You missed a huge point about gold and silver holding intrinsic value. You cannot really compare it to fiat currency like you did at the end of the video. You can't just "make" more gold like you can with fiat currency. It took a lot of hard work to get the gold out of the earth, refine it, and mint it into bars. Just something you should've included here in this video
@@firebrand_vinay Yeah that's what I said, the government can just print more money and dilute the currency. It's impossible to do that with precious metals because you can't make them
@@jarjarthestar Right, exactly. If technology ever made it possible to create more precious metals (and do so cheaply and easily) it would render them useless as a currency. But we're not going to make such a breakthrough any time soon, thankfully.
@@BaremetalBaron Gold has to be made atom by atom. So theoretically it can be made with a hadron collider but it would probably take you 100,000 years to make 1 gram. We'll be in flying cars and living on the moon before we can create gold. Gold and Silver is God's money
@@jarjarthestar They can mine more gold though, which is the same thing as essentially printing it. There's a reason why Spain in the 1500s came for precious metals in South America
@@georgereed2386 Unlike concepts in religion, money is a real thing that is backed by *_faith._* Money is a huge outlier in the category if things taken on faith. Pretty depressing thing.
Faith that is dieing and perishing as it is always used to profit for America capitalism and to weaponise it to take control not for good but for power wealth and distruction of others those who don't obey. I am dumping dollar we don't need it have it with world wide inflation.....
Hi Zenn, In a central-bank system like the system in the US, money is indeed debt. But debt does not have negative value. When someone buys a loan, they are anticipating a net positive gain in value. The reason why money is debt in modern economies is because the most efficient way to control inflation and deflation of a large currency is by manipulating the cost of borrowing it. Or I should say, "was" the most efficient way to control inflation. Many believe, cryptocurrencies is a more efficient, and just, solution.
@e M Can you cite the "hedging is against the law" statute? Since you don't know what you're yammering about (like the rest of your dumpster generation), please google it, look it up, ask Reddit, and get back to me on the answer someone else feeds you. I'll be here lurking in wait.
Unfortunately schools don’t want to educate students. The main person in charge is federal government that tells school districts and states to teach what they want the students to be taught.
there's a part of the equation you're not taking into account and that is money supply gold has a roughly finite Supply same thing with silver and that gives it a store of value that when you continuously print money into existence it loses its value and the more you have of it eventually it will crash just as all currencies that you can just print into existence and the rich get richer every time the money supply expands the bankers and the corporations and the poor suffer the pain of higher prices until the money does not work anymore it happened before in history it will happen again
No, gold and silver are not "just the same" as fiat money in that they're only valuable because they're used for trading. Silver has a bajillion and one uses. It has uses in manufacturing, industry, chemistry, even some alleged medicinal uses. Gold isn't just used for jewelry, it is, as you said, used in electronics and other applications. The thing that also retains their value is supply and demand. You can print more fiat money for almost nothing. It takes a *lot* of work to increase the gold and silver supply through mining. This means you can't easily devalue the currency by inflating the monetary supply.
@@amirbland7836 That's nonsense on so many levels. 1. You can't print gold, thus driving the value per ounce through the floor the way you can with paper money. 2. That's like saying eggs have no value "when talking strictly about trading". People eat eggs. It's why they command a price at all. And if you're trading them around as currency, part of the reason is that eventually they end up in the hands of someone who wants them for a purpose *other* than simply to trade. Indeed, commodity money (which is most money throughout history and is the natural origin of money), whether that be tobacco, gold, or even coffee beans, derives its value from the fact that it is a commodity first. That's where it's initial trading value comes from. People started trading gold specifically because certain people placed a high premium on it for other purposes, and if everyone's trading it around and so it's highly liquid, it means everyone can get the the things they need and the people who have actual use for gold can get gold when they need it.
You might be right if gold and silver were valued only for their intrinsic economic value as you described, but since they are valued way above that amount, based on the same principle of "it's worth this much because people think it's worth this much", it is the same as fiat currency.
@@davidreichert9392 Yes, gold is valued far above what it would be if we didn't use it as currency. But again: "The thing that also retains their value is supply and demand." You can't just inflate the monetary base with gold the way you can with fiat. With fiat you can literally just change a number in a database and magically there are more dollars. You can't just easily magic up more gold in the same way. That makes them completely different as the basis for a currency.
big mistake the guy making this video is making is that he says fiat currency and silver/gold are basically the same. the big difference is that currency can be made at any time thus reducing its value. in order to get more gold or silver you need to mine it which costs currency/resources so you cant dilute the value of that gold or silver because the metal represents what it cost to mine it.
Crypto is better, to mine crypto you need to use computing power, also even if you had the best computer in the world, the difficulty would increase with it
"currency can be made any time thus reducing its value". the same can be made to gold standard money;u can just print it, and the value will reduce since the paper cert supply increase but the gold reserve didnt.
Malaya FreeSpirit That’s the thing about gold standard, you need to be trustworthy to not print as much money as there is gold, with bitcoin, you can’t generate more supply because you need to solve a problem first, which is analogous to mining for gold
@@Ali-gh7rj but bitcoin or any crypto doesnt connect to real world economic. it just increase it supply according to algorithm. u can have an economic boom and shortage of bitcoin which will increase it value. or u can have economic disaster and oversupply of bitcoin which will reduce it value which is why bitcoin value change like wild horse. it is not stable. maybe a crypto currency that is backed by nation gdp is the best way forward instead of relying on algorithm.
Malaya FreeSpirit Crypto has many problems yes, one being if it does get used by everyone in world, it will take time to verify each transactions. I think we should go back to gold standard and abolish federal reserve for now until we figure out solution
Sam Sam problem with the gold standard is that other countries need to pay us in gold. The stockpiling and movement is way too slow. But if gold only came with a Star Trek transporter button .... oh wait, Bitcoin!
Your bitcoin is still on the blockchain even in your "own posession" meaning it was never in your possession. You never had it you just have a stake at it...
I think you meant to say fools. It's a relatively rare malleable metal that humans have obessed with throughout recorded history. It in and of itself is nearly worthless in most contexts outside a society that is under the common delusion it is worth something.
The US dollar gained status as a reserve currency because it is the Petrodollar (used globally to purchase oil), and because of America`s perceived economic strength in modern history. The DEMAND for a currency (thus its value) is dependent upon other nations wanting to purchase that countries goods or use that currency for purchases in general (such as oil). Likewise China and Japan purchasing so many US govt bonds because they believed the US govt able to pay its debts. That view is shifting.
