Jim Devine writes:

>> Why would one not believe in fiat money? is the US government (the
>> issuer of much of the stuff) about to go broke, fall apart in a civil
>> war, and/or be replaced by a congress of workers' soviets?

I know you are a smart guy, so I am sure I am at fault for thinking "what is 
Devine thinking?"

The issue is not "belief" in fiat money -- fiat money is money.  The question 
is whether one should believe that fiat money will retain its value compared to 
commodity based money.  I think there is plenty of evidence for reasonable 
people to believe that, over time, a dollar of fiat money is going to lose 
value (i.e. one dollar today will buy more goods and services than one dollar 
in the future), while money linked to a commodity (e.g.. gold) will not lose 
its value over time, especially compared to fiat money.  Is that really 
controversial?

David Shemano

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