Why do currencies not back by gold eventual lose their value? Why doesn't GDP preserve the value of the currency?

Similar questions: currencies back gold eventual lose GDP preserve currency.

You asked this question in different way before. The answer is still the same. The value of the dollar changes because money is a commodity.It can change in value and erode over time.

Money is not math and math is not money. You can look at money this way. If you have four apples on your kitchen table.

You go to the store and buy four more apples, bring them home and put them on the kitchen table. How many apples will you now have on the table? If you use math, you would say eight apples and you would be correct.

Now, what if you left the apples on your kitchen table for 10 years. Now how many apples would there be. The answer, most likely would be none.

That is because the apples would disintegrate over the ten years. Apples are not math and math are not apples.An apple is a commodity. Money is a commodity.

It has no value itself.It's value is based on the US monetary system and all the factors that impact the value of money. These are the eroding factors of money:1. Inflation2.

Taxes3. Technological change4. Planned obsolescence5.

Financial expense6. Lost opportunity cost7. Interest rate decline8.

Stock market decline9. Loans and interest charges10. LawsuitsSome in this list will change the value of money for everyone and some will just impact you.

I found your answer to be the most convincing. However, your not as strong as Ron Paul in the solution. What are you afraid of?

GoldenLion 1 month ago .

Long term, it can. Daily it is a comodity and has price changes like all other comodities. Mostly psychology and news.

Why does the currencies not backed by gold decrease in value, long term GoldenLion 1 month ago .

I do not have enough data to discuss that point.

You've asked this before. The answer is still the same. There isn't a country with currency backed by gold anymore.

I still don't understand and the answers were not convincing GoldenLion 1 month ago .

Oh Okay to make you happy, world currency is backed a gold or silver standard. There you go.

You seem to understand how central banks function GoldenLion 1 month ago .

I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.