I finally got to the end of heaviside’s comment spree and responded to them all. And I’m glad I did, because this was waiting for me at the end. Basically, it means Vox is right and Nate is wrong, and we should expect continued debt disinflation in the near future.
Even “non-fiat” currencies backed by a commodity are ultimately fiat in that they are based on the promise that they will be exchangeable for whatever goods that they are supposedly backed by. There is no difference between the government promising you it will give you an ounce of gold for your dollar and the government promising to keep inflation low enough a dollar will buy an ounce of gold. Not only is all debt money, but all money is debt.
Ultimately, the exchange value of anything(nominal as opposed to intrinsic value, which economics can’t measure), is only as good as the trustworthiness of the exchangees.
Taking the philosophical principles of Austrian economics to their logical conclusion leads you to believe MEFO bills are the best form of currency, if you have as much faith in der fuhrer as I do.
All exchanges are a form of manipulation. You can be selling penny stocks or tractor-trailers or gold or iphones or a party or an ideology or a religion, all money is a tool for modifying the behavior of other people. You wouldn’t care for a hundred dollar bill if waving it around didn’t change the behavior of people around you. A debt is an obligation to behave a certain way. The price of every single security listed on the NASDAQ is the product of manipulation.
In an irreligious world, control of money is the control of religion.
In economics, there is no such thing as intrinsic value:
“There is no such thing as a product. Don’t ever think there is. There is only sex. Everything is sex.”
Sex is money is time.
Is debt like money?
I’ll work on the details and hopefully get back to y’all with an accessible explanation sometime in the future.