[13057] in Cypherpunks
Re: The Value of Money
daemon@ATHENA.MIT.EDU (f_griffith@ccsvax.sfasu.edu)
Wed May 4 16:59:16 1994
Date: Wed, 4 May 94 13:49:55 PDT
To: Blanc Weber <blancw@microsoft.com>
From: f_griffith@ccsvax.sfasu.edu
Cc: cypherpunks@toad.com
>
>I understand this much: there is some gold and other actual metal
>located in a vault, sitting there as a symbolic standard of wealth,
>worth, value. Everyone stakes a claim to it, and they exchange that
>claim to others in substitution for something else (dog, rifle, gas in
>the car, baby-sitting).
>Blanc
>
Actually, there is no connection between the gold and our money. I.e.
you cannot take US $ to Fort Knox (or any other government location) and
get gold for it.
This is why some posters have referred to "fiat money" - the $ is money
because the government says it is.
Reynolds
