15.3.12

A Store of Value (Currency)

Haiku of the Day:
midst vernal jump start
blossoming within us all
again uprising

Currency valued by fiat is not a store of value except that fiat rule is benevolent and long-sighted. We are at this public and private crisis with social and pension benefits not because the benefits are so great, but because the dollars paid in are devalued over time--today's retiree paid a dollar in at a time when that would buy a gallon of gas, a gallon of milk, or both, depending on the person's career path, but they draw that dollar at a time when it will buy a quart of neither. A stable currency with which to save must be the basis on which our collective debts, public and private, social and personal, are balanced; our alternative, the present state or a close modification thereof, pits every citizen in a battle with inflation, loan interest, and the risk/reward of investing dollars to hedge against the former, is unsustainable and unfair.
What if currency was valued, passively for the end user, the way inflation adjustments are used to value past dollars (e.g. a 1982 dollar is worth $2.35 today by the standard metric)? What if that monetary supply of "date stamped" dollars was never inflated with "quantitative easing"? Now what if that currency could also be freely exchanged without the several percent overhead used by credit card companies? That tiny slice of the pie returning to the seller translates into a broader base of both sellers playing the margins and buyers taking advantage of the more competitive market.

[This concludes my introduction to the four topics, albeit in five parts. Future posts will assume familiarity with these basic premises, and may or may not reference the original post as context.]

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