Quote:
|
Paper money is DIRECTLY related to the governement that issues it. This is basic economic theory.
|
I agree. It is directly RELATED. If you want to talk economics, we can talk economics, but you don't have to have had an econ class to tell me what you're telling me.
Quote:
|
Seriously, take out any denomination bill and look at it. Really look. It's just a piece of fancy paper. The value in it lies in the fact that you can give it to someone and they'll give you something you want in return.
|
And you make my point! It's fiat money. The paper itself has little inherent value and no utility. Its value is actually derived from two things. One, it's scarcity, meaning the supply is more or less controlled (which is where the government comes in). Two, people will accept it as payment. It doesn't have value by decree. If the government didn't issue dollars, we would just use pounds or euros.
I stand by my prior statement, as I don't think your "basic economic theory" has done anything at all to contradict it.
Quote:
|
And on a side note, money's worth isn't directly derived from the government, though the government does control its quantity. Money will continue to buy stuff as long as it remains scarce. If the government disappears, money will only lose value when it becomes widely counterfeited. Then again, it might not take long for that to happen.
|