[rangerone314]

I have an idea: instead of fiat currency, and instead of basing a currency on gold or silver which are limited, how about fixing a currency to the value of a ratio of a group staple foods, like corn, rice, wheat and potatoes?

Thus you would never pay $1,000,000 for a pound of potatoes, due to hyperinflation.

[Cloud9]

Interesting idea. Sort of a barter system but using paper. How you you peg the currency to the supply. I think even in a crash, paper money which some have said is only 3% will retain some value. I read some where that even during the Russian Revoluton old Romanoff paper was still honered because there was so little real currency in circulation.

[rangerone314]

$this->bbcode_second_pass_quote('Cloud9', 'I')nteresting idea. Sort of a barter system but using paper. How you you peg the currency to the supply. I think even in a crash, paper money which some have said is only 3% will retain some value. I read some where that even during the Russian Revoluton old Romanoff paper was still honered because there was so little real currency in circulation.

[Chuckmak]

Sounds like an interesting proposition.

[mattduke]

The market did not select those items for use as money because they are consumed and they rot. Tip: never use the term "value" when discussing money.

[Tyler_JC]

I don't think you want to try backing a currency with something that fluctuates that dramatically.

There are 3 purposes of money.

1. A medium of exchange.
2. A unit of accounts.
3. A store of value.

Yes, you can use food as a medium of exchange. But it's a pretty lousy medium. My bike for your barrel of flour?

Unit of account stems from the store of value. If the store of value function breaks down, measuring your balance sheet in WheatDollars is foolhardy.

So it comes down to number 3. Is food a good store of value?

The answer is obviously no.

[rangerone314]

$this->bbcode_second_pass_quote('Tyler_JC', '
')
I don't think you want to try backing a currency with something that fluctuates that dramatically.

There are 3 purposes of money.

1. A medium of exchange.
2. A unit of accounts.
3. A store of value.

Yes, you can use food as a medium of exchange. But it's a pretty lousy medium. My bike for your barrel of flour?

Unit of account stems from the store of value. If the store of value function breaks down, measuring your balance sheet in WheatDollars is foolhardy.

So it comes down to number 3. Is food a good store of value?

The answer is obviously no.

[rangerone314]

$this->bbcode_second_pass_quote('Chuckmak', 'S')ounds like an interesting proposition.

[nobodypanic]

$this->bbcode_second_pass_quote('rangerone314', '')$this->bbcode_second_pass_quote('Chuckmak', 'S')ounds like an interesting proposition.

[rangerone314]

$this->bbcode_second_pass_quote('nobodypanic', '')$this->bbcode_second_pass_quote('rangerone314', '')$this->bbcode_second_pass_quote('Chuckmak', 'S')ounds like an interesting proposition.

[PrestonSturges]

You're on the right track, but if you rely on a commodity like wheat, the more you have, the less it is worth. In a drought year, the value of your currency would go up, even though you'd have less.

Even with government price supports, commodities go up and down 50% in value.

However, we might just be able to pay our debts in commodities, swapping them for a currency or basket of currencies that will be more stable and valuable than the dollar.

That raises the unpleasant prospect of domestic rationing, but that's where we were in ww2. Sacarfice on a similar scale may be needed to pay down our misadventures in Iran and Afghanistan.

[nobodypanic]

$this->bbcode_second_pass_quote('rangerone314', '')$this->bbcode_second_pass_quote('nobodypanic', '')$this->bbcode_second_pass_quote('rangerone314', '')$this->bbcode_second_pass_quote('Chuckmak', 'S')ounds like an interesting proposition.

[3aidlillahi]

$this->bbcode_second_pass_quote('', 'S')acarfice on a similar scale may be needed to pay down our misadventures in Iran and Afghanistan.

[PrestonSturges]

$this->bbcode_second_pass_quote('3aidlillahi', '')$this->bbcode_second_pass_quote('', 'S')acarfice on a similar scale may be needed to pay down our misadventures in Iran and Afghanistan.

[Caffeine]

$this->bbcode_second_pass_quote('rangerone314', '
')The PRICE of food has fluctuated but has PRODUCTION declined dramatically?

[Pretorian]

$this->bbcode_second_pass_quote('mattduke', 'T')he market did not select those items for use as money because they are consumed and they rot. Tip: never use the term "value" when discussing money.