Hyperinflation Warning
POSTED BY: out2theblack
UPDATED: Saturday, August 8, 2026 19:27
VIEWED: 4736
PAGE 5 of 5
Quote:
As in the above example, watermelons will always have value, but if a farmer has a thousand unsold watermelons they soon become worthless. Trading watermelons for gold enables the farmer to store his watermelon wealth because he knows that others will also accept gold in exchange for their produce.
A watermelon would seem to not have worth until someone wants one. A thousand watermelons has no worth if no one wants one. Watermelons go bad, so if just one watermelon gets traded/sold, gold allows the farmer to retain something from the effort of raising the watermelon, in a form of wealth that doesn't go bad.
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What's to stop people from treating clothing, fabric, and other non-perishables the same way? I mean, that's the way silk, salt, and spices used to get treated. In fact, "salt" is where the word "salary" comes from.
I think the key word here is "agreement." Unless your society agrees to place a value in gold, there's no value. So you guys talking about investing in gold, if other people around you see value in gold and can work the gold, and there are also people who can provide basic goods and services who agree to place value in gold, you're fine. But if you have gold in a place where no one is accepting it, or there aren't basic goods and services, you're going to have a problem.
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Again...
In Siberia... the currency is bullets, and vodka.
However, im sure you can find someone to trade you bullets and vodka for gold.
"Being called a racist by a Liberal is a badge of honor."
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Quote:
Originally posted by Bytemite:
A watermelon would seem to not have worth until someone wants one. A thousand watermelons has no worth if no one wants one. Watermelons go bad, so if just one watermelon gets traded/sold, gold allows the farmer to retain something from the effort of raising the watermelon, in a form of wealth that doesn't go bad.
People always want watermelons. In a particular locality that is watermelon rich their value may be reduced, but as long as trade is posible someone somewhere will want them. If I'm a trader travelling across country to sell my goods and I come across community that wants my goods but has nothing that my home comunity needs, I might accept gold in the hopes that I can use it later for goods that will have value in my comunity. On they way home I happen to see a farmer selling watermelons at a ridiculously low price because of surplus of melons locally, so give him some gold and take the melons to my comunity were they are in great demand. Gold facilitates the efficient trade of goods because barter is not always possible when all you have to trade is watermelons.
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Don't forget booze as currency - not only does it have minimal storage requirements and a long shelf life, it's value actually increases as you hang on to it, much like interest.
In fact, the capability to produce alcohol as a consumable for other uses than drinking is an invaluable skill when things get ugly.
-Frem
I do not serve the Blind God.
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How the War in Iran Is Complicating Trump’s Agenda at Home
https://www.nytimes.com/2026/08/04/us/politics/iran-war-complications-
trump-agenda.html
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