RE: Odds & Ends

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preparedwombat in LeoFinance • 5 years ago (edited)

Banning cash increases the value of cash.

For gold and silver coins, sure. Maybe even copper coins. But for pieces of paper? Fiat has value because a government says it has value. If a government says it no longer has value, how would that increase its value?

How much does it cost for a glass of water?
Said no one ever.

Oh, I’d be willing to bet that it’s been said in poor, dry places fairly often throughout history. Velázquez even painted several versions of it.

The beating will continue: until morale improves!

Heh. I’ve seen this attributed to everyone from Captain Bligh to a WW2 Japanese officer. But I wouldn’t be surprised if it’s actually much older than either of those.

5 years ago in LeoFinance by preparedwombat

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edicted 5 years ago

If a government says it no longer has value, how would that increase its value?

It doesn't matter if the government says an asset has value or not.
The asset has value if people agree that it has value.
If the government destroys 99% of all cash but only removes 98% of the demand: the value of cash doubles.
It's still an asset that's hard to counterfeit that everyone has already agreed has value.
You can't un-brainwash the population and tell them cash has no value.
That takes generations. The timelines don't add up.

Creating a black market for an asset will always increase its value.

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preparedwombat 5 years ago

Maybe numismatists would consider it to have some value (much like some Confederate money does), but I doubt that anyone bought and sold anything for Confederate currency in 1866.

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edicted 5 years ago

This is my favorite coin.

Liberty Silver Dollar.

I have many of them.
1 Ounce 90% pure junk silver.
I bought them at $6-$9.
They are now worth $30.

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preparedwombat 5 years ago

Yeah, and I also like the walking Liberty half dollars, fairly common in circulation when I was a kid. At least as far as half dollars go, never a particularly popular denomination. Because cash registers never had a place for them? Chicken/egg?

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