The Failure of Fiat Currency
With history being the best indicator of the future, America is primed for another currency collapse.
We are facing a debt as out-of-control as Weimar Germany while the government keeps the printing presses busy. At this time, China and Russia are supporting their respective currencies with gold. In addition, both countries are using a new money transfer system, CIPS (China International Payment System), to replace the western SWIFT (Society for Worldwide Interbank Financial Telecommunication) system.
Source: Zero Hedge - Failure of Fiat Currency
Read the whole article sourced above :)
If you're not familiar with ZERO HEDGE and writer, Tyler Durden....You're welcome - he's a real beauty of a journalist!
The deeper Reflection here...
We've been using corrupt systems for a long time...
Reflects the corruption in the human psychology.
We need to create systems that prevent the "option/choice" for corruption.
Is Blockchain and cryptocurrency a way to bring transparency and accounting to the world....a way in which we can prevent the evil nature of humans?
Will capitalism replace government? Can we self-govern with better results?
Interesting times upon us as the corruption...the accumulation is compressing so much...it really reflects the mind and the body merging together as one.
The future, I think has a lot to do with how we as individuals process all of our realizations...and how much we share our insights with each other.
I think we could restructure the world in a very capitalistic way that is to a better benefit of the majority of participants here today.....with the existing cryptocurrency structures we have in place. Granted this is still very much the infancy and early adopter phase.
Will you push forth narratives in your peer environments about money and cryptocurrency?
The best form of advertising has always been "word of mouth".
Crypto is like the ultimate form of 'multi level marketing' - it's kind of cool.
Remember,
- Never put in what you fear losing. Whether it is fiat, metals or crypto - make sure to take care of yourself.
CHEERS TO A PROSPEROUS 2018
this is all true but I feel like capitalism already replaced government. I believe it happened right around 1890 with the rise of the Robber Barons. It was complete by the time the Spanish American War was over. The problem is that the government will strike back hard at crypto and there will be a period of struggle. I hope for the best but control of the currency is what allows nations to have a military. To much money in the hands of the people and they lose that advantage and society crumbles. Perhaps the government will try to accumulate as much as possible . We'll see but I'm hoping that having steem is the right move for me .
You make some really good points.
The world is already a corporation.
Thank you for comment - you're challenging me to consider the viability of existing structures of government to be a part of the solution.
I've recognized that I've had a bit of a bias with regards to government(public) vs private(corporate)
Again, thank you - you've given me much to explore :)
While I think cryptocurrency does solve some very real problems; high transaction fees, cross border payments, etc. I'm not really sure it could cut governments out of the picture all together, there's just too much power on their side and the vast majority of individuals are going to obey the government, who will undoubtedly regulate crypto. Even if they did not, would pure capitalism really be the best course of action? If I look at the US healthcare problem, I would trace some of the price skyrockets to the fact the fact that many health insurance companies were allowed to become for profit entities and as such focused on profits over controlling prices for consumers. Curious if you would argue for complete government non-intervention when it comes to crypto and the economic vehicle that comes with it?
We need a balance. Capitalism without government leads to a super rich ruling glass, the death of the free market, and the end to personal liberties. Government without capitalism cannot fund all of the needs of society.
I'd most definitely agree with the comment. There is a middle ground that needs to be achieved, that middle ground should definitely lean towards the free market in most areas though.
you bring forth some interesting questions. There is indeed a dichotomy of sorts between government(public) and corporate(private).
Establishing a harmony is the challenge...In some ways I think this is the focal point...and heart creating an amicable world.
Cryptocurrency to me is basically a tool ...and a catalyst to stimulate the discussion on these matters.
Thanks for sharing perspective here
Agree with you 100%. Thanks for the discussion!
Amazing post thank you for sharing
The USD fiat seems to be falling very fast against cryptos.
fiat currency has to die one day there is no use left the world is demanding a revolution
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That is actually false. If anything, the government is poised to begin "un-printing" money, so to speak. I think cryptocurrencies are far superior to fiat but we should be accurate when making our arguments.
mmm can you elaborate your statements?
The US government is able to "print money" by buying corporate bonds with money that it doesn't have. They do this to stimulate the flow of money when there isn't enough. Too much, and it can cause inflation. However, if they need to slow inflation, they can restrict the flow of money by calling in this debt at any time.
The amount of debt the hold has increased from about $800B in 2007 to $4.5T in 2014. That number is now roughly the same at $4.4T, but that means that the Fed essentially unprinted $100B in the last few years. Now that the economy is starting to ramp up the Fed is considering entering a phase where it buys back even more.
