Backed Money, Fiat Money, and the Real Bills Doctrine
Right now, the value of a paper dollar must be 1 oz., or why would the customer have deposited the ounce in the first place? At the end of 1 year according to the equation, a paper dollar will be worth .99 0z. But it would be wrong to then turn around and take the present value of that .99 oz. and claim that a dollar would be worth .99/1.05=.94 oz. ................
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