Voltaire: Paper Currency No Value

Posted by admin on Wednesday, May 25, 2011

Voltaire Money Quotation saying coins used to be made of an amount of precious metal roughly equivalent to their value, but paper is nearly worthless. Voltaire said:
 

 

“Paper money eventually returns to its intrinsic value – zero” — Voltaire

 

 

Voltaire said paper money returns to its intrinsic value of zero because, unlike coins in his time, paper notes are not backed by a precious metal like gold or silver. Historically, coins were minted from gold or silver and their value directly corresponded to the value of the metal they contained. Paper money, on the other hand, derives its value solely from trust in the issuing authority.

If trust is lost, for example due to hyperinflation, the paper itself has no intrinsic value and would return to zero. Voltaire was pointing out that paper currency is only worth what people agree it’s worth, unlike coins backed by precious metals.

Birthday: November 21, 1694 – Death: May 30, 1778

Voltaire: Intrinsic Value of Money

Posted by admin on Wednesday, August 11, 2010

Voltaire Money Quote on the value of paper currency – which the French philosopher believed was worthless – back in the 1700’s. Paper money began in China in 960 AD and is still with us today, worthless or not.
 

 

“Paper money eventually returns to its intrinsic value – zero” — Voltaire

 

 

In this quote, philosopher Voltaire seems to be making an observation about the nature of fiat currency. By stating that paper money will eventually return to an “intrinsic value” of “zero”, Voltaire implies that money whose value is not backed by a tangible commodity like gold will be valueless if faith in the currency is lost.

The quote suggests that fiat currencies derive their worth solely from social agreement and acceptance rather than any inherent worth of the physical notes and coins themselves.

Overall, Voltaire appears to be acknowledging that while paper money may function well as a medium of exchange, its value is ultimately dependent on the credit of the issuing authority and sentiment of the populace. If that trust is seriously undermined, the money could face devaluation or collapse over time.

Birthday: November 21, 1694 – Death May 30, 1778