Decades is very short term and fall into the time period I mentioned. Even cocaine produces short term gains.
It is a very short time on the grand scale of things but in the world of international economic development it's a very long time. Massive amounts of wealth is created in very short periods of time when market conditions are well constructed and well maintained.
Paypal comes up with PPbux, a new currency tied to 100% assets on hand (any currency or asset). This is a non-fractional system so the printing of our currency is not in paypal's back pocket.
Paypal can do what it wants with it's money, but when you log in it shows PPbux balance. When you spend in any country, the currency translation is done on the spot.
That's totally virtual, but pushed to market using pp debit cards and/or bank transfers ... what more do we need? After some time paypal can mint coins or whatever to start to make a push to take over.
/end example
If I were ebay/paypal, this is exactly what I'd do then make paypal bucks attached to it's reserve amount. Similar to a mutual fund, paypal gets to invest the balance and take some off the top. If they do well, my fruits multiply because when the conversion to USD happens I win. I guarantee my balance will follow a company that gives a return.
We're a looooooong way away from buying apples with anything but paper, but the transition doesn't have to be painful. And if companies are competing, they'll do a better job for everyone than a monopoly.
I hear what you're saying and it sounds pretty sweet. This kind of thing very well may be able to exist nationally, if not regionally or by state. I suppose it could exist on a corporate level too as you say, ala PayPal bux, Wal-Bux, etc. That's kinda scary on its face. Interesting economic implications depending on regulation or the lack thereof. In any case I don't see the Fed letting it happen right now - or ever - unless they control it.
Internationally though it simply is not feasible right now. The US Treasury is the only single entity in the world that has the ability to finance hundreds of billions of dollars of turnover day in and day out. To keep international finance going at this point there has to be some kind of way to potentially turn trillions of dollars into cash on the spot. Nothing on earth but the US Treasury can do this right now.
Not saying I like the predicament that the dollar is in, but at the moment I don't think it's as easy as opening financial markets to lesser currencies and hoping that will ease the pressure of dollar financing.
Not to mention that with derivative speculation on the books as it exists right now these currencies/companies would be blown apart in nanoseconds if they were integrated into financial markets. Or probably even if they weren't, really. Ironically one of the only reasons the dollar is still on its feet at all is because it's too big and too integrated with other currencies for speculators to kill it with credit default swaps and the rest of their hocus pocus. Although they're trying.
Obviously the only solution to our economic woes is starting WFBux, backed on the strength of the dickroll. What more do the markets need?
Gold is a good example because it's been used for centuries, in reality backing it with anything is good enough as long as the accountability to not print more exists.
What the buck is backed in is irrelevant, but something (anything) is a necessity as long as cartels and/or politicians are in control.
That's just it. I have to say though that even with gangsters at the wheel the world can't get enough of the T bill. S&P attacks the US credit rating and what does the world do? Buy US Treasury notes. It's still the safe haven in a panic even when a purported ratings agency tries to say it's not. I'm not a fan of the system as it lies but there's no denying that the US Treasury is the primary engine of world economics.
