| | The federal government's position, put sarcastically, is that unauthorized counterfeiting is illegal. Having authorized government agents print money not backed by anything tangible -- OK. Doubling the supply of this fiat money with no increase in national productivity, so it's fiat money squared -- again, OK.
Minting coins made of precious metals that are actually worth something, or issuing competing paper money backed 100% by such a tangible good -- that'll land you in jail, IIRC.
A much better currency would be private paper money that acts as bearer bonds for a stable, diversified underlying asset, such as a diversified low cost mutual fund. If I had a choice between accepting U.S. fiat money, or paper shares of my investment of choice, Vanguard Total Stock Market Index Fund, I'd go with the latter every time.
The former is, over long time frames, a depreciating asset. The latter is, over long time frames, an appreciating asset.
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