency to fixed or relative value to his GDP ; rather every one is pegging to the US dollar ; no matter how much the US print or create fiat money out of the thin air. they do that just to have same advantage of such creation of money . they will continue to do so until a total collapse happens or WTO is finally abandoned and governments get on a handle over the economy by the old system of tariffs .then fiat money will work for some and pegging will lose it's advantage
- this is my brain storming about the subject . feel free to defer , I might be persuaded to change my mind .
it is not that simple ! . pigging currency to non non degradable metal like gold is more stabler and guaranteed value and less prune to inflation compared to fiat money which is more often is used to rub people .but that doesn't mean there is no place for fiat money .at all .
what ever gold there is ' is enough to peg to , not to use as coinage and using only fiat money is more the reason for spending tons of money to extract gold because it is ever increasing in value compared to fiat money
fiat money defer from country to country and according to there economical and political situation .
and make no mistake about it the current situation is unattainable there is still no agreement on how to limit or regulate the real value of fiat money , and no body is willing to peg his currency to fixed or relative value to his GDP ; rather every one is pegging to the US dollar ; no matter how much the US print or create fiat money out of the thin air. they do that just to have same advantage of such creation of money . they will continue to do so until a total collapse happens or WTO is finally abandoned and governments get on a handle over the economy by the old system of tariffs .then fiat money will work for some and pegging will lose it's advantage
- this is my brain storming about the subject . feel free to defer , I might be persuaded to change my mind .
