What backs all fiat?

in #life7 years ago

I recently was reading about Aristotle and his views of the two different types of fiat. For the last 2,000 years we have not questioned what backs our monies. It is a belief in our government that backs our fiats. But I believe we have evolved over the last 2,000 years. I believe when I give someone $1000 they will provide $1000 dollars worth of labor or the labor/research and development to make said product. And I will feel cheated if I give someone $1000 for nothing. It is my belief that our personal labor is what backs all money. How do you think all those slave owners really made their ROI? From the cotton itself or from the free labor to pick the cotton? Just a thought to get a conversation going. I am more interested in everyone's view on this subject vs my own. Thanks.

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How do you define what $1,000 of labor is, though? 100 years ago, a day's worth of labor was about $1 (another day, another dollar). Today it's more like $100+, meaning the dollar has lost 99% of its purchasing power since the Fed was created. Fiat can work as long as its supply in circulation is tied directly to the amount of goods and services in an economy. But today we have central banks printing fiat to infinity. That's a big part of why crypto has been mooning.

Our goods and services, is our labor and data isn't it? "They" say data is our new gold. But thank you, I haven't considered your view. Makes a lot of sense. Time to add that to my equation.

Last night I was thinking about you comment. And my view on your question about what defines $1000 of labor. I think your are talking about government control inflation. The state determines our minimium wage. Controls.

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