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Old 07-03-2019, 12:48 PM
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58pinson 58pinson is offline
Al Wright
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Join Date: Jul 2016
Location: NJ
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The question of why someone would trade food or water (or anything elso of value) for worthless metals has been brought up several times in this thread, most recently in regards to Venezuela.

Let me imagine that I am in that country now and in the business of selling food. The current exchange of the Venezuelan Bolivar to the US $ is .10 cents.
If someone has 1,400 of these jelly beans (I mean VB's) that equates to approximately $140 US$ in purchasing power. If someone, on the other hand, has a one ounce gold coin, that equates to $1,400 US$. If you are the vendor and your business is selling a commodity (in this case food) would you rather accept paper currency that is in a state of extreme flux or a gold coin that is recognized as having a store of value everywhere in the world for centuries? I want the gold coin everyday of the week and twice on the proverbial Sunday. Not when everything is going smoothly, but when the bad stuff hits the fan. There is no longer any confidence that the paper you accept today will have anything like the same purchasing power tomorrow/next week. When paper currency is reduced from a state of fiat currency that prevails as long as the users have confidence in it's issuer, into a blatant out of control street hustle con game it loses it facility to carry out day to day business transactions. Just my take on things, I am perfectly amenable to everyone holding their points of view and realize that I am in a distinct minority in the USA (at least for now).

Last edited by 58pinson; 07-03-2019 at 12:50 PM.
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