Quote:
Originally Posted by Tightwad
To a point you are correct. The worlds economy IS based on a fiat monetary system that need the illusion of worth to function.
The root problem with a fiat currency base is that it floats on dreams of wealth with nothing to support it and now we're all in to deep to change it.  |
It is illusionary because the money is regulated and guaranteed by government. To remove the illusion you get rid of regulation and guarantees.
If you ask me, banks could be split into their components. A risk free storage function where there is no risk, no interest and the bank makes its money by charging you a service fee. The second function would be loans for interest. To take part in the reward of interest you'd have to assume the risk. Also, your money is tied down for the life of the loan or until you could get someone else to buy out your position. I wouls also add that the interest rate would be set by the market participants.
I find it absurd that we expect to earn interest yet we want guarantees. This contradicts the basis of 'Free Market Capitalism'!
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