denmason's blog

Aug 23 13:44

Synthetic wealth

Apparent synthetic wealth has artificially and temporarily been created through the production of paper. Whether Federal Reserve IOU notes (the dollar) or guaranteed certificates of confiscation (treasury notes & bonds), it needs to never be forgotten that these are paper.

It is not wealth. It is someone else's obligation to deliver... that wealth to the holder of the paper based on what that paper is felt to be worth when the obligation is required to be surrendered.

It must never be forgotten that fiat paper is only a counter party obligation to deliver. Will they? Unfortunately, since fiat paper is no longer a store of value, it is recklessly being created to solve political problems.

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