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I had $22K in the bank and my old SUV was still working fairly well, so I didn't buy a new one. I just went home, safe in the assumption that my $22K in the bank was as good as a new Ford SUV. In fact,as the weeks went buy I even told my friends I had a "paper SUV">
I had $22K in the bank and my old SUV was still working fairly well, so I didn't buy a new one. I just went home, safe in the assumption that my $22K in the bank was as good as a new Ford SUV. In fact,as the weeks went buy I even told my friends I had a "paper SUV">
in the bank. All I had to do was "call for delivery"!
The driving force behind this dynamic is in ours and the world's perception that these dollars are paper versions of "real things". This is the bedrock of a fiat currency and gold futures.
The driving force behind this dynamic is in ours and the world's perception that these dollars are paper versions of "real things". This is the bedrock of a fiat currency and gold futures.
Everyone, through trading or just plain old interest on CDs has built up an ever larger holding of "paper delivery notices" in the form of $ credits. Like above, these "paper SUVs" have been inflated even as the ability to supply real goods produced in the US, has stayed the same
