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by sgt101 472 days ago
I think this shows the problem of non fiscal pegs - the value of rare earths or duterium is going to be impacted by technical change. For example let's say that a new processing technique means that a rare earth can be extracted at 20% of the current cost, or a new deposit is discovered. The whole economy is now flexed around this change... which has nothing to do with the economy.

I don't think that there is a fixed asset that could be suitable as a proper peg.

2 comments

Helium? Finite supply that is only going down until we get off planet.

It seems like the actual value of gold is that it is useless, and thus not used up, and all the easy gold is extracted. We could just use numbers instead.

In fact there is no figurative gold standard for value or money. A pokemon card or let's say a banana duck-taped to a canvas can have a lot of value. All there is, is reputation and trust.
Land?
Not fungible.