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by vkou 1901 days ago
Stocks are not coupled to fiat, fiat is just the common medium of exchange for them. Nobody will stop me from trading my GOOG share for a goat, or a baseball card, if I so choose.

Stocks are coupled to the productive output of the firm the stock is issued by, which is coupled to it's real world productivity - which, again, for convenience is measured in a fiat currency.
1 comments
JumpCrisscross 1901 days ago
> Nobody will stop me from trading my GOOG share for a goat, or a baseball card, if I so choose.

Nitpick, but the SEC would object to that. That said, American securities regulation has a unique philosophy, i.e. every securities trade must be registered and follow a narrow book of rules unless specifically exempted.

Your broader point, of financial and real assets being proven hedges against inflation, stands.

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tome 1901 days ago
The transaction must be denominated in dollars, but must dollars actually change hands? I don't think so. Companies buy other companies with stock issues all the time.
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JumpCrisscross 1901 days ago
> transaction must be denominated in dollars, but must dollars actually change hands?

I believe it's the other way around. It can be denominated in anything, but trading e.g. the deed to your house for some Apple stock is a no no. (Doesn't have to be U.S. dollars, though.)

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