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Re: Re: Free trade - a debate



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Please help make the Manifesto better, or accept it, and propagate it!
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congratulations Mr MV,
you just stumbled onto the biggest fraud in history - fiat money, i.e -
money being so only because the government says so. All Money used to be
pegged on a certain sum of gold /silver. Infact the words pound and
dollar reffered to certain weights of precious metals. Ever since the US
dissociated the dollar from gold, no other currency is pegged on a real
value. All the float in the world of dollars, euros, pounds, is all
currency with no base in real wealth. they depend  on the ability of the
governments to tax their people and restrict their own printing presses
of money.

regards
prakash

Now let us define the value system of currency....

For eg. the Rs.100 currency has value because,
the governor of RBI says "I promise to pay the
bearer the sum of hundred rupees" and this
promise is "Guaranteed by the Central
Government" of India.

Most other currencies are also backed by
similar promise/guarantee. What is it the
RBI governor is promising, when he says *sum*
of hundred rupees? for eg. If someone goes to
RBI governor and gives Rs.100 note and ask for
"Sum of hundred rupees worth of rice" how will
he calculate how many kg of rice to give?

For people using different currencies to decide
the value of their goods and services all currencies
should have a common value system, isn't it?
As per current economic theory what is this
common value system?

MV.



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