This made me make a thorough research on stocks more and have been investing in ETFs and index funds, then other financial commodities, I am 85% into my $400k goal for the year, I want to buy a house buy Christmas to celebrate a great turnaround in my life.
You can look up Mr Eddy Bruke an Executive trade expert to get familiar and acquainted with how it works, he’s the best in his field with excellent expertise. Eddybruke .info .....
Taxation and the U.S. Governments monopoly on the production of Dollars is what gives the currency its Value, you have to pay your Taxes in Dollars which only come from one place.
The Fiat Dollar is an IOU. The older dollars didn't have the name Federal Reserve on it. It just read United States note/Currency or Silver Certificate.
The note is not money. The note is a score for a game that is counterfeited. A debt note is a claim on the future. A silver dollar is a claim on the past I can hold, same with gold. Gold and silver is a precious metal, a claim on the past. The debt note is a claim on future labor that may be repudiated. You are very confused about what money is.
The main difference is that commodity money (such as during the bretton woods system) created discipline on countries and states to act with scarce resources effectively. When the US ran deficits to finance war, countries started doubting that the US had enough dollars in gold reserves and started exchanging their currency into physical gold. This mean that you cant just run deficits in the commodity currency system, but you can run as much deficit as you want in the fiat currency system (look at US and Japan, the strong countries....)
The bogus fiat money is not the same as real money( gold & silver), because the value of real money is within the money itself, unlike fake money that has its value in the hands of few greedy men in New York.
Silver and Gold is valued as money because of their durability as well. They are basically indestructible, so it is the best form of a store of value. This is the best form of trade.
Durability is simply a property that makes it useful for the purpose of coinage. Imagine pointing out a basketball is useful due to the fact it bounces. Also, omits historical reference in terms of available technologies and that "silver" and "gold" coinage was almost always an alloy, often where gold/silver comprised but a small percentage of the material. Finally the unit not the material was always the standard, yet another lie of omission. All are examples of the mostly BS commodity money theory and common tactics used by shills. Find me a commodity money proponent who is not holding some bags in the commodity they promote. All of you should be shipped to island where you can "sell" each other your useless commodities and fables. Good luck creating any real value (in a monetary context) without human energy.
@@luckylui3282 Durability makes it useful for accounting. Pointing out that a basketball is useful because it bounces is a strawman's argument. A basketball manufacturer expends economic energy to produce basketballs. The basketball's usefulness is reflected by its price with respect to supply and demand. If people were shipped to an island with gold they would function just fine. The gold is simply a tool that is used as an accounting system. Within the local ecosystem prices of labor increase, or the price of the gold reduces, depending on how you want to look at it. The local market auto corrects based off the supply and demand. Money is an abstraction of economic energy. Perhaps in a few years you visit the island and you notice that fish is worth an enormous amount of gold compared to your local market. So you decide to take advantage of that arbitrage by buying fish at your local market and sell it at the island for a ridiculous amount of gold but for cheaper than what they sell their fish for. You do this over a period of time so the island is exporting gold and importing fish. The island's supply of gold starts to decrease and goes to you. The island's market dynamics shifts. The island's gold supply contracts and the fish supply expands. The island's local fishers expend time and effort to fish. Interaction with the local market allows everyone to communicate what their fish is worth; or any other commodities like fruits.
Problem with fiat is giving control of our currency to the federal reserve and letting corrupt corporations be in power. Best thing to do is get rid of military industrial complex, central bank, big pharma. The world needs to use bitcoin because no ones owned bitcoin expect the people
Well, I'd have to disagree to the statement you made that "it's not a huge leap between the commodity backed money and fiat money". As we have all seen in the past 50 years it's actually game changing. Due to the fact that the currency not being backed by anything tangible, the central banks can now issue currency at their will. Not being limited by anything real is generating inflation almost by definition.
Silver and gold are just arbitrary metals that have been traditionally used as currency in different cultures. They just as easily could have used iron and palladium. However, you can't just print silver and gold. It anchors the currency to something physical and finite.
Taxation power is what ultimately gives the government the ability to print fiat money. It creates artificial demand for the government’s debt, which is collected and used to pay back that very same debt. Ever wonder why income taxes and the fed were established at virtually the same time?
The recession of 2008 foreign investors played a part in stock market recovery. As the market fell by 40%, markets around the world started falling, then foreign investors started buying into the American stock market, hundreds of billions of dollars. Expert Stock market specialist, didn't know what was happening! They asked a foreign born stock market specialist, he said, "foreigners trust America's financial system, it respects property and rule of Law!" Almost 2 trillion dollars poured into the stock market! (Trust) Like NATO and EU. trust and shared values, like supporting Ukrainians!
Are you serouis, man? Gold and silver has value just because people beleive so? How about cost of finding gold? How about cost of withdrawing gold from the land? Can you do it for free? Come on.
How about the cost of buying a bitcoin? How about mining bitcoin from the computers? Can you do it for free? Come on. But bitcoin has value just because people believe it has.
Shouldn't note read LAWFUL TENDER instead of "LEGAL TENDER" just like the $10,000 bill ...on demand as authorized by LAW? Doesn't our Constitution recognize lawful money as silver and gold anyway?
One important thing not mentioned. Every piece of gold or silver mined and minted means = more value per overground piece. Every dollar printed and brought into existence = currency and every other dollar out there or in your pocket is valued less. Means less purchasing power.
nope, everything is subject to supply & demand. spanish empire once facing economic crisis due to inflation. what causes it due to oversupply of gold & silver from the new world mine just conquer. those dollar can actually increase in value. it just the policy maker want to have a bit inflation so people will spend money instead of hoarding it. u can actually slowly print money in comparison to economic growth and it will causes money supply shortage and deflation=increase value of money
Printing money is appropriate for a growing economy. If there is no printing, money goes up in real value and that is called deflation - much worse than inflation. My preferred form of currency is one backed by Brent Crude, or a unit of energy. The value would be stable during printing provided oil/energy reserves exist.
A detailed overview with real examples, love it! Do you think we should anticipate the return of representative money? Or would the society switch to digital unregulated currencies?
I dont understand: allowing banks to create money out of thin air when creating loans, how well is this controlled by the central banks and how? Central banks are not government organisations but are private institutions in many countries: no problem there?
