Re:North Korea Changes Currency
by patrickgzill on Wednesday December 02, 2009 @12:39PM
(#972468)
Gold and silver are insurance against the government's behavior. Paper issued by the government cannot serve that purpose.
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Don't be naive. Sure, if you have a small sum of gold buried in the yard, it can hold its value through times of political uncertainty. But to exercise any meaningful opposition to a despotic government, you need to be rich ( in order to pay people to do your will) or well-organized (in order to urge them via the media). In the former case, you can be taxed - governments levying taxes on the very wealthy usually goes down well with the much poorer majority - and in the latter, you can be declared a subversive and censored.
You might find it instructive to examine the history of ancient Rome around the time of Nero and Caligula. If you find history books dry reading, get a copy of 'I, Claudius' which presents the history of that period in narrative form and is both educational and entertaining.
This is not to say that opposition to a tyrannical government is hopeless - indeed, history with littered with examples of such leading to revolution. But currency alone is a weak check on a determined oppressor. And (as we are sadly reminded by news from Africa on a regular basis) revolutions often result only in a change of players, but the game remains the same.
Then take paper issued either by a foreign government or by a non-government.
Re:North Korea Changes Currency
by patrickgzill on Wednesday December 02, 2009 @03:15PM
(#972804)
Quis custodiet ipsos custodes?
Don't you trust the Swiss?
Re:North Korea Changes Currency
by patrickgzill on Wednesday December 02, 2009 @08:48PM
(#973478)
The Swiss Franc used to be 100% backed by gold. No longer, they removed backing and convertibility in 1999. http://en.wikipedia.org/wiki/Gold_standard#Gold_as_a_reserve...