While many currencies have gone off the gold standard for a short time, we are living in a unique time where the entire world is now using fiat currencies and has been for many decades. Before 1971, the US was on the gold standard and many countries pegged the value of their currency to the US dollar. On the day that the US went off the gold standard, every country that was pegged to the dollar also went off. While simplistic, it's partially correct to say that the entire world switched to being fiat currencies on August 15th, 1971.
It's now clear to some that we are nearing the closing chapters of that story. The date is unknown, but there seems to be a feeling of inevitability. The words "full faith and credit" are starting to feel like irony.
I don't know about you, but I see my grocery bill going up every weekend. While I am fortunate to be making a wage at all, I can see that the wage I am making is buying less all the time. I know this contradicts what the government tells me. They tell me other things. They tell me things that don't match what I see and experience. The news people show me things that look bad and tell me they are good. I used to trust the news anchor that told me the news every night on TV. These contradictions bring me a level of discomfort that is like a splinter in my mind. As a good citizen, I want to believe my government, but I also see the Safeway, Walmart, and Target receipts every week as well. They are going up. I see the receipt total, purse my lips, shake my head, and sigh. Today, I am going to JCPenney because my work clothes have holes in them and are frayed. We'll see how that goes. I ate more Mac and Cheese this year too and it always makes me feel terrible, physically. I'm not young anymore. I wonder if it is hurting me. I don't quite understand why I am eating it. I just realized we are now eating it weekly as a family. It just seemed to happen.
I abide by the laws of the land. I always wear my mask because they tell me to. I always pay my taxes and obey the speed limit. I, like many people, use dollars because I am forced to. It's what we all use. They are used everywhere and for every thing. However, as soon as a better option comes along, I'm going to take it. Regardless of what all the economists say about deflationary death spirals, as a user of a money, I will always opt for the money that either holds, or grows in value, if given the choice.
Choice, that is an interesting world. I often worry how long I can make my own choices in a country making other choices that are getting more and more worrisome all the time. I think it's very far fetched, but does there exist a possible future where my family walks across the southern border with only the clothes on our back and a memorized 12 word seed phrase? I have heard this scenario more than once and it scares me. I don't have much money and can't speak the language.
Gosh, I hope not. This is my home. I don't want to leave it.
Submitted August 09, 2020 at 01:53AM by freebit https://bit.ly/3ijH5Na
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