Gold and silver coinage is also called “sound” or “lawful” money which has intrinsic value. The coinage is the asset because it has weights and measures. We used gold and silver because they have 3 necessary elements: Store of Value, a Medium of Exchange and a Unit of Account. When the currency was redeemable the paper was a receipt. In 1963 when Kennedy wrote executive order 11110, he delegated the responsibility of removing silver out of circulation to the Secretary of the Treasury of the IMF (The Keeper of the Fund [Public Law]… not the Treasurer of the United States). That is why currency after 1964 is not redeemable in silver and the language was changed on the currency to reflect that fact. All the currency today is credit and not money. Note, it states it is legal “tender”, not money. It is illegal for a bank to loan you money. They loan you credit. When you make a deposit into a bank you are loaning your credit (currency) to the bank and if you make a withdrawal you are not calling in the loan. Recently, companies have wanted to not take currency and only deal with credit cards or some digital form. By law, if you receive a product or service the company has to accept payment with currency if you choose to pay the debt that way or you are not obligated if you tried to pay with legal tender and they refused. Finally, the law states that the U.S. citizen is responsible for the debt of the dollar, which means all those entitlement programs we borrowed credit and insured the national debt… you owe the payment. Good luck.
The danger of Fiat money is that it is created just as a mint wants, unlike silver and gold. This opens up a possibility to contol the money, and, ultimately, ourselves. In my opinion.
No sir Asia gives valuable assets of gold and silver coin I live in India and culture of India give much values silver coin and gold coin those who hold it...
But!!! Think about when we went off of the gold standard towards fiat money...and what was the result afterwards...as a kid...I heard the word inflation.....ALOT!!! to simply print more money because you want to fund a war effort and can do so because the standard has changed didn't mean that we have "skirted" around a consequence...We place value upon many things...I think Pokemon is childs play...my adult son does not...And pokemon had its day monetarily....If you ever you ever wanted to paint a picture of instability(which doesn't mean it will always be bad or difficult) having changed from the gold standard to the fiat system...is that painting.
Capitalism is based on the idea of voluntary exchange. When 50% of all transactions are conducted using a media that is forced upon the actor by coercive threats of violence, all exchanges contain a very meaningful non voluntary component. It is a struggle to argue that such a system is capitalism. If it is than in the best case is a very bastardized very corrupted version of capitalism. So no capitalism can not be blamed for problems that occur when it is not present.
@Dr0pkidd WRONG! The fed is charging everyone interest. It has nothing to do with capitalism. Also, I'm willing to bet you don't know the difference between crony capitalism and free market capitalism and which one we have in the USA.
Look at the Constitution, Article I, Section 10, first paragraph. It says " No State shall emit bills of credit, make any thing but gold and silver coin a tender in payment of debts". That defines gold and silver as real money, and anything else is counterfiet, and unconstitutional. The govenors of all the States are sworn to uphold the Constitution, and are responsible for enforcing this requirement. Why don't we make them do it? Because most people in the USA, and around the world, are ignorant about how an honest money system is suppose to work.
@@jaydupree418 But gold doesn't have any intrinsic value either. You can't eat it, drink it or use it in any meaningful way. If you are stuck in a desert island with no food and water, but you have lots of gold, are you really rich? Fiat money is the closest to "intrinsic value" you can get other than actually backing your currency with food or water which would come with its own set of problems
Americans used to pay other countries/civilizations in silver because they valued it more than gold. I think this was Native Americans and South Americans
Uh... how did this video miss the most important point of fiat money - that it is BORROWED from the central bank? The borrower at some later time has to get it back and repay his debt to the bank - this is the underpinning of its value more than its status as legal tender. So you can trust in its value because somebody else needs it. It is not just some shared illusion.
For commodity money ". . . the thing that you're using for money . . . has SOME value in it's own right." What IS that value, exactly? Does everyone agree on that value? Money is a social institution. You can't really understand money without that essential premise.
silver and gold are not valuable because of faith!for example, out of all elements known to man, silver is the most reflective of light, silver has the highest thermal conductivity of any metal, and silver also possesses the highest electro-conductivity out of all the metals known. gold also has some unique properties that make it extremely valuable. Gold is a noble metal, and does not naturally rust or corrode. Gold is also EXTREMELY malleable. For example, One ounce of gold can be stretched to a length of 50 miles; the resulting wire would be just five microns wide. I could go on and on about all the amazing things ONLY gold and silver can accomplish but you get the point. This is ignoring all of the history around gold and silver. I urge anyone reading this to look back in history at politics, economics, and the gold and silver monetary standards. you have to then extrapolate all of this data, and realize gold and silver ARE the money. they ARE inherently valuable, and there's a reason gold and silver have been raw, physical, tangible, ANALOG wealth for thousands of years.
The main idea is that Fiat money is much cheaper to print than commodity money, because commodity requires mining medals. Gold commodity would require excessive amounts of gold, and so fiat money is a quicker and cheaper approach because it's derived from trees. However, I think printing fiat money is, in a sense, a form of cheat because that money is not supported by any labor or work. The value of money is meant to exist through a relationship between labor and payment; therefore, simply printing money and declaring it legal makes it "fiat." Fiat, in other words, means that the money was falsely and ilegaly added to the monetary cycle of labor and payment. Money is only supposed to cycle via workers getting paid, people buying products, or investing in assets. Money is not supposed to be secretly printed and distributed. I don't know why the author of this video struggled so much to explain a simple concept. He almost made it harder to understand. By the way, the gold coin with the Native American guy with the printed words, "Liberty" is highly derogative. They didn't experience a spec of liberty during the years of Thomas Jefferson
Gold is valuable because of its properties. Gold is gold for eternity. Paper money disintegrates. Paper money not backed up by precious metal is fake. They keep on printing IOUs. Who will eventually pay for IOUs and deficit?
