Today I discovered FIRE. I discovered that public access to OpenAI had become available. So I asked it about “sound money” v “fiat” money. And why the poor will be worse off under Universal Basic Income based on our current monetary system.
Here is a transcript of my conversation with OpenAI Sunday 12th June:
Q: Does fiat money assume the planet has infinite resources?
A: No, fiat money does not assume the planet has infinite resources.
Q: Why does fiat money does not assume the planet has infinite resources?
A: Fiat money is not based on the assumption that the planet has infinite resources. Rather, it is based on the full faith and credit of the issuing government.
Q: Fiat money is not based on the assumption that the planet has infinite resources. Rather, it is based on the full faith and credit of the issuing government because
A: The full faith and credit of the issuing government is what gives fiat money its value. The government can print more money if it needs to, but that would devalue the currency and is generally not considered good economic policy.
Q: How can government determine if human life can be sustained on the planet by using fiat money as a store of value?
A: There is no guarantee that human life can be sustained on the planet by using fiat money as a store of value. However, the government can use fiat money to help stabilize the economy and encourage economic growth.
Q: Does a gold standard better sustain human life on planet earth than fiat money if there is no guarantee that human life can be sustained on the planet by using fiat money as a store of value.
A: There is no guarantee that human life can be sustained on the planet by using either a gold standard or fiat money as a store of value. However, a gold standard may be more effective in sustaining human life on planet earth than fiat money.
Q: Why would a gold standard or “sound money” be more effective in sustaining human life on planet earth than fiat money.
A: A gold standard or “sound money” would be more effective in sustaining human life on planet earth than fiat money because the value of gold is not based on the full faith and credit of the issuing government. The value of gold is based on the law of supply and demand.
Q: If a gold standard may be more effective in sustaining human life on planet earth than fiat money does Bitcoin not provide a more practical solution then using gold in the future as it is easier to exchange across the internet?
A: There is no guarantee that human life can be sustained on planet earth by using either a gold standard or fiat money as a store of value. However, Bitcoin may provide a more practical solution than using gold in the future as it is easier to exchange across the internet.
Q: In what ways is Bitcoin a more practical solution that gold in the future as it is easier to exchange across the internet?
A: Bitcoin is a more practical solution than gold in the future as it is easier to exchange across the internet because it is digital and can be sent electronically. Gold is a physical commodity and must be physically transported.
Q: If the “law of supply and demand” is more likely to sustain human habitation on the earth than monetary policy based on “fiat money” is the human race not better choosing “sound money”?
A: There is no guarantee that human life can be sustained on planet earth by using either a gold standard or fiat money as a store of value. However, the law of supply and demand is more likely to sustain human habitation on the earth than monetary policy based on “fiat money”.
Q: Why is the law of supply and demand is more likely to sustain human habitation on the earth than monetary policy based on “fiat money”?
A: The law of supply and demand is more likely to sustain human habitation on the earth than monetary policy based on “fiat money” because the value of gold is not based on the full faith and credit of the issuing government. The value of gold is based on the law of supply and demand.
Q: Why is “fiat money” based on the full faith and credit of the issuing government unlikely to sustain human habitation on the earth?
A: “Fiat money” is based on the full faith and credit of the issuing government and is unlikely to sustain human habitation on the earth because the government can print more money if it needs to, but that would devalue the currency and is generally not considered good economic policy.
Q: Does “sound money” provide a better standard of living for the average citizen than “fiat money”?
A: There is no guarantee that human life can be sustained on planet earth by using either a gold standard or fiat money as a store of value. However, “sound money” may provide a better standard of living for the average citizen than “fiat money”.
Q: If “sound money” may provide a better standard of living for the average citizen than “fiat money”. Then would the rich benefit more from Universal Basic Income based on a “fiat money” system?
A: There is no guarantee that human life can be sustained on planet earth by using either a gold standard or fiat money as a store of value. However, the rich may benefit more from Universal Basic Income based on a “fiat money” system.
Q: Why would the rich benefit more from Universal Basic Income based on a “fiat money” system than under a “sound money” system?
A: The rich may benefit more from Universal Basic Income based on a “fiat money” system than under a “sound money” system because the value of the currency would be less likely to decline.