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Of course it works at that level,
We are in agreement then!
I'm referring to the larger monetary & financial system, not just the spendy bit. Though if my bag of crisps that costs 50p today would cost £50 next week due to a (admittedly rare) hyperinflation event then it'd suggest the system has failed people at that level at that point in time. That kind of event here may force us to choose dollar or euro to reset things.
The USD and Euro are both fiat currencies though, so that wouldn't change the underlying collective delusion that money is valuable when in fact it has no intrinsic value. Whether or not your currency is a fiat currency or not, the distribution of wealth is essentially a political issue unrelated to the nature of the currency the state in question uses.
I dunno, folks can't voice an opinion without offering a solution? I'm acknowledging that I can't solve this, greater (and more altruistic than our money managers) minds are needed.
You're right, I'm being overly dogmatic. Identifying a problem is a part of finding a solution, even if the solution isn't immediately apparent. However, whether a currency is a fiat currency or not doesn't strike me as being the underlying problem. The underlying problem is the distribution of wealth and the means by which any currency is distributed amongst the population. What form that currency takes, however, is not the fundamental issue I would suggest. Whether it's shells, leaves, precious metals or the collective delusion of a fiat currency.
Brommers-
The USD and Euro are both fiat currencies though, so that wouldn't change the underlying collective delusion that money is valuable when in fact it has no intrinsic value.
I hadn't meant to imply otherwise, just stating that this would be the likely "correction" if pound sterling fails. There'd be chance euro or dollar could fail similarly eventually, that chance is always there.
I like the term collective delusion.
However, whether a currency is a fiat currency or not doesn't strike me as being the underlying problem. The underlying problem is the distribution of wealth and the means by which any currency is distributed amongst the population. What form that currency takes, however, is not the fundamental issue I would suggest. Whether it's shells, leaves, precious metals or the collective delusion of a fiat currency.
Shells, leaves, precious metals, or even grains of sand would all ultimately be finite means of currencies, whereas collective delusion is potentially infinite.
This means that the wealth inequalities we both agree are a problem can become orders of magnitude bigger than with any of the finite currencies, even grains of sand (eventually).
rhb
Of course it works at that level, I'm referring to the larger monetary & financial system, not just the spendy bit. Though if my bag of crisps that costs 50p today would cost £50 next week due to a (admittedly rare) hyperinflation event then it'd suggest the system has failed people at that level at that point in time. That kind of event here may force us to choose dollar or euro to reset things.
On cash though, Some folks are nervous about cash being refused in many shops now. I'm undecided. It will be interesting to see if cash returns once the world is covid-safe.
I dunno, folks can't voice an opinion without offering a solution? I'm acknowledging that I can't solve this, greater (and more altruistic than our money managers) minds are needed.
Probably. I'm at/beyond the limit of my brain here tbh, as evidenced above no doubt ;)