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msla 2 days ago

Hey, so does gold-backed currency!

How do you know how much gold the government is holding? Ask them!

How do you know the government isn't lying? Ask this question loudly enough and meet people with guns!

eru 2 days ago | parent | next [-]

That's why you should bank with private counterparties, not the government.

If you buy eg a gold ETF, you can ask all these questions without any guns coming out. You can also go and exchange them for physical gold whenever you feel like it. Without any guns coming out.

If they break their promises, you can sue them. Without any guns coming out.

philipwhiuk 2 days ago | parent [-]

> If they break their promises, you can sue them. Without any guns coming out.

Providing you and they are in a country who is prepared to use 'guns coming out' to enforce the outcome of said suing.

eru 2 days ago | parent [-]

Private contracts are a lot more robustly enforced in most parts of the world than promises of the government.

You can also do jurisdiction shopping: many companies deliberately contract under eg London law instead of local law.

philipwhiuk 2 days ago | parent | prev [-]

Welcome to "monopoly over violence" - it's only been around 12,000 years or so.