E-money is the ultimate form of Fiat if you ask me. All fiat has a history of corruption and collapse (the american dollar and other world currencies are heading that way as well). Fiat money is the money of the statist, since it allows those in charge of the press to create as much money as they need, while dilluting what the rest of us hold.
The question isn't "what form will money be in", the question should be "what assets will back our money". I don't care if its in the form of rice crispies, as long as it is backed by an asset (gold, food, land, space rocks) and has real value.
All fiat has a history of corruption and collapse (the american dollar and other world currencies are heading that way as well).
Could you explain that concept? Seriously? If the US had not gone to fiat money in the 70s, then the exchange rates on the market would probably have killed the economy entirely instead of simply causing a recession. There were too many dollars compared to how much gold we had in the Reserve, and the gold stock we had was draining fast. Our money supply simply could not grow at the rate that the economy was growing. Fiat money was the only logical solution, and we are hardly alone in that endeavor. The Euro is fiat, as were the Deutschmark and the franc before it. (Honestly don't remember whether the pound is still backed, but I do not think it is.) Japan, too, was a fiat currency, and not fixed to anything. All of those countries did fine.
The only times that fiat money has been a problem, in general, is in third-world countries, and fixing the currencies against the dollar (Argentina) or going to a dollar economy (Ecuador) doesn't seem to have helped them much anyway. Printing money with the purpose of "diluting" cash (raising the real rate of inflation) is not inherently evil, either; in fact, a large number of economists are currently arguing that the Japanese need to print a whole lot of money, intentionally generating inflation and therefore discouraging savings, in order to revitalize their economy and end their ten-year-long recession/depression. (I.e., if your savings start being worth less, then you will have an incentive to spend, which would probably help end Japan's deflation and revitalize the economy. The other thing that's killing them is subsidizing companies that really should be allowed to die, but that's another issue entirely.)
If you're that wrapped up about having your money backed, rent a space in a vault and convert all your money to gold. It's gone up recenty anyway in the uncertainties of the war, and likely will continue to do so until this situation has blown over, so it's probably a decent investment. No one's stopping you. But for the rest of the world, I think fiat courrency is fine.
The only times that fiat money has been a problem, in general, is in third-world countries...
I think the people of Russia, Germany, Yugoslavia and the Roman Empire might disagree with you there. I don't think those empires would have appreciated being called "third world".
They were empires, not third worlds. That's like saying because the US is in a mature phase of its lifecycle that it is a third world. The Roman Empire certainly wasn't a third world.
What is BEHIND that money... that is the question. (Score:5, Interesting)
E-money is the ultimate form of Fiat if you ask me. All fiat has a history of corruption and collapse (the american dollar and other world currencies are heading that way as well). Fiat money is the money of the statist, since it allows those in charge of the press to create as much money as they need, while dilluting what the rest of us hold.
The question isn't "what form will money be in", the question should be "what assets will back our money". I don't care if its in the form of rice crispies, as long as it is backed by an asset (gold, food, land, space rocks) and has real value.
Re:What is BEHIND that money... that is the questi (Score:2)
The only times that fiat money has been a problem, in general, is in third-world countries, and fixing the currencies against the dollar (Argentina) or going to a dollar economy (Ecuador) doesn't seem to have helped them much anyway. Printing money with the purpose of "diluting" cash (raising the real rate of inflation) is not inherently evil, either; in fact, a large number of economists are currently arguing that the Japanese need to print a whole lot of money, intentionally generating inflation and therefore discouraging savings, in order to revitalize their economy and end their ten-year-long recession/depression. (I.e., if your savings start being worth less, then you will have an incentive to spend, which would probably help end Japan's deflation and revitalize the economy. The other thing that's killing them is subsidizing companies that really should be allowed to die, but that's another issue entirely.)
If you're that wrapped up about having your money backed, rent a space in a vault and convert all your money to gold. It's gone up recenty anyway in the uncertainties of the war, and likely will continue to do so until this situation has blown over, so it's probably a decent investment. No one's stopping you. But for the rest of the world, I think fiat courrency is fine.
Re:What is BEHIND that money... that is the questi (Score:1)
if the shoe fits (Score:0)
Re:if the shoe fits (Score:1)