Since Federal Reserve Notes exhibit the Pell ratio of 2.35 (2.348 = 15.5 cm long ÷ 6.6 cm long), then it appears to me that our money supply has already been subliminally programed to encourage us to favor the use of plastic over paper. {Digital money, ie credit cards, debit cards, personal checks, and bank wire transfers and the like, comprise 98% of the economy.}
There is at least one exception, notably...
This gift card from Target store, exhibited above, has a length of 8.6 cm and a height (or, width) of 7 cm. If we take 8.6 and divide it by 7, then the outcome is 1.2285714. If we then multiply this result by a factor of two, then the result is 2.4571429. This is a close approximation of the Pell ratio. I may be wrong, but I think I recall another version of a Target gift card in the proportion of a golden rectangle sold within Target stores?
Digital money is not a totally bad thing...
If we want to further improve upon the value of plastic money, we may go further by backing it up with real value: commodities/products or services. This is not the case with Federal Reserve Notes. If the economy crashed tomorrow, Federal Reserve Notes would not have any purchasing power, and you wouldn't be able to purchase anything – no matter how desperate you were. Although you could pay your debts to the banks with them, but don't count on any substantial portion of your debt being paid off with them since they would in all likelihood be worth less than the value of a postage stamp; actually, you'd be better off paying your debts with a postage stamp if this was acceptable to the other party negotiating the payment of your debt to them! {As you may already know, Federal Reserve Notes are not backed up with anything other than more Federal Reserve Notes.}
Is digital money i.e Plastic card causing inflation?
ReplyDeleteIn a sense, plastic represents digitized money which is user friendly and thus accelerates transactions and thus leads to a heightened value to the digital dollar which, of course, is a delusional value not steeped in gold or silver. Thus, anything which contributes to the value of a digital dollar also contributes to the illusion of wealth which it fosters. And inflation is the simple honest recognition of this fraud.
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