05-22-2016, 04:35 AM
(05-22-2016, 04:22 AM)Kinser79 Wrote:(05-22-2016, 03:51 AM)Galen Wrote:(05-22-2016, 01:23 AM)pbrower2a Wrote: There is no magic in gold. Bismuth would do just as well.
Probably not. Repeal the legal tender laws that force people to accept dollars in all transactions in the US. I bet we would find out real fast what was really money. I am pretty sure that it wouldn't be Federal Reserve notes or other pieces of paper.
I'd say that the following commodities would likely pop up to replace the dollar at least initially. Cigarettes, Hard Liquor Alcohol, ammunition and marijuana. It would take time for enough specie to be put into circulation either through government or through private entities to replace the dollar. That said those four commodities have at least two features that a medium of exchange requires fungibility and intrinsic demand. Smokers will want to smoke, drinkers want a drink and I of course want herb--also bullets are good cause those who have all their assets either in cash or instruments denominated in dollars will try to take from those who have because they have not.
Yes, in the short term you are correct. I still would bet that gold and silver would come out on top. In fact it seems likely that a floating exchange rate between the two metals would arise which would eliminate the problems the fixed ratio bi-metallic system of the nineteenth century had.
Democracy is the theory that the common people know what they want, and deserve to get it good and hard. -- H.L. Mencken
If one rejects laissez faire on account of man's fallibility and moral weakness, one must for the same reason also reject every kind of government action. -- Ludwig von Mises
If one rejects laissez faire on account of man's fallibility and moral weakness, one must for the same reason also reject every kind of government action. -- Ludwig von Mises