Great blog post! I have so many questions. Isn't a fixed-rate system "Marxist" with risk of debasement? @NickSzabo4
http://unenumerated.blogspot.com/2016/02/two-malthusian-scares.html …pic.twitter.com/Z6CQVvrU3Y
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Fixed rate like pegged to an asset like gold?
Not just an abstract fixed rate, an actual obligation to deliver gold on demand to note holders.
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What about industrial commodities (as an asset) surviving a currency collapse? Would they be revalued in terms of the new currency?
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Currencies collapse because of debasement or loss of trust in the govt/currency. In theory, strict peg to a commodity eliminates most risk
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That's not an option right now but purchasing industrial commodities is.
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So buy them?
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I don't know if my assertion about them being revalued in the new currency is correct. That's why I asked Nick.
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That's not how it works. It's the other way. The currency is adjusted
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Do you know of any examples offhand? It seemed like in Greece, assets faired well with the switch to the Euro, unlike the debt which doubled
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When we went off the gold standard
End of conversation
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Right, that's the only kosher way I see a real peg. How is that Marxist?
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If gold were to be held at a fixed-rate (like $35 an ounce, for example).
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It worked fine in the past until the govt f-d it up
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IIRC, banks came into existence for the purpose of verifying "real" silver and gold coins and offering certified deposit receipts.
End of conversation
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