Did going off the gold standard mean that we owe everything to the government? Now we use money printed on government paper backed by the government. Since this is the case business cannot exist without the government so government trumps business.
Was the movement to go off the gold standard simply a power play by national governments? Should it be viewed as a successful one and now governments dominate?
@KazetNagorra
So the fact that our money is created by the government does not matter.
So if there is no difference how do governments get money? Do they produce it themselves?
@eladar saidThe gold standard was not honored by the USA since inflation was preferred. More money was created than gold existed so abandoning the gold standard was the plan. Going off the gold standard insured inflation could continue allowing the inflation tax to be unchained by that pesky gold standard.
Did going off the gold standard mean that we owe everything to the government? Now we use money printed on government paper backed by the government. Since this is the case business cannot exist without the government so government trumps business.
Was the movement to go off the gold standard simply a power play by national governments? Should it be viewed as a successful one and now governments dominate?
Other rare metals could have been used to avoid deflation to those concerned with that.
https://en.wikipedia.org/wiki/William_Jennings_Bryan
@eladar saidThe government does not create the perceived value of fiat currency. People do that all by themselves. Of course, the value of fiat currency and a lump of gold are both just as imaginary. The benefit of fiat currency is that it gives central banks more possibilities to e.g. keep inflation within acceptable bounds.
@KazetNagorra
So the fact that our money is created by the government does not matter.
So if there is no difference how do governments get money? Do they produce it themselves?
@KazetNagorra
Actually deflation is what the US government has been concerned about lately.
So you agree that the government gets its money from business, therefore business comes before government.
@Mott-The-Hoople
Tell me, what value does your dollar have? Only based on the perceived strength of the US Federal government.
How does money get printed? Raising or lowering of interest rates and reserves banks are required to hold back.
Who literally prints our paper money backed by nothing? The US government.
The federal reserve is a private bank that prints the money.
I think we need to go back to the gold standard.
Paper dollars can become worthless when they are backed up by nothing.
To give an example look at Venezuela.
Their paper money is practically worthless but I can buy a lot with gold and silver coins.
Gold and silver will always be money.
Always has been always will be.
The US dollar is the world currency but other countries might adopt a gold standard to take over as the number one world currency. Namely China and Russia.
Why would I want to be paid in paper dollars when another dollar is backed by gold?
The US is printing too many dollars and it will be their downfall.
Although inflation is preferred over deflation.
Deflation was the depression. Not good.
Inflation is bad but not as bad as the depression.
@silver saidI thought the US Treasury printed money.
The federal reserve is a private bank that prints the money.
I think we need to go back to the gold standard.
Paper dollars can become worthless when they are backed up by nothing.
To give an example look at Venezuela.
Their paper money is practically worthless but I can buy a lot with gold and silver coins.
Gold and silver will always be money.
Always has been always ...[text shortened]... lation.
Deflation was the depression. Not good.
Inflation is bad but not as bad as the depression.
Yep, just looked it up.
The Fed sets interest rates and tells banks how much money that must be held in reserve.
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@eladar saidThe US dollar doesnt have a set value...it depends on where you are trying to spend it.
@Mott-The-Hoople
Tell me, what value does your dollar have? Only based on the perceived strength of the US Federal government.
How does money get printed? Raising or lowering of interest rates and reserves banks are required to hold back.
Who literally prints our paper money backed by nothing? The US government.
Our economy in part determines the value here.
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@eladar saidthis may be too complicated for you to understand...
I thought the US Treasury printed money.
Yep, just looked it up.
The Fed sets interest rates and tells banks how much money that must be held in reserve.
https://www.thebalance.com/is-the-federal-reserve-printing-money-3305842