On Money....Economics 101
Something I've noticed recently, even among Ron Paul supporters like myself, is that people seem to have forgotten that ALL money, whether gold, paper, electronic, or moon dust, is fiat. There is no such thing as "intrinsic value". (To those reading this who already know how money basically works, feel free to skip down a bit. The important bits that this explanation supports are marked below.) Let's examine this from a purely economic perspective first. "Value" is entirely subjective. One can only speak of the value of one quantity of a thing in terms of a certain quantity of another thing. In a barter system, you have individuals delivering goods and/or services (hereinafter, simply: "resources") in trade for other resources. The "value" of each resource is determined by the parties engaged in the transaction, and can only be understood, therefore, in terms of the other resource. For example, Ghassan the shepherd and Shari...