Fiat means law. Congress decides what we use based on article 1 section 8 (handed to Fed). Commodity money failed. Digital money is fine as long as it is managed independently for the benefit of the people not private interests. The Fed needs to be reformed not ended and folded into the government, not privately run for benefit of banks in priority. Chicago economists in the 30s understood this and came up with the Chicago plan. Debt based money needs to be swapped for equity money (like Lincoln greenbacks). It’s an accounting and plumbing transition. Money’s value is determined by quantity, usage, military, confidence, productivity, property rights, and laws. One country could deem gold money and another could deem paper to be money, both would be by fiat. Money is inherently (by nature) law not a resource (sorry Adam Smith)
Wait, hang on. I know this is an old video but did you just explain currency came about b/c people didn't want to haul around the coinage? That it was just a contract on paper saying "Somewhere I have some Morgan Dollars you can exchange for this"? I never understood this until now!
knowing that you were not redeemed with corruptible things, like silver or gold, from your aimless conduct received by tradition from your fathers,but with the precious blood of Christ, as of a lamb without blemish and without spot.He indeed was foreordained before the foundation of the world, but was manifest in these last times for you who through Him believe in God, who raised Him from the dead and gave Him glory, so that your faith and hope are in God. - 1 Peter 1:18-21 You cannot redeem silver or gold.
Commodity is not money. Money is just a measure of value. The problem is interest. On commodity 'money' or fiat money. Interest is the fundamental driver of instability.
Wait-so, banks fail, government is bankrupt and can't back up their promise to pay, where are we then? What can fiat money be traded for if it has no value?
Great, now I'm panicking and want to start a commune and start back up with the bartering system.. I have beads.. beads are valuable to some.. Clothes, shoes ect..
Gold and silver are more rare than say wheat or potatoes or beef and sugar. Gold and silver are small compared to other commodities because of its rarity. Also gold and silver are durable and reusable, Gold is the best storehouse of wealth because it is unchangeable and will not degrade, more than any other element it is durable like diamonds, but even diamonds can be worn down and when this happens they can not be reconstituted like gold. Paper money now is regarded by good faith and credit in the issuer of that fiat currency. Loss of faith in that insurer and its poor credit, lets say they carry a lot of debt or are fiscally irresponsible not being able to live within a budget, then that currency is at risk of becoming worth less or worthless.
you got the part at 4:10 wrong. silver and gold DO posses inherent value. gold and silver were not chosen for thousands of years by chance. the internet and computers could not exist without gold or silver
Another difference is that gold and silver are resources that can not be produced, you cannot make more than the ammount that exists meanwhile paper money can be produced almost infinetely. This gives enormous power to those who have the right to print money as they control who gets to have more or less money and how valuable the money will become. I think we live in dangerous times because of that
Exactly any country who wants to trade without the US dollar will be seen as an enemy of the US. Because they threaten their global economic control. Also why france still has such a strong grip on its former colonies in west africa, because they use francs as their currency. Its economic enslavement.
Maybe I missed it..but why was it okay to turn the currency to a fiat money?...how did the citizens at that time respond to that change?...was it voted on?
Money can be printed and will cause it to loose value. All one has to do is follow the financial troubles this country has had since we left the gold standard.
Fiat money - "Money backed by men with guns"
unconstitutional and evil
Kevin Ohlsson wise man. 🇺🇸🏴
Best description lol
Agreed.
And code in a computer
Fiat currency is scam
recession soon
INDEED!! Goes without saying...
You are right. And because it’s a scam it’s is worthless. So you should send all your worthless fiat bills to me so I can properly dispose of them
I can still buy a coke with it
@@dennisjohnston5365 Sir, you've made my day.
You missed a huge point about gold and silver holding intrinsic value. You cannot really compare it to fiat currency like you did at the end of the video. You can't just "make" more gold like you can with fiat currency. It took a lot of hard work to get the gold out of the earth, refine it, and mint it into bars. Just something you should've included here in this video
@@firebrand_vinay Yeah that's what I said, the government can just print more money and dilute the currency. It's impossible to do that with precious metals because you can't make them
@@jarjarthestar Right, exactly. If technology ever made it possible to create more precious metals (and do so cheaply and easily) it would render them useless as a currency. But we're not going to make such a breakthrough any time soon, thankfully.
@@BaremetalBaron Gold has to be made atom by atom. So theoretically it can be made with a hadron collider but it would probably take you 100,000 years to make 1 gram. We'll be in flying cars and living on the moon before we can create gold. Gold and Silver is God's money
@@jarjarthestar No arguments here
@@jarjarthestar They can mine more gold though, which is the same thing as essentially printing it. There's a reason why Spain in the 1500s came for precious metals in South America
The dollar value literally depends on the reputation of the country. It's based on faith.
Faith, or gullibility?
@@georgereed2386 Unlike concepts in religion, money is a real thing that is backed by *_faith._* Money is a huge outlier in the category if things taken on faith. Pretty depressing thing.
@Michael Hemsley It is the largest _"legal"_ pyramid scheme.
Faith that is dieing and perishing as it is always used to profit for America capitalism and to weaponise it to take control not for good but for power wealth and distruction of others those who don't obey.
I am dumping dollar we don't need it have it with world wide inflation.....
and confidence
Fiat money is debt, it has negative value.
Zenn Exile that is why smart people put it into a hedge asset
@@milothemalinoismethod Lol. Because hedging is backed by substance.
Hi Zenn, In a central-bank system like the system in the US, money is indeed debt. But debt does not have negative value. When someone buys a loan, they are anticipating a net positive gain in value.
The reason why money is debt in modern economies is because the most efficient way to control inflation and deflation of a large currency is by manipulating the cost of borrowing it.
Or I should say, "was" the most efficient way to control inflation. Many believe, cryptocurrencies is a more efficient, and just, solution.
@e M Can you cite the "hedging is against the law" statute? Since you don't know what you're yammering about (like the rest of your dumpster generation), please google it, look it up, ask Reddit, and get back to me on the answer someone else feeds you. I'll be here lurking in wait.
@@jesselee34debt is negative. that's why we have economic cycles. dont know what planet you're on.
When someone else controls the buying power of your Labor... *THAT IS THEFT*
Great video. I learned something. Something that should be drilled into us in school.
Unfortunately schools don’t want to educate students. The main person in charge is federal government that tells school districts and states to teach what they want the students to be taught.