The Fed has powerful and sensible economic tools to steer the economy and it has done a very good job over the past 40 years of stimulating the economy while keeping inflation reasonable. However, the hyper inflation of the 1970's shows what the Fed can do if it is not run well. That is why I trust the coded logic that governs cryptocurrencies more than the skills of individuals. We shouldn't leave something as important as money up to the discretion of a small group of people.
When you write, "Fed" are you referring to "Federal Government" or "Federal Reserve". You know there not the same thing right?
Many people assume the Federal Reserve is part of the Federal Government....this is false...
Yes, I did know that. Your own quote states "...while the government keeps the printing presses busy". I thought that I would talk about the topic at the same level as your were presenting it instead of being pedantic about nuances that aren't pertinent to the discussion. Also, "Fed" always means "Federal Reserve".
crypto is really cool from that perspective
So true my friend, my fear is the way they have rebuilt our food supply infrastructure. When the dollar finally collapses it will be a truly dangerous situation. I really hope we can come together and replace the state, but i can't help feeling a little skeptical considering the current climate. Thanks for the post, great as always.
food supply infrastructure is a very important point - thanks for making mention of it.
You've challenged and encouraged me to look more closely at 'food supply infrastructure'.
I think it's totally possible to improve upon the distribution of food throughout planet earth.
I wonder how we could back steem with Gold and not in fiat.
Steem isn't backed by anything. Its value, like the value of nearly everything, is completely arbitrary.
This word arbitrary... I don't think it means what you think it means.
It is entirely possible that I misused the word. I sometimes use words that, I realize too late, mean something different. However, this is not one of those cases. The primary definition of "arbitrary" is:
If, by a whim, everyone dumps their Steem, simply because they feel like it on that day, the price plummets and it is worthless. If the some top retirement executive, because he is feeling a little risky on a particular day, decides to include Steem in its multi-billion-dollar portfolio then the price will skyrocket. There is no rationale or logical system for determining price. The price for any thing is the amount people are willing to pay for that thing.
I think your statement is completely right. Although it is incorrect, or at the very least, incomplete; you have rightly constructed your case and expressed meaning using the elements presented.
However...
If there is an "If" within the argument supplied then it is contingent on limited operators. I would have to agree that the set of elements proposed are valid, AND, deterministic of said argument, to agree you are correct. Only one of these premises are active in your commentary. The elements are valid. Do they completely determine the relationship between arbitrary and currency tokens? No.
If this were chess, you staked your case on a Check, not a Checkmate.
Currency is an extension of human interaction(this is the system); a form of communication. I develop currency with every single person I know, this eases portions of our relationship where services are rendered, whether that is facilitated by use of Fiat Currency, or barter, or graciousness; the token of currency depends on the type of relationship we have. The token communicated is not arbitrary because it has meaning to both parties.
Try this, on a whim, next time you go out to eat, tell the wait staff this when it comes time to pay the bill: "Paper money is arbitrary. I'll give you, instead, Three hugs, 2 high fives, I'll bus and clean my own plates, I'll write a positive review online, and I promise to never eat here again." See if they go for this arbitrary list of services in exchange.
I agree the physical attributes of the token of exchange are more or less arbitrary. Whether it's metal, wood, wool, whatever, this is indeed arbitrary. But the service it plays in social lubrication is most definitely not arbitrary. Currency is an extension of myriad systems of communication we each employ individualistically to allow for relatively positive human interactions; or at the very least equitable.
For example, Ask a stranger to get you a soda. Ask a friend. Ask your mother. Any of these exchanges in communication going to result in you getting a soda without having to confer arbitrary tokens of fiat currency? Could it be you already established a token of currency, with at least your mother, whereby the resulting action of this line of communication conferred what you asked for?
Arbitrary DEPENDS on their being NO system or reasoning influencing the result.
Hell, there is arbitrary guessing and educated guessing, which is NOT ARBITRARY, even though it still is just a guess. See the difference?
There is always a reason, even if that reason is to be completely arbitrary.
Thank you for responding to my reply. Incidentally, my comment was intended to be a light hearted reference to the movie "The Princess Bride".
I see your point. However, I have paid a different price from sticker on many occasions. I didn't exchange for kisses and hugs but I have barters. I've even received free service for good reviews! One of my favorites: I was about to buy a vacation on Groupon for several hundred dollars. It was well below market price and I was happy to pay it. Then I saw the "chat" feature. I messaged "I want to buy this vacation, but it is pretty expensive. Can you help me out?". Without further prompting they gave me $20 off. Was the price of that vacation what people paid through the hotel's website, what people paid on Groupon, or what I paid on Groupon? Or is it arbitrary? 😉