Why is money worth anything? Answer: Because everyone has agreed that it is. You could view that as a banality. Or you could think about that question for years, and still have it blow your mind every time.
I must admit that given the impending and possibly world-wide devastation of our fiat monetary system, this question is actually much more than just an interesting philosophical exercise.
If the US Dollar crashes, and we subsequently witness the crash of Britain's economy, and the dominoes continue to fall with China calling in our then-unpayable loans, umm, exactly what happens next?
On that note, maybe it's time to buy a shotgun...
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I don't necessarily think you need to do that, but when the Chinese government tells its population that their dollar based savings have gone up in smoke, the commissars will need shotguns and more...
ReplyDeleteThe subtext to why China might be calling in our unpayable loans is that so far they are buying those notes with the dollars forged off our consumer-based economy. If we can't keep buying their stuff, they can't buy our now worthless paper. Think of the economic dislocation they will feel if this happens. If America catches a cold, the rest of the world catches the flu, if America catches the flu, the rest of the world gets pneumonia, if America gets pneumonia, the rest of the world is done for.
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