Should we abandon fiat currency?

We would have to at some point in time. Think of our current monetary system like a broken stage-coach wheel, there is only so much repair, etc. we can do it with. The road is getting rockier, the weight on the axle increasing, the load bearing capacity is tested, etc. So it is not easy. Snap can happen anytime. The current system is not sustainable. Anyone with a decent bit of knowledge of how money (value) is created, shared, distributed, etc, can tell you this.

So…

We will have to decide what to do with our existing system? Do we just close it down? We can’t, despite the artificial wealth created by the system, it would lead to a massive crash, unlike we have ever seen and throw everything into a spin. People would not know what to do. Hoarding would be common. Factories will stop producing in the uncertainty period, etc. etc.

We will have to gradually slowdown and stop what we are doing and then change course to the alternative we want to go to. The fiat concept is about 500 or so years old. Sure there were coins before that, but in all honesty the last 300–500 years count.

Does an idea need to be forcibly stretched into the future? Most likely not. The taxation mechanism of the current system (via inflationary mechanics), wealth inequality, insane commercial money creation, etc. all needs our attention today. It needs a fix.

If we are to move away from a fiat system, then what system do we eventually adopt. Some say Gold? Some say Silver? What happens when a 1.873 Million meteorite composed of solid gold crashes on Earth? What happens to wealth then, or a comet of solid gold is captured and mined by Elon Musk?

There goes your gold standard. It is a solid standard, because naturally i produces new gold at about 2% per annum into the market (may be 3% but no more). So it is not like with a few keys, 100s of Billion of Dollars can just be created. Natural growth has its own rate of production.

Some may have arguments that there is not enough gold to go around. Well, fractionalize it. If 1 gold ounce goes from $1300 to say suddenly $500,000 then there is enough fractional gold to go all around. And those old CRT monitors and printed circuit boards, just became a whole lot valuable.

If gold is not the preferred choice, then what is? digital cash? something like Bitcoin, where the entire world votes to have a consensus as to how much we produce and how much goes into circulation and what the rate of production of new money is?

This certainly can be done. Difficult, lots of unknowns, but can be done.

If you see the following documentary, it also depicts on how we need to move away from the fiat currency system to one that is backed by a commodity:

The Four Horsemen (Documentary)

Another great website that explains this is Positive Money (see: Positive Money). Read their many concept and solution papers. They are worth spending time on..

There are many books that have been written about this issue and how the problem can be addressed. One very influential book is the The Creature from Jekyll Island : A Second Look at the Federal Reserve (by G. Edward Griffin) [side note: ignore his ‘other’ works/talks] (Amazon link: The Creature from Jekyll Island : A Second Look at the Federal Reserve: G. Edward Griffin: 9780912986210: Amazon.com: Books)

The best alternative is something that can be backed with a commodity, so that arbitrary or unilateral money cannot just be made.

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