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Simcountry is an Online Digital World where you are the President of a country.
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Social Security index (Fearless Blue)

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CorSec Authority (Fearless Blue)

Thursday, April 14, 2005 - 08:29 am Click here to edit this post
''Money is merely a number, it has no intrinsic value''

-this (Sheikh)is contradicted by this:-

''Only slightly. Gold bars at Fort Knox weren't being used to make anything. They are a precious metal, and yes, at one point our currency was backed by gold. However, the currency is not now backed by gold. It is backed by its own buying power. ''

-ok, you're saying that you're still right because the currency was moved away from the gold standard in the 1970s. until then, ALL currencies had been backed by gold (or your ability to steal gold from others). that makes gol-backed currencies the universal standard, i would've thought. let me talk about today then.

today all global currencies are defined in terms of the US dollar (which up until a few decades ago was pegged at ~$35 for an ounce of gold). the US dollar is defined partly in terms of something unique:- the political, military and economic hegemony of the US, which is 'as good as gold'.

what i'm saying is that at the centre of our global economic system is a tangible political arrangement. it used to be the supply of gold, today the buying power of the US dollar (and thus, the value of all other currencies) rests on the ability of the US to convinve the world that it will remain politically supreme. this political power can itself be reducible to one resource- US military power (and all the sub-resources of that, like technological power). just ask George W Bush.

''Money is valued solely by the demand and supply of the currency''

-you're saying that currency relies on faith. i'm saying that backing up that the currency are men with very big guns. part of the reason that the US invaded iraq is that saddam had changed valuing oil in the petrodollar to the euro. the US wanted to demonstrate to those filthy arabs that the only unforgivable crime is to stop backing the buck.

all currencies must rest on something physically and socially tangible. your supply of gold, your power to steal gold or your *power to kick ass*. dovetails into the point about profit-from-war quite nicely, doesn't it? :)

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