me: >>>> Could the state back its paper money with sand, for example?
Sabri:>>> Sure, why not? What does the US back its money with now? me: >> its military might, etc. raghu: > I seriously doubt that the PRC is hoarding dollars instead of say, yen > because they are afraid of military retaliation. > > The dollar has some important institutional advantages and all the > force of inertia of a long-established standard that has nothing to do > with US military might. all of that is implicit in my "etc." I'd written about that already and didn't feel like repeating it. However, I don't know how long the inertia will keep the US$ as the world money if (1) US military, financial, and industrial power fades and (2) there's an obvious alternative besides the gold standard. -- Jim Devine / "In an ugly and unhappy world the richest man can purchase nothing but ugliness and unhappiness." -- George Bernard Shaw _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
