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Originally Posted by aceventura3
I think the basis of your argument as outlined in the above quote is flawed.
Our "fiat" money has value. The collective market place determines the value of our money. True the value fluctuates and historically there has been inflation, devaluing the dollars purchasing power for some goods and services, but inflation has been more than offset by productivity gains. Think about it 100 years ago, the average person would have worked 60 hours a week just for food, shelter, clothing, a few beers, and perhaps a horse. Today the average American works about 40 hours per week, gets three weeks vacation, has two cars, 4 TV's, 2,000 sq. ft. home, eats out twice a week, etc, etc,etc.
Productivity creates "money".
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The problem is that the market determins what the dollar is worth versus the euro or yen, but it doesn't actually give the dollar worth. What *should* give it worth is the gold or silver backing somewhere. The idea of the dollar is that it represents a bank note laying claim to precious metals heald by the government. If the government no longer backs to dollar, the dollar no longer has worth. If the dollar doesn't have backing, then the US can just simply print money from thin air and that screws up the entire world monitary system. There is a finite amount of worth in the world. If there is more currency in the world than there is worth, then the whole thing collapses and we go back to bartering for coon skins again.