What the Fed won’t tell you
There is something the Federal Reserve won’t tell you.
When you buy Bitcoin or spend dollars at the local grocery store how much effort does it take to imbued the currency you are using with value? Not much I would guess. You simple assume the currency has value and because other people believe the same as you it does.
This lack of effort in no way negates the remarkable ability people have to give value to money. It is so easy that the process passes practically un-noticed.
The same thing took place for thousands of years in maintaining a stable value for gold and silver.
Even before the invention of coins in Lydia in the 8th Century B.C. people needed a stable means of exchange. Therefore the weight of metals came to represent a stable value. This meant that year after year, 3 ounces of gold was, say, always worth 5 sheep or 60 bricks. In a year when 3 ounces of gold would only buy 4 sheep that was because drought had reduced the supply of sheep rather than the value of gold had changed.
Like the creation of monetary value keeping gold and silver at a stable value took so little effort that the act of maintaining this stability passed practically un-noticed.
I don’t know why the act of creating monetary value or of keeping that value stable takes so little effort. But there is a big problem with it passing un-noticed.
Because people are not fully aware that they create monetary value and can maintain the stability of a currency, they assume this power is vested in some external authority. This gives governments and their central banks a mandate to issue and control currencies on our behalf. A quick look at history shows this has not been a good idea. (I would suggest the first few chapters of Nathan Lewis’s book Gold The Final Standard.) Even the first coins from Lydia were an attempt by the government to pass them off for a “face value” greater than their weight.
The debasement of currency comes to an end as people wake up to the fact that they have given money value, and maintained its stability all along.
The return to stable money is therefore empowering.
To assist in this wake up process I suggest we have a declaration on each note we use. Perhaps it can read something like this:
“I acknowledge the value of this money, and its stability are created by me and the others with whom I transact.”
That would probably be enough to get the ball rolling. In fact Saver Token, the world’s only stable money, has something similar on its website:
“Like all currencies, crypto or fiat you create the value of Saver Token. You are also responsible for maintaining its stability. For thousands of years people have had stable money because they expected gold to have a stable value. The same approach now applies to Saver Token. Only buy Savers if you are committed to trading them at or above the Target Price based on the US Consumer Price Index (CPI-U). This shared self-interest and self-discipline of token holders is what keeps the value of Savers stable. It is your responsibility.”
Why do you think the Federal Reserve would not want you to know where the source of monetary value and its stability comes from?