[APLonDrugs]

"This is trivially true (all civilizations end, the sun burns out, nothing is permanent) but the relevant timeframe is usually one's lifetime, and the stability of the currency over that timeframe is more important."

Not sure it is Trivially, fait can go to zero, gold for example can not as there are other uses for it... Perhaps, like good design, the more timeless option might be the better:-)

You're paying that "interest" in exchange for a more stable currency" who pays for whom might be the better question with who is to benefit.

[encoderer]

You're actually paying that "interest" as actual interest to people who buy treasury bills.

Where did you think the interest on t-bills comes from?

So "who it benefits" is simple: Whoever buys treasury bills.

[camccann]

Well, a physical dollar bill has intrinsic value as well; if nothing else, you could burn it for energy. The intrinsic value is a minuscule fraction of the "official" value, but still nonzero.

The intrinsic value of gold is a lot greater, but probably still only a small fraction of its general market value; its very reputation as synonymous with tangible wealth serves to paradoxically inflate its value.

[amohr]

And the Deutsche Mark made great wallpaper. The intrinsic value of an object created for a lost purpose is worth less than the materials it's made out of.

Gold, on the other hand, has a naturally limited supply and has notable uses. It's reputation as a symbol of wealth is not only because of the cost, but also because there's not enough for everybody. If there was a limited supply of denim, we'd see a big comeback in Storm Riders.

It's like owning a Tesla - it's not just a $100k car, it implies that you're a somebody.