26 May 19
@eladar saidHe mentioned returning to the gold standard but then he didn't bring it up again.
So the Bildeberg group owns the Fed, JFK tried to go around them and was killed accordingly.
You know Reagan got a lot more compliant with the establishment after he got shot.
I wonder how long it will take before they try to move on Trump.
Maybe he was told?
@eladar saidDid going off the gold standard mean that we owe everything to the government?
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?
Excellent question! But this is not something that can be answered in 25 words or less. Please ignore Whodey and Mott, neither of which know their buttox from ice cream on this subject, and do some reading in the links from Forbes, The Wall Street Journal and others below, because there is a lot to learn on this.
https://www.forbes.com/sites/nathanlewis/2015/12/10/40-out-of-40-economists-agree-the-monetary-system-that-made-america-great-is-nonsense/#dedb5125b672
https://en.wikipedia.org/wiki/Gold_standard
https://www.wsj.com/articles/SB10001424052702303918204577444270864399342
https://www.theatlantic.com/business/archive/2012/08/why-the-gold-standard-is-the-worlds-worst-economic-idea-in-2-charts/261552/
https://www.cato.org/blog/ten-things-every-economist-should-know-about-gold-standard
26 May 19
@mchill saidI say let the usual suspects sit in their dark closet telling ghost stories until they scare each other to death.
Did going off the gold standard mean that we owe everything to the government?
Excellent question! But this is not something that can be answered in 25 words or less. Please ignore Whodey and Mott, neither of which know their buttox from ice cream on this subject, and do some reading in the links from Forbes, The Wall Street Journal and others below, because there is a l ...[text shortened]... arts/261552/
https://www.cato.org/blog/ten-things-every-economist-should-know-about-gold-standard
26 May 19
@silver saidWhat do fiat currency and "huge debt" have to do with each other?
I think the USA needs to go back to silver and gold to maintain its power.
The way things are going isn't good.
You can't keep printing money and building a huge debt and maintain power as the world currency.
Eventually other countries will refuse to be paid in American dollars and go with another currency or better yet...
Silver and gold!
28 May 19
@kazetnagorra saidDoesn't inflation make it easier to repay debt?
What do fiat currency and "huge debt" have to do with each other?
Trump was once quoted as asking a question about creating money to pay off the debt. It isn't that simple of course, but there is some truth to it helping, right?
28 May 19
@metal-brain saidOne of the main benefits of fiat currency is that inflation can be better controlled. It has been largely a success - inflation in the U.S. has been around the 2% or so mark for the past couple of decades.
Doesn't inflation make it easier to repay debt?
Trump was once quoted as asking a question about creating money to pay off the debt. It isn't that simple of course, but there is some truth to it helping, right?
Government debt is paid back after a fixed term, where the longest ones are 10-year bonds (if government debt is constant, it means these bonds are constantly re-purchased at new interest rates). Investors try to take into account expected inflation of the currency in their bond purchasing decisions.
@kazetnagorra saidIn the interest in the economy of cyberspace, I was going to give half as long a response ("no)".
nope
@kazetnagorra saidInflation is kept low so the US dollar is still an attractive currency to trade in. There is a lot of wealth involved in the world reserve currency. That is why wars are fought to keep it that way.
One of the main benefits of fiat currency is that inflation can be better controlled. It has been largely a success - inflation in the U.S. has been around the 2% or so mark for the past couple of decades.
Government debt is paid back after a fixed term, where the longest ones are 10-year bonds (if government debt is constant, it means these bonds are constantly re-pu ...[text shortened]... tors try to take into account expected inflation of the currency in their bond purchasing decisions.
The success of a fiat currency controlling inflation is only to prevent deflation. Inflation is limitless and is the choice of the central banks. A gold standard would have prevented limitless inflation had the gold standard been honored, instead more currency than gold in reserves was printed. That is when the currency became fiat, not when the gold standard was officially abandoned. Anybody can promise to pay gold they have no intention of paying. That is why the gold standard doesn't really prevent inflation. Cheating is possible if you have no intention of honoring the promise to redeem for gold in the long term. The gold standard is only effective if there is resolve to honor it. That is why Jackson hated paper currency. Only real gold and silver as currency prevents deflation and even that is possible to cheat on if the gold is unpure when coins are made. Bringing gold and silver back from the new world created inflation because new coins could be minted, so that is an exception too. Spain did well doing just that long ago. Things were different back then, not like now.
https://www.history.com/news/10-things-you-may-not-know-about-andrew-jackson
Investors do not increase the money supply, central bankers do. Only the central bankers really know what to expect. They create inflation to tax with it.
28 May 19
@eladar saidAt the time that Nixon made his gold speech there were events going on which were not known to the general public. The Soviet Union, holder of tremendous gold reserves, were dumping huge amounts of gold onto the world gold market causing the price of gold to fluctuate dramatically. It was an effort to collapse capitalism. Many of the wealthiest people were trying to shore up the world economy by buying gold. The Rothschild family in particular.
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?
The effort by the Soviet Union failed and may have been one of the reasons for the collapse of the Soviet Union 16 years later.
28 May 19
Okay, here's the reason we don't have the gold standard:
Being able to float currency allows the government to ease pressure on credit and financial markets and do what is necessary to, for example, stop a Depression from developing.
Does the government abuse this power? Absolutely.
But the remedy for that is to force the government to act wisely, not to strip it of the power to pull an emergency safety valve when necessary to prevent enormous amounts of suffering.
28 May 19
@sh76 saidBut the remedy for that is to force the government to act wisely
Okay, here's the reason we don't have the gold standard:
Being able to float currency allows the government to ease pressure on credit and financial markets and do what is necessary to, for example, stop a Depression from developing.
Does the government abuse this power? Absolutely.
But the remedy for that is to force the government to act wisely, not to strip it of the power to pull an emergency safety valve when necessary to prevent enormous amounts of suffering.
Sounds reasonable, but that is a lot like forcing jellyfish to tap dance on sandpaper. Good luck with that. 😀