19 Jul 23
Just heard about the project to create a new currency.
As far as I heard (https://www.btc-echo.de/news/brics-goldwaehrung-darum-wird-putins-goldstandard-scheitern-167896/) it is based on Gold and will be somehow carooed by the five Brics states.
The article is quite critical on the endeavour. What do people think here?
The key to BRICS is how stable China's economy remains. It's positioned to be the world's largest economy and has been steadily growing.
At the same time China is known for using its financial status to bully other entities, even for minor infractions like referring to Taiwan as a country. What kind of loyalty will China demand of nations using BRICS? Will that involve staying quiet on China's abuse of Muslims? Will that involve special favors that nations dependent on BRICS wouldn't normally agree to?
And I haven't even mentioned the Russian dictatorship yet.
Any world currency should come with no strings attached. BRICS can't guarantee this given the players involved. Each of the nations represented in BRICS are known for human rights abuses. India, like Russia and China, is also known for banning speech and media it doesn't agree with, especially dissent.
@ponderable saidA gold standard currency in today's day and age is insane.
Just heard about the project to create a new currency.
As far as I heard (https://www.btc-echo.de/news/brics-goldwaehrung-darum-wird-putins-goldstandard-scheitern-167896/) it is based on Gold and will be somehow carooed by the five Brics states.
The article is quite critical on the endeavour. What do people think here?
Hey, I'm a deficit hawk. I support a balanced budget Amendment to the Constitution (with an exception for an emergency, requiring a 2/3 Congressional vote).
But you can't