@@ramonsmediablog They want to keep us dumb enough to work 9-5 as factory workers while they fill their pockets.
there's a part of the equation you're not taking into account and that is money supply gold has a roughly finite Supply same thing with silver and that gives it a store of value that when you continuously print money into existence it loses its value and the more you have of it eventually it will crash just as all currencies that you can just print into existence and the rich get richer every time the money supply expands the bankers and the corporations and the poor suffer the pain of higher prices until the money does not work anymore it happened before in history it will happen again
what was the previous case study? so I can study it! thanks in advance
So what can one do to avoid that
Every fiat currency in history has eventually failed. 😁😁🏴🇺🇸
yeah because that's 1) BS and
2) Libertarian ideological slant
@@nolanmaxwell6879 correct
No, gold and silver are not "just the same" as fiat money in that they're only valuable because they're used for trading. Silver has a bajillion and one uses. It has uses in manufacturing, industry, chemistry, even some alleged medicinal uses. Gold isn't just used for jewelry, it is, as you said, used in electronics and other applications. The thing that also retains their value is supply and demand. You can print more fiat money for almost nothing. It takes a *lot* of work to increase the gold and silver supply through mining. This means you can't easily devalue the currency by inflating the monetary supply.
absolutely 💗
If we are talking strictly about trading gold doesn’t have any value just like money
@@amirbland7836 That's nonsense on so many levels.
1. You can't print gold, thus driving the value per ounce through the floor the way you can with paper money.
2. That's like saying eggs have no value "when talking strictly about trading". People eat eggs. It's why they command a price at all. And if you're trading them around as currency, part of the reason is that eventually they end up in the hands of someone who wants them for a purpose *other* than simply to trade.
Indeed, commodity money (which is most money throughout history and is the natural origin of money), whether that be tobacco, gold, or even coffee beans, derives its value from the fact that it is a commodity first. That's where it's initial trading value comes from. People started trading gold specifically because certain people placed a high premium on it for other purposes, and if everyone's trading it around and so it's highly liquid, it means everyone can get the the things they need and the people who have actual use for gold can get gold when they need it.
You might be right if gold and silver were valued only for their intrinsic economic value as you described, but since they are valued way above that amount, based on the same principle of "it's worth this much because people think it's worth this much", it is the same as fiat currency.
@@davidreichert9392 Yes, gold is valued far above what it would be if we didn't use it as currency. But again: "The thing that also retains their value is supply and demand."
You can't just inflate the monetary base with gold the way you can with fiat. With fiat you can literally just change a number in a database and magically there are more dollars. You can't just easily magic up more gold in the same way. That makes them completely different as the basis for a currency.
I used to have a $10 silver certificate bill when I was a teenager. I don't know whatever happened to it.
big mistake the guy making this video is making is that he says fiat currency and silver/gold are basically the same. the big difference is that currency can be made at any time thus reducing its value. in order to get more gold or silver you need to mine it which costs currency/resources so you cant dilute the value of that gold or silver because the metal represents what it cost to mine it.
Crypto is better, to mine crypto you need to use computing power, also even if you had the best computer in the world, the difficulty would increase with it
"currency can be made any time thus reducing its value".
the same can be made to gold standard money;u can just print it, and the value will reduce since the paper cert supply increase but the gold reserve didnt.
Malaya FreeSpirit That’s the thing about gold standard, you need to be trustworthy to not print as much money as there is gold, with bitcoin, you can’t generate more supply because you need to solve a problem first, which is analogous to mining for gold
@@Ali-gh7rj but bitcoin or any crypto doesnt connect to real world economic. it just increase it supply according to algorithm. u can have an economic boom and shortage of bitcoin which will increase it value. or u can have economic disaster and oversupply of bitcoin which will reduce it value which is why bitcoin value change like wild horse. it is not stable. maybe a crypto currency that is backed by nation gdp is the best way forward instead of relying on algorithm.
Malaya FreeSpirit Crypto has many problems yes, one being if it does get used by everyone in world, it will take time to verify each transactions. I think we should go back to gold standard and abolish federal reserve for now until we figure out solution
Bring Back Gold and Silver..
Sam Sam problem with the gold standard is that other countries need to pay us in gold. The stockpiling and movement is way too slow. But if gold only came with a Star Trek transporter button .... oh wait, Bitcoin!
ok, if you wanna buy a Pepsi, do you carry one tenth of a gram of gold or something?
,
The Helghast Gamer paper money still exist but upon the backing by real gold upon local purchases
Bring back tea and barley
Your bitcoin is still on the blockchain even in your "own posession" meaning it was never in your possession. You never had it you just have a stake at it...
Gold was, is and will probably always be money of *KINGS*
and it's the age of the republic baby
I think you meant to say fools.
It's a relatively rare malleable metal that humans have obessed with throughout recorded history.
It in and of itself is nearly worthless in most contexts outside a society that is under the common delusion it is worth something.
The US dollar gained status as a reserve currency because it is the Petrodollar (used globally to purchase oil), and because of America`s perceived economic strength in modern history. The DEMAND for a currency (thus its value) is dependent upon other nations wanting to purchase that countries goods or use that currency for purchases in general (such as oil). Likewise China and Japan purchasing so many US govt bonds because they believed the US govt able to pay its debts. That view is shifting.
Its more risky holding cash due to inflation
This made me make a thorough research on stocks more and have been investing in ETFs and index funds, then other financial commodities, I am 85% into my $400k goal for the year, I want to buy a house buy Christmas to celebrate a great turnaround in my life.
Hello, how can I get familiar with this
I would like to know how I can get in, maybe talk to an expert. Or any videos recommendation.
You can look up Mr Eddy Bruke
an Executive trade expert to get familiar and
acquainted with how it works, he’s the best in his field with excellent expertise.
Eddybruke .info .....
Should've invested in gamestop
@@americandreamer828 I’ve just started investing and started on ETFs. How did you go with buying your house?
Eddybruke(.) info
Taxation and the U.S. Governments monopoly on the production of Dollars is what gives the currency its Value, you have to pay your Taxes in Dollars which only come from one place.
brainwashing makes it valuable
The Fiat Dollar is an IOU.
The older dollars didn't have the name Federal Reserve on it.
It just read United States note/Currency or Silver Certificate.
All currencies that cannot be eaten are IOUs. Nothing has an intrinsic promise of exchange.
I want the Commodity money system back.
The note is not money. The note is a score for a game that is counterfeited. A debt note is a claim on the future. A silver dollar is a claim on the past I can hold, same with gold. Gold and silver is a precious metal, a claim on the past. The debt note is a claim on future labor that may be repudiated. You are very confused about what money is.
end the fed
The main difference is that commodity money (such as during the bretton woods system) created discipline on countries and states to act with scarce resources effectively. When the US ran deficits to finance war, countries started doubting that the US had enough dollars in gold reserves and started exchanging their currency into physical gold. This mean that you cant just run deficits in the commodity currency system, but you can run as much deficit as you want in the fiat currency system (look at US and Japan, the strong countries....)
As an asian,
I testify asian values gold
Yes virtually every race and culture on earth does. It’s beautiful, it came from the heavens via asteroids
The bogus fiat money is not the same as real money( gold & silver), because the value of real money is within the money itself, unlike fake money that has its value in the hands of few greedy men in New York.
I don’t agree with gold backed money but I agree that each sovereign government should print their own money not some scummy federal reserve
Hi❤
Silver and Gold is valued as money because of their durability as well. They are basically indestructible, so it is the best form of a store of value. This is the best form of trade.
Yeah...until we actually discover vast gold reserves in the asteroid belt, then gold will also suffer inflation
Durability is simply a property that makes it useful for the purpose of coinage. Imagine pointing out a basketball is useful due to the fact it bounces. Also, omits historical reference in terms of available technologies and that "silver" and "gold" coinage was almost always an alloy, often where gold/silver comprised but a small percentage of the material. Finally the unit not the material was always the standard, yet another lie of omission. All are examples of the mostly BS commodity money theory and common tactics used by shills. Find me a commodity money proponent who is not holding some bags in the commodity they promote. All of you should be shipped to island where you can "sell" each other your useless commodities and fables. Good luck creating any real value (in a monetary context) without human energy.
@@luckylui3282 Durability makes it useful for accounting. Pointing out that a basketball is useful because it bounces is a strawman's argument. A basketball manufacturer expends economic energy to produce basketballs. The basketball's usefulness is reflected by its price with respect to supply and demand.
If people were shipped to an island with gold they would function just fine. The gold is simply a tool that is used as an accounting system. Within the local ecosystem prices of labor increase, or the price of the gold reduces, depending on how you want to look at it. The local market auto corrects based off the supply and demand.
Money is an abstraction of economic energy.
Perhaps in a few years you visit the island and you notice that fish is worth an enormous amount of gold compared to your local market. So you decide to take advantage of that arbitrage by buying fish at your local market and sell it at the island for a ridiculous amount of gold but for cheaper than what they sell their fish for.
You do this over a period of time so the island is exporting gold and importing fish. The island's supply of gold starts to decrease and goes to you. The island's market dynamics shifts. The island's gold supply contracts and the fish supply expands. The island's local fishers expend time and effort to fish. Interaction with the local market allows everyone to communicate what their fish is worth; or any other commodities like fruits.
Fiat is currency and gold & silver is money.
Problem with fiat is giving control of our currency to the federal reserve and letting corrupt corporations be in power. Best thing to do is get rid of military industrial complex, central bank, big pharma. The world needs to use bitcoin because no ones owned bitcoin expect the people
Well, I'd have to disagree to the statement you made that "it's not a huge leap between the commodity backed money and fiat money". As we have all seen in the past 50 years it's actually game changing. Due to the fact that the currency not being backed by anything tangible, the central banks can now issue currency at their will. Not being limited by anything real is generating inflation almost by definition.
In Black's Law Dictionary 5th edition, the term "real money" is defined as metallic coins, made of gold or silver.
in normal dictionnaries, no
Silver and gold are just arbitrary metals that have been traditionally used as currency in different cultures. They just as easily could have used iron and palladium. However, you can't just print silver and gold. It anchors the currency to something physical and finite.
+mike Rodriguez wouldn't that just drive the value up?
You can't print silver and gold, but you can mine them
@@vincentwong1127 correct which is still based on labor and a finite resource. Unlike fiat paper currency or even digital currency
Taxation power is what ultimately gives the government the ability to print fiat money. It creates artificial demand for the government’s debt, which is collected and used to pay back that very same debt. Ever wonder why income taxes and the fed were established at virtually the same time?
Govt: here's a dollar bill
People: okay... But what is the guarantee that it is worth anything?
Govt: tRusT mE brO..
The recession of 2008 foreign investors played a part in stock market recovery. As the market fell by 40%, markets around the world started falling, then foreign investors started buying into the American stock market, hundreds of billions of dollars. Expert Stock market specialist, didn't know what was happening! They asked a foreign born stock market specialist, he said, "foreigners trust America's financial system, it respects property and rule of Law!" Almost 2 trillion dollars poured into the stock market! (Trust) Like NATO and EU. trust and shared values, like supporting Ukrainians!
Are you serouis, man? Gold and silver has value just because people beleive so? How about cost of finding gold? How about cost of withdrawing gold from the land? Can you do it for free? Come on.
How about the cost of buying a bitcoin? How about mining bitcoin from the computers? Can you do it for free? Come on. But bitcoin has value just because people believe it has.
Thumbs up if researching on bitcoin made you want to learn this.
Shouldn't note read LAWFUL TENDER instead of "LEGAL TENDER" just like the $10,000 bill ...on demand as authorized by LAW?
Doesn't our Constitution recognize lawful money as silver and gold anyway?
Commodity backed money limits government spending and stabilizes a country's currency.
We all work for digital cotton... I thought we already won the war against slavery?!?!?
🤔💡
Very smart way to put it. Digital cotton
One important thing not mentioned.
Every piece of gold or silver mined and minted means = more value per overground piece.
Every dollar printed and brought into existence = currency and every other dollar out there or in your pocket is valued less. Means less purchasing power.
nope, everything is subject to supply & demand. spanish empire once facing economic crisis due to inflation. what causes it due to oversupply of gold & silver from the new world mine just conquer.
those dollar can actually increase in value. it just the policy maker want to have a bit inflation so people will spend money instead of hoarding it. u can actually slowly print money in comparison to economic growth and it will causes money supply shortage and deflation=increase value of money
Printing money is appropriate for a growing economy. If there is no printing, money goes up in real value and that is called deflation - much worse than inflation.
My preferred form of currency is one backed by Brent Crude, or a unit of energy. The value would be stable during printing provided oil/energy reserves exist.
All fiat money only last 90 years .
The difference is you CAN'T PRINT no gold or silver thought
They probably can secretly with 3D printers...
I bet they still cant. @@kujjitafari8509
Would you get a fiat car? Might explain the depreciation on them...
The dollar was untethered from gold in 1971 I believe.
A detailed overview with real examples, love it! Do you think we should anticipate the return of representative money? Or would the society switch to digital unregulated currencies?
No offense, but america government force to trust fiat money, itc dollar
Money has value because you believe it does.
Commodity > Representative > Fiat
I dont understand: allowing banks to create money out of thin air when creating loans, how well is this controlled by the central banks and how? Central banks are not government organisations but are private institutions in many countries: no problem there?
Agree
The gold n silver costs money to get and coin and is respected longer than fiat
Gold and silver coinage is also called “sound” or “lawful” money which has intrinsic value. The coinage is the asset because it has weights and measures. We used gold and silver because they have 3 necessary elements: Store of Value, a Medium of Exchange and a Unit of Account. When the currency was redeemable the paper was a receipt. In 1963 when Kennedy wrote executive order 11110, he delegated the responsibility of removing silver out of circulation to the Secretary of the Treasury of the IMF (The Keeper of the Fund [Public Law]… not the Treasurer of the United States). That is why currency after 1964 is not redeemable in silver and the language was changed on the currency to reflect that fact. All the currency today is credit and not money. Note, it states it is legal “tender”, not money. It is illegal for a bank to loan you money. They loan you credit. When you make a deposit into a bank you are loaning your credit (currency) to the bank and if you make a withdrawal you are not calling in the loan. Recently, companies have wanted to not take currency and only deal with credit cards or some digital form. By law, if you receive a product or service the company has to accept payment with currency if you choose to pay the debt that way or you are not obligated if you tried to pay with legal tender and they refused. Finally, the law states that the U.S. citizen is responsible for the debt of the dollar, which means all those entitlement programs we borrowed credit and insured the national debt… you owe the payment. Good luck.
The danger of Fiat money is that it is created just as a mint wants, unlike silver and gold. This opens up a possibility to contol the money, and, ultimately, ourselves. In my opinion.
No sir Asia gives valuable assets of gold and silver coin I live in India and culture of India give much values silver coin and gold coin those who hold it...
But!!! Think about when we went off of the gold standard towards fiat money...and what was the result afterwards...as a kid...I heard the word inflation.....ALOT!!! to simply print more money because you want to fund a war effort and can do so because the standard has changed didn't mean that we have "skirted" around a consequence...We place value upon many things...I think Pokemon is childs play...my adult son does not...And pokemon had its day monetarily....If you ever you ever wanted to paint a picture of instability(which doesn't mean it will always be bad or difficult) having changed from the gold standard to the fiat system...is that painting.
Best thing to do is not giving corporations power like the federal reserve and companies in charge of military industrial complex, also big pharma
@Daniel Ludlow. EXACTLY!!!
This video was made on my birthday.
Annie Jin you want a sticker ?
Advocators of subjective value theory that praise Adam Smith tho LOL
why do i recognize his voice by his first words? 😂
Our money is just a iou note it has no backing.
F.I.A.T.- Federally Issued and Taxed
Fiat money gives too much power to the few. Controlling the money supply and artificially lowering interest leads to boom and bust.
Booms and Bust are a side effect of Capitalism. The type of money has little bearing on that.
Capitalism is based on the idea of voluntary exchange. When 50% of all transactions are conducted using a media that is forced upon the actor by coercive threats of violence, all exchanges contain a very meaningful non voluntary component. It is a struggle to argue that such a system is capitalism. If it is than in the best case is a very bastardized very corrupted version of capitalism. So no capitalism can not be blamed for problems that occur when it is not present.
Dr0pkidd that view is pure propaganda.
@Dr0pkidd WRONG! The fed is charging everyone interest. It has nothing to do with capitalism. Also, I'm willing to bet you don't know the difference between crony capitalism and free market capitalism and which one we have in the USA.
Look at the Constitution, Article I, Section 10, first paragraph. It says " No State shall emit bills of credit, make any thing but gold and silver coin a tender in payment of debts". That defines gold and silver as real money, and anything else is counterfiet, and unconstitutional. The govenors of all the States are sworn to uphold the Constitution, and are responsible for enforcing this requirement. Why don't we make them do it? Because most people in the USA, and around the world, are ignorant about how an honest money system is suppose to work.
Every countrys notes are promissory note
fiat money is valuable because the amount or value on the money/entry represents peoples promised labour and production
Still.. No intrinsic value besides the belief of being able to exchange it for a good or service.
@@jaydupree418 But gold doesn't have any intrinsic value either. You can't eat it, drink it or use it in any meaningful way. If you are stuck in a desert island with no food and water, but you have lots of gold, are you really rich?
Fiat money is the closest to "intrinsic value" you can get other than actually backing your currency with food or water which would come with its own set of problems
What if the government prints double the amount in existence every year?
Fiat is just a paper.
Gold works as currency because it doesn’t tarnish and is stable. Spoilage therefore wouldn’t be an issue with storing funds.
“Fiat money” recession/depression money.
It’s so much more to that story. Then you explained.
A federal reserve note which is neither federal nor does it have any reserve
A Complete Oxymoron, like a lot of things.
The dollar is backed by nothing
not true, it is backed by Debt.
gold is backed by nothing
what do you mean not backed by anything? it literally is backed by US govt. and more importantly, millions of people say it's valuable.
Dollars R backed by petrol oil witch is peacefully borrowed from 3th world countries by soldiers :)
which*
"in god we trust"
more like "in the Government we trust"
Read the first paragraph, Article one, Section 10, US Constitution. It is the supreme law of this land.
Americans used to pay other countries/civilizations in silver because they valued it more than gold. I think this was Native Americans and South Americans
Uh... how did this video miss the most important point of fiat money - that it is BORROWED from the central bank? The borrower at some later time has to get it back and repay his debt to the bank - this is the underpinning of its value more than its status as legal tender. So you can trust in its value because somebody else needs it. It is not just some shared illusion.
I still preffer the commodity money...i can turn it in for gold or silver when the dollars hits the floor
For commodity money ". . . the thing that you're using for money . . . has SOME value in it's own right." What IS that value, exactly? Does everyone agree on that value? Money is a social institution. You can't really understand money without that essential premise.
silver and gold are not valuable because of faith!for example, out of all elements known to man, silver is the most reflective of light, silver has the highest thermal conductivity of any metal, and silver also possesses the highest electro-conductivity out of all the metals known. gold also has some unique properties that make it extremely valuable. Gold is a noble metal, and does not naturally rust or corrode. Gold is also EXTREMELY malleable. For example, One ounce of gold can be stretched to a length of 50 miles; the resulting wire would be just five microns wide. I could go on and on about all the amazing things ONLY gold and silver can accomplish but you get the point. This is ignoring all of the history around gold and silver. I urge anyone reading this to look back in history at politics, economics, and the gold and silver monetary standards. you have to then extrapolate all of this data, and realize gold and silver ARE the money. they ARE inherently valuable, and there's a reason gold and silver have been raw, physical, tangible, ANALOG wealth for thousands of years.
The main idea is that Fiat money is much cheaper to print than commodity money, because commodity requires mining medals. Gold commodity would require excessive amounts of gold, and so fiat money is a quicker and cheaper approach because it's derived from trees. However, I think printing fiat money is, in a sense, a form of cheat because that money is not supported by any labor or work. The value of money is meant to exist through a relationship between labor and payment; therefore, simply printing money and declaring it legal makes it "fiat."
Fiat, in other words, means that the money was falsely and ilegaly added to the monetary cycle of labor and payment. Money is only supposed to cycle via workers getting paid, people buying products, or investing in assets. Money is not supposed to be secretly printed and distributed.
I don't know why the author of this video struggled so much to explain a simple concept. He almost made it harder to understand.
By the way, the gold coin with the Native American guy with the printed words, "Liberty" is highly derogative. They didn't experience a spec of liberty during the years of Thomas Jefferson
Gold is valuable because of its properties. Gold is gold for eternity. Paper money disintegrates. Paper money not backed up by precious metal is fake. They keep on printing IOUs. Who will eventually pay for IOUs and deficit?
Fiat means law. Congress decides what we use based on article 1 section 8 (handed to Fed). Commodity money failed. Digital money is fine as long as it is managed independently for the benefit of the people not private interests. The Fed needs to be reformed not ended and folded into the government, not privately run for benefit of banks in priority. Chicago economists in the 30s understood this and came up with the Chicago plan. Debt based money needs to be swapped for equity money (like Lincoln greenbacks). It’s an accounting and plumbing transition. Money’s value is determined by quantity, usage, military, confidence, productivity, property rights, and laws. One country could deem gold money and another could deem paper to be money, both would be by fiat. Money is inherently (by nature) law not a resource (sorry Adam Smith)
Wait, hang on. I know this is an old video but did you just explain currency came about b/c people didn't want to haul around the coinage? That it was just a contract on paper saying "Somewhere I have some Morgan Dollars you can exchange for this"? I never understood this until now!
knowing that you were not redeemed with corruptible things, like silver or gold, from your aimless conduct received by tradition from your fathers,but with the precious blood of Christ, as of a lamb without blemish and without spot.He indeed was foreordained before the foundation of the world, but was manifest in these last times for you who through Him believe in God, who raised Him from the dead and gave Him glory, so that your faith and hope are in God. - 1 Peter 1:18-21
You cannot redeem silver or gold.
Fiat, had this word any expanded form like fabrico italian automobbile turin(Fiat)
Thank you
Thank you TH-cam
Commodity is not money. Money is just a measure of value. The problem is interest. On commodity 'money' or fiat money. Interest is the fundamental driver of instability.
Wait-so, banks fail, government is bankrupt and can't back up their promise to pay, where are we then? What can fiat money be traded for if it has no value?
Great, now I'm panicking and want to start a commune and start back up with the bartering system.. I have beads.. beads are valuable to some.. Clothes, shoes ect..
It's been that way since the 70s and now you are going to panic?
Didn't expect to hear 3b1b here!
Umm. Federal reserve notes are backed in labor . Or rather by loans with labor or the tax value of labor as collateral .
Gold and silver are more rare than say wheat or potatoes or beef and sugar. Gold and silver are small compared to other commodities because of its rarity. Also gold and silver are durable and reusable, Gold is the best storehouse of wealth because it is unchangeable and will not degrade, more than any other element it is durable like diamonds, but even diamonds can be worn down and when this happens they can not be reconstituted like gold. Paper money now is regarded by good faith and credit in the issuer of that fiat currency. Loss of faith in that insurer and its poor credit, lets say they carry a lot of debt or are fiscally irresponsible not being able to live within a budget, then that currency is at risk of becoming worth less or worthless.
How about seeds as a commodity money.. think about it grows from trees and easy to carry.. nutritious
Been binging the channel for months now...who the fook is this?! DEC102022
you got the part at 4:10 wrong. silver and gold DO posses inherent value. gold and silver were not chosen for thousands of years by chance. the internet and computers could not exist without gold or silver
Is this 3Blue1Brown?
He used to work on KA
WAWZERS! YER OBSERVANT :)
7:37 No. Gold and silver are valuable not because of faith but because they are actually valuable. Fiat currency is completely based on faith
Money should be backed up by number of humans in a country, funny but I guess it's better rather than just faith or gold.
1 dollar = 1 robuc
Have you ever met an Asian. The love gold. Upset a Filipina and she will demand some gold jewelry. They are always upset.
Another difference is that gold and silver are resources that can not be produced, you cannot make more than the ammount that exists meanwhile paper money can be produced almost infinetely. This gives enormous power to those who have the right to print money as they control who gets to have more or less money and how valuable the money will become. I think we live in dangerous times because of that
Exactly any country who wants to trade without the US dollar will be seen as an enemy of the US. Because they threaten their global economic control. Also why france still has such a strong grip on its former colonies in west africa, because they use francs as their currency. Its economic enslavement.
Only if your stupid enough to keep using it.
Maybe I missed it..but why was it okay to turn the currency to a fiat money?...how did the citizens at that time respond to that change?...was it voted on?
Christine Jigau it was changed to better control supply and demand swing. Backed money is very rigid
Nixon in 1971 suspended the convertibility of the dollar into gold. That’s what happened
To be able to print money willy nilly for the ever expanding welfare state
I'd like to see a currency backed by energy - eg instead of a silver or fiat dollar note, you have a one litre Brent Crude Oil note.
Money can be printed and will cause it to loose value. All one has to do is follow the financial troubles this country has had since we left the gold standard.
Not no more if you can put $25 in crypto get $400 in a week that means Fia ain’t
Money is the same as saluting the flag ..doesnt mean a thing to the universe we give it value cant haul a bunch of gold and silver everwhere