In the coming dawn of civilisation, what could we use for money?
We can still use what we use now. Although we ought to consider them as vouchers rather than cash and tokens rather than coins.
So no actual physical difference, just a change in our collective attitude.
The real difference would be in how this simple change would impact upon our lives. No longer would a busy and much needed hospital be shut down due to a lack of vouchers. Just print some more, we would exclaim.
We would all still go to work, if we wanted too. If we could find nothing paid we liked we could do something unpaid. Vouchers, or their electronic counterparts, could easily be added to everyone's bank/social account each week. It isn't money, so what would be the problem?
I know of at least one critical thinker who may have just exploded in intellectual rage. Or may be not.
Inflation would be high, necessarily high. The over inflated asset prices would deflate slowly or even briskly but hopefully slow enough for people to cope psychologically to the new voucher system.
The best part of a voucher system, in my opinion, would be that it would generate debate on how best to allocate resources.
Pensions would now be a concern, a real concern. Individuals would have to think. Personal responsibility will be a solid foundation of this civilised society.
Gold and silver would not become money either. Someone with vouchers surplus to their needs may well purchase gold or silver as a store of wealth. However, should some people see gold and silver as money, then it could easily perform as money. Money is only an jdea, if you think something is money, then it is.
The current voucher system we currently use has a fatal flaw. An unavoidable deflationary collapse is designed in. If the banks and government delay this collapse for too long we get hyperinflation. Either way, numerically speaking, zeroes out your pension.
Now, here is the really interesting part of my little journey into the world of 'what if'. I don't actually have to persuade anybody of anything. I can view coins as tokens and cash as vouchers. I don't have to rely on a government pension. It is however, very annoying living in such a barbaric society when things could be so much more humane. You could say two percent of the population are spoiling it for everybody. Actually, the truth is 98% of people not bothering to critically think is a far bigger issue. Allowing the government to think for us won't end well. It will end. It will end slowly, as it has since 2007, 1998, 1971 or perhaps 1913 but then end abruptly, perhaps 2020, 2025 or 2030?
Timing when hyperinflation will occur is not possible as hyperinflation only occurs when the public lose their confidence in their own currency system. How can anyone predict that?
Bear in mind, the system came close to collapse one day in 2007. An abrupt collapse. Here the financiers risked hyperinflation and won. Each round of QE is another gamble. As is each change or not in interest rates. As is each bond issuance by any government.
The risk increases every day. The perception of risk by the public appears to be unchanging. That can change in a heart beat.
I choose an orderly change into a voucher system with the government self liquidating due to issuing vouchers freely to all rather than taxing people and stealing, unnoticed, from their pension accounts.
Will this gigantic system of control we call government self terminate?
Mankind faces a test. Will we mature and take a step closer to our potential or take yet another step backwards?
If we believe that governments will not voluntarily give up control then we must expect them to increase it as the financial system continues its deflationary collapse.
However, when sufficient numbers of people understand this blog and thus the world, I won't need to inform you of how force government into liquidation. They will liquidate it themselves. I am sure the surviving core of government will say that lessons have been learned. They won't have. They will just be waiting patiently for us to stop thinking critically, again!