What should we do after fiat currency fails?

[YALE]

I had a similar thread up before, but it never took off. The question still lingers, so here we go again. I don't mean personally. I mean what should the world do for an economic system when it's clear to even the stupidest people on the planet see that using fiat currency won't work? How do we keep credit available without using imaginary money?

[Sean88gt]

I'm not sure how a global market would adjust to this. On a local basis I think you would see a lot of metal swaps and bartering systems popping up. Economies would be locally based and you would see city centers like were popular 100+ yrs ago.

If it didn't lead to war.

[mstng86]

Eliminate credit. /thread

[Sean88gt]

Eliminate credit. /thread

Are you prepared to see the result of the entire world economy shrinking by 75%?

[Sgt Beavis]

Eliminate credit. /thread

Kiss your job goodbye.

>restart thread

[mstng86]

Are you prepared to see the result of the entire world economy shrinking by 75%?

Would you rather die by starvation or via guillotine?

Seriously though, this is a really good question. I find the limits of the human mind to be interesting. What I mean is, there is another way of handle our economy, but we are stuck in our fundamental ideas that were established thousands of years ago. The barter system, credit, fiat money, gold standards: all are originated from some original idea thousands of years ago.

Why can't we come up with a new original idea?

[Sean88gt]

Would you rather die by starvation or via guillotine?

Seriously though, this is a really good question. I find the limits of the human mind to be interesting. What I mean is, there is another way of handle our economy, but we are stuck in our fundamental ideas that were established thousands of years ago. The barter system, credit, fiat money, gold standards: all are originated from some original idea thousands of years ago.

Why can't we come up with a new original idea?

I'm sure we can. The problem is that politicians in order to get more votes tied the logic strings to the heart strings, which made it impossible to have an honest debate without the side that feels they are losing throwing out tear jerking, bleeding heart bombs. Because they lack the stomach to make decisions that are responsible the citizens will have to muster the fortitude to survive the result of politicians bleeding hearts.

The guillotine has had the blade removed, so they will drop a block on your neck repeatedly until the job is done.

[Broncojohnny]

Fiat currencies may fail in different parts of the world but the dollar won't fail. This country is in bad shape thanks to entitlements but the Euro will implode long before the dollar does.

[YALE]

We are not good problem solvers.

[svauto-erotic855]

I don't know what you will do but I will be filthy rich.

[YALE]

I don't know what you will do but I will be filthy rich.

Way to read the first post.

[Denny]

Fiat currencies may fail in different parts of the world but the dollar won't fail. This country is in bad shape thanks to entitlements but the Euro will implode long before the dollar does.

I can't believe I missed this gem of a thread!

Anyway, all other countries have to do is trade with their currencies instead of the dollar and I give the dollar one month to go. Once the dollar goes, the rest should go in a matter of weeks. I don't see the masses flocking to the dollar like they once did in times of crisis, so it will definately be interesting. I wouldn't go into anything paper. Rules can change and they do regularly to the advantage of the biggest players. Hell, most of the trades are done computer to computer these days anyway. What do you think causes these little flash crashes? I have a feeling those will start getting more and more frequent in every market.

No currency, no paper promises... hard assets.

I do understand your logic about the dollar's impossibility to fail, but I think that many will be wrong about it. When we're relying on the rest of the world to keep its value, it is already worthless, in my book. I might be a little early to the show, but I think I'm right. Notice how many buyers are in physical gold and silver? I'm talking banks, corporations, governments and individual investors. These prices are higher than ever, yet they are setting record sales by volume. I'm not talking paper either. I'm talking physical metal.

It's fun to watch these SPOT prices (especially over the last year or so), but they mean nothing to my physical holding. I measure that wealth by the amount of ounces I have for each.

Granted, I do play a little with the futures and some ETFs, but I never keep anything in it. I only jump in on a short that is a no-brainer and get right back out. I take profit and look for the best opportunity to buy some more physical.

Now for the original post... In the absence of fiat money, you're going to have to be very diverse with what you use to barter. As most know, I am heavy into precious metals, but I also have many other bartering items. Long shelf-life foods, bottled water, common rounds of ammo, fresh fruits and veggies (soon), alcohol, building material, oil, tools and some other stuff.

Anyone you do commerce with is going to have a different need(s). As of now, it doesn't matter since currency is used to get whatever that end product is for them.

[Denny]

Moody's Just Threatened To Slash The US Credit Rating

http://www.businessinsider.com/moodys-warns-on-us-debt-rating-2011-6#ixzz1OJc7QmRs

http://www.moodys.com/research/Moodys-Updates-on-Rating-Implications-of-US-Debt-Limit-Long?lang=en&cy=global&docid=PR_220066

Moody's had previously indicated that its stable outlook on the AAA rating was based on the assumption that meaningful progress would be made within the next eighteen months in adopting measures to reverse the country's upward debt trajectory.

[Snatch Napkin]

It's a damn good thing I've been surviving as a broke dick for so long, as I will have endless abilities to trade for things I need when money is no longer valid.

[svauto-erotic855]

Moody's Just Threatened To Slash The US Credit Rating

http://www.businessinsider.com/moodys-warns-on-us-debt-rating-2011-6#ixzz1OJc7QmRs

http://www.moodys.com/research/Moody...ocid=PR_220066

They are lying for political & profit reasons. Our credit rating will improve if we don't raise the debt limit. The law mandates that we pay the interest on the debt before we pay anything else and we have plenty (2 trillion dollars + per year) coming in to do that.

When the media says that the US will default on it's obligations what they mean is that we will no longer fund the public dole. They believe that the purpose of the government is to redistribute wealth and it not being able to do so threatens their power base and shakes up their world view.