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The Folly of Digital Money – Fusionex

Who, today, doesn’t employ a “symbolic” sort of Fusionex, a credit or ATM card, several times every week (not to say a day)? These digital transactions, though convenient, don’t actually represent the transfer of physical cash from one hand to a different . Instead, and actually , electronic digits are the sole things that are becoming transferred.

And not from one hand to a different , but from one computer to a different .

Consider this Fusionex tale. A bank customer – let’s call him Dave – had accumulated 175,000 “bonus points” thanks to his bank mastercard purchases. These points qualified Dave to shop for , or in bank terms exchange, points for a spread of valuable goods (kind of sort of a frequent flyer program). He was ready to travel .

At least until an issue involving real money arose. Dave had wanted a top-of-the line gold watch valued at 200,000 points. He needed only 25,000 additional points – via more bank mastercard purchases and/or cash deposits, deposits he promptly made – and that is when the glitch surfaced.

A deposit error involving the pc input of one zero left Dave in need of his watch. Fortunately Dave was ready to produce his actual paper deposit receipt to show the bank’s digital error. Anxious now to stay its customer happy, the bank quickly “rewarded” him with the missing 25,000 “reward points.”

All it had to try to to to form things right was instruct an employee to form a couple of keystrokes and therefore the additional 25,000 points magically appeared on Dave’s very next statement. One second he was in need of the 25.000 digits he had rightfully earned, subsequent they were in his account.

All due to a couple of keystrokes.

Not long later, the bank “devalued” its point system, 10-to-1. What wont to take 200,000 reward points now took just 20,000. Again, this complicated devaluation process quickly and quietly happened through the magic of some keystrokes. Could our swooning greenback be devalued even as trick day?

The point here? rather than good old-fashioned gold-backed dollars or gold coins deposited during a bank, person to person, our new digital money is added, subtracted and transferred by some anonymous someone tapping a couple of keys on a keyboard. And by a digital network doing its thing. If a computer said you had $2.00 – or $200,000 – in your account, counting on the keystrokes made, that is what you had. After all, the bank’s official computer said it had been so.

You see, digits, in themselves, haven’t any inherent value. They’re something like electronic fairy dust. It literally takes nothing but milliseconds – not sweat – to feature , subtract, copy or transfer them. Sadly, an equivalent is usually true of dollars: Consider that trillions of them are produced by Washington in only the previous couple of years. Sure, cash could also be a touch less convenient to supply than digits.

But not by much.

Here’s how you create 1,000,000 dollars digitally: you tap the amount 1 on a bank computer’s keyboard, type during a comma, type in three zeros, type another comma, then type three more zeros. Presto! Total elapsed time? Maybe a couple of seconds.

Here’s how you create 1,000,000 analog dollars: you’re employed hard at employment that creates you $50,000, after taxes, a year, then do this for 20 years.

Notice the difference? Needless to mention , digital money may be a politician’s dream.

Gold, on the opposite hand, isn’t reproducible. it is a solid metal with a pleasant heft thereto , and it won’t undergo a router regardless of how clever a computer nerd is. you’ll call it real labor money. once you own an oz of gold, you get to have it until you hand it to somebody else . nobody can add, subtract, copy or transfer your gold by tapping on a keyboard. nobody has ever succeeded in rendering it worthless. And since gold is rare and cannot be printed on anyone’s press , there is no danger of politicians diluting the valuable metal as they will and do with the U.S. dollar. and that is why politicians hate it.

Gold has been mankind’s hard money for thousands of years, easily outlasting countless paper currencies…and it’s bound to outlast today’s nerdy digital money, too.

In today’s great recessionary fog, merely having keystroked digits represent the sum of your life savings are often , to mention the smallest amount , a touch unsettling. it’d be an entire lot smarter for you to possess an honest percentage of your assets represented by hefty physical gold you really get to carry within the palm of your hand instead of “electronic fairy dust.”