Every fiat currency looses whatever perceived value it may have when people identify with an alternative at a higher superficial value. While beauty is surely in the eye of the beholder, so is value. Fiat paper currencies are mediums of exchange and nothing more. They have no greater value than what people place on them because they have no fundamental worth. They’re just pieces of paper representing no assessment other than what people perceive their worth to be.
We Texans look at things in a simple and common sense way. We don’t measure how full our hay barn is by Wall Street manipulated charts or banker’s appraisals. In all reality, a bale of hay has a natural intrinsic value. It can feed a certain amount of animals for a certain amount of time; or it can be exchanged for something else of inherent value, such as a bag of oats.
If you took that bale of hay and exchanged it for a paper currency such as a FRN$ (Federal Reserve Note dollar), you can’t feed the animals with that paper. It’s worthless paper in and of itself, unless you consider it an important accessory of value for the outhouse. The only way to get a value from that fiat currency you now hold is to hope someone who has oats or feed or hay will exchange them for your paper.
The problem with non-redeemable fiat paper currencies is that their substitute value can be high one day or worthless the next. The paper currency that’s printed by the private bank known as the Federal Reserve System only holds the value each person places on it. One bale of hay may be worth FRN $1 to one rancher, while another rancher will accept no less than FRN $100. Otherwise, it has no significance except what each person places on it. It can’t even be redeemed for lawful coin money.
Perhaps a new valuation chart should be published called the Outhouse Currency Value where people would value each paper currency by how many times they frequent the outhouse each day.
Outhouse Currency
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