Sunday, June 2, 2013
As Sound as a Continental
Currencies have a finite life. Some are shorter than others. In the US, we don't use Continentals anymore. In fact, we've gone though a number of currencies in the last 200 years or so.
Federal Reserve Notes, (dollars) have had a pretty long run, but they too will come to an end. Why should this currency be any different that all the other ones in history? Look at how its value has been inflated away. Last I checked, compared to gold, it's worth something like 3% of its original value.
Don't confuse currency with things of value. They only have value if people are willing to exchange them for items of real worth: food, clothing, housing, services, land -everything in the real world.
It's an exciting time to be alive. Sure, we've seen minor currencies collapse in Zimbabwe, Argentina and other places. Odds are most of us alive today will see the US dollar fold too. That will be interesting as it's been a global reserve currency. Losing one of those hasn't happened before.
Countries tend to survive the collapse of their currencies. Governments, on the other hand, do not. At the very least there's major changes at the top.
Of course, it's a time of turmoil and chaos. Many of use do badly during chaotic times. However, there are a few who surf the chaos wave and have one heck of a ride.
Remember, it's just a currency. They come and they go.