Money Made By The Government Has No Future: How New Technology Will Make The US Dollar Irrelevant.

Governments are destroying the credibility of the money they make not the credibility of money.

Everyone knows that governments are printing and making digital money out of thin air. Inflation when it occurs is simply the market automatically revaluing the currency based on supply and demand factors. The more government's debase their currencies with economic stimulus dreams or just as a means of paying less for more of what they themselves buy the less credibility the currency has. In the past we did not have the Internet , the connectivity nor the amazing computer power we now have. What government used to get away with it may no longer be able to.

Back durring the double digit inflation of Jimmy Carter it was difficult for any to predict where inflation was going to lead us . Just a few large companies that owned modeling computers could correctly anticipate where prices would be in a timely manner. Stores selling goods could easily lose money because they could not reprice instantaneously. That is all changing now.. One can go into any store and take your own personal smart phone and scan bar codes and encrypted codes on packages and the price can come up . Well that allows prices to be automatically updated constantly and means most stores will not set prices so they can lose money from inflation and even workers on an hourly wage will be able to have their pay rates updated second by second to reflect the changes in the consumer price index. Government thinking it can get away with stealing and transferring wealth with inflation will have a much harder time getting away with it. People who want to make loads of money will simply borrow funds to counter act and leverage inflation to their advantages with banks having better computers to model that so that the advantage financiers used to have will disappear. Every price everywhere can re-adjust automatically. That won't be the end of the currency but will send people looking for a viable alternative.

People will soon learn that the medium of exchange in pesos, dollars, yen , euros, no longer mater. And that is because people who work by the hour at a job can value their time in a universal barter scheme thanks to the incredible computer power we now have. The online dollar will be based probably on some arbitrary minimum wage unit per hour. Some jobs will pay 5 minimum wage units per hour or more and many will just pay one minimum wage unit per hour. That arbitrary number could be worth what it is now dinner for one person at a reasonable restaurant or for 2 at the grocery store. What happens next is all the commodities then have an inter-relation of value on a sliding scale because prices go up and down in one commodity verses another based on market prices and underlying supply and demand. So each minimum wage unit per hour would be convertible into a virtual number of different commodities including the old dying currencies like dollars. Minimum wage units per hour will vary by country just as they do today . What would the advantage be? Government could not find a way to tax any transactions that don't go into the traditional currencies. No one would want to fund the government to play the inflation game anymore. Pricing would be automatic but no one would have to make a purchase unless they liked the number of work per hour units they would have to spend. The purpose of government would then be understood by people as forcing them to work to pay for goodies for government. The illusion that money as a medium of exchange is something other than labor will disappear as fast as anything ever has vaporized on earth.

The only reason this is becoming inevitable is because governments are destroying the credibility of their own currencies. The currencies are a major historic advancement over the old system of barter or using gold or salt to pay for items. If an item you wanted to buy cost 5/7ths of the value of one size gold coin you would have to cut that size gold coin into several pieces one at least 5/7th the size to give to the seller and one piece at least 1 minus 5/7th the size of the coin to keep as change or to get form the seller for the whole coin in the purchase. Now if that sounds complicated it is and it slows down commerce. That is why most currencies are based on units that can be subdivided into smaller units like pennies to make change for all kinds of transactions. Computer power with digital money now makes even the tokens of money unnecessary. Not even gold is necessary as a token as a basic medium of exchange so a few clever computer people with their algorithms will come up with a much simpler way to convert anything of value into anything else of value by simply creating a universal market of interchangeable prices. There are millions of different items for sale on earth some as big as a brand new jet aircraft . Well it could be worth 700 ounces of gold and ten tons of wheat and a can of asparagus or interchange any of those three for what ever you wanted to pay for the jet and the seller was interested in getting in return. But that does not mean you have to own the gold or the wheat or the can of asparagus. You can just automatically have the computers linked to gether link all kinds of transactions instantaneously so everyone gets what they want with out the use of any government currency. The only reason anyone would convert to a government currency would be to pay taxes but do you really believe that governments that totally devalued their official currencies would want to receive that currency in payment? No way.

We are going to move from soviet style economic planning government and from the stupidity of the federal reserve gurus automatically just as stated because the US treasury, the federal reserve and most of the rest of the governments including even Switzerland and Singapore are making the money they mint worthless and irrelevant. So it is a libertarian economic future that will be at hand. One day the federal reserve chief will start buying more worthless bonds with worthless money and no one will give a damn or even notice. The key of course is what i have invented. The minimum wage unit per hour. It is not the government minimum wage but the actual minimum wage or actual value of an hour of labor for basic labor which would be defined as fair voluntary labor . That does not give everyone the same wage but allows people to price their labor in units of that basic unit so that a doctor earning $400 an hour might be getting 40 minimum wage units per hour and the manager getting $80 an hour would just get 8 minimum wage units per hour. It is all based on voluntary agreements just as the reality of markets has always been based on voluntary agreements or by more formal contract. Who would ever want the dollar , the yen or the euro then when money would buy more without government taking a cut of every transaction. Don't think there could be no taxation. A simple 2 percent tax on every transaction no mater how big or small could get skimmed of the top easy as pie with out anyone hardly noticing it happened and that amount would limit government and its' expenditures to the best their economy could do for them. Government might have no choice but to accept consumer willingness to cut the government into transactions.. This is why the US government and the UN want to take over the Internet because it could be their worst fears coming true of people voting with their money automatically against the gooney interests of imperial ever expanding big government.

Watch out Uncle Sam. The people around the world accepting US dollars are on to you. You can print and digitize into existence way too many but no one has to accept them anywhere on the planet! Worst of all for you Uncle Sam , is that people are all super intelligent now with super computing power in the cloud on their smart phones. They can all have access to alternative currencies to the US dollar. None of this means the US economy has to collapse.

The US dollar is not what makes the US the richest country in the world..No it is just a medium of exchange to evaluate and price everything of value in the economy. It is a measuring stick that is completely dispensable if we want to dispose of it as a very large group of participants. The medium of exchange in this country and all others is just our ability to produce goods and services that other people need or want and that they have reserves or have to work for and currency might as well be plastic money or just chips on a table or sea shells. Now that it is digital well it can become completely irrelevant because inflation causes people to rethink the value. In the US we have millions of different products and services for sale all are essentially commodities that are interchangeable. our advanced computer power can relate everything to everything else with prices all being voluntary. And that is the end of the financial system as we now know it without any big crash or unnecessary revolution just a quiet desire to make one's work and one's savings worth what they should be. It will happen very fast once it does. Remember the Internet is really less than 20 years old and it has revolutionized almost everything already .





Comments 3 comments

rmtappin 3 years ago

Lex, you have a fascinating mind! For as long as I can remember I have been hearing theories about the demise of the US, the world's monetary system and the coming One World government. I am a pragmatist who believes that what goes up must come down - and all great civilizations have followed that maxim, thus eventually it will happen to the US. It is a biblical principle that the last shall be first and the first shall be last. However, you posed a fascinating theory on the future of money and wages, etc. What do you think of bitcoins? Do you think it - or something like it - might be the answer? Here is the link: http://bitcoin.org/

RM


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The Lex Blog 3 years ago Author

what goes up does not come down necessarily. The Roman empire and ancient chinese imperial familes lasted centuries or millennia depending on how you count because there are different dynasties and well the capital moves from place to place with the dynasties that take charge. Rome lasted over 2000 years. It was 300 years old probably by the birth of Christ and it survived until Constantinople fell to the turks. Counting the communists as the latest dynasty of china its over 4000 years old maybe 7000 or 9000 years old. The United states has been too successfull to just crumble and go away. The dollars is still the world currency and it is not just because of bretten woods as george sorors might tell you out of his own self interest. The dollar is a powerful currency that is a world currency and it does not go zero just because of inflation it only gets reduced. The US has more different kinds of currency than most countries do. I can trade cigarettes made in the USA for virtually anything of value overseas. Americans used to take levis jeans to Russia with them because those pairs of pants could be traded for hotel rooms of the best hotels and an almost unlimited number of rubbles if you wanted stupid worthless rubbles. Saudi Arabia does not give much of a damn what value the dollar has because they can trade crude oil and natural gas for just about anything they want with or with out the dollar . The dollar is just a convient indicator and medium of exchange. but it also comes in handy. If you want to buy a boeing 777 airplane it takes dollars. if you want otis elevators in your 1000 story skyscrpaer you need dollars to buy that. If you want military planes from lockheed martin you need dollars and if you want to buy half the shares of twitter and citicorp you also need to convert to dollars. You convert to dollars and rid yourself of them before they lose value. Other commodities do lose value. Oil is possibly going to suffer major deflation and hurt saudi arabia worse than owning dollars by owning crude oil becasue the US now has more oil and gas than saudia arabia with canada and mexico added in and china becoming the largest natural gas place on earth after fracking gets there The saudi economy is going to go into a free fall unles they find cleaver new ways to monopolize something. Well they do have a monopoly of Mecca and pillgramages there.


rmtappin 3 years ago

But you just proved my point about what goes up must come down... the Roman Empire and other dynasties may have lasted thousands of years - but they eventually fell! Yes, their influence lives on in Western governments, but they fell, nonetheless. So did China... although thanks to the stupid, greedy capitalists, she is rising again. As Churchill said "China is a sleeping giant - beware when she awakens!"

And yes, money is going to be around in some way or another. If we blow ourselves up, survivors will still find some way to trade for what they need. Money, in its broadest sense, can be anything that is valuable to another person.

RM

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