Will the Virus Kill Fiat Currencies?
QUESTION: The goldbugs hate you, but they read you. Now they are claiming that the virus will kill fiat currencies. My question is simple. If the government cancels the paper currencies and moves everything to digital, what is the difference? Isn’t that still their claimed fiat currency?
PG
ANSWER: Yes. They refuse to surrender their idea that money must be backed by some commodity. They cannot comprehend that the value of a currency is the total productive capacity of the people. What governments are doing to end paper currencies is in fact destroying the productive capacity of their economies. They will also seize private cryptocurrencies. The object is to force everyone into their digital world that they control to collect taxes that they assume we do not pay.
Do these people think for one second that government would surrender the power to create a currency backed by something? That is austerity which is tearing Europe apart now with DEFLATION! The Wizard of Oz and follow the yellow brick road was about a protest march on Washington during the Panic of 1893. They were against the gold standard because it produced deflation. Remember William Jennings Bryan who delivered his speech – Thou Shalt Not Crucify Mankind of a Cross of Gold?
