The Value of American Debt Money
© M7C 2021
Think of the USA Currency value as a Cake. Each printed paper Dollar is a slice of that Cake. The more you print the thinner the slice. This means the more you print USA Dollars, the less the value of the Economy. USA Currency is based on debt, as in “This Note is legal tender for all debts, public and private.” Long ago precious metals (Gold, Silver, Platinum, etc.) backed or supported the value of that Cake. This is no longer the case. The value is based on Economic Performance (the NYSE Stock Market). If USA cannot pay its debts, from borrowing whenever it needs currency to pay for projects – like Health Care, Social Programs, Weapons, etc. – then the value of that Cake decreases, the value of the Dollar decreases. The Govt. could pay using precious metals, if they had any, but the face value on all Silver and Gold coins is so low it would never make a dent in the Debt. Silver coins are “$1-One Dollar” and Gold is either “$5” or “$20.” One suggested printing up a “Trillion Dollar Platinum Coin” for resolving debts; or Mortgage States temporarily, and has the States repay this later.
Paper Money has a History of abuse since its invention by the Chinese who printed on silk paper in place of bronze, silver or gold coins centuries ago. Credit card abuse is similar. Paper Money is Credit. In USA it was a temporary substitute for precious metals when such was not available or in stock. Crypto-currency is similar and is a piece of computer code stored on a computer; it is ideal for criminals because it cannot be traced. Though anything can be a currency – books can be a currency if you buy enough of them. The value of knowledge surpasses metals.
© M7C 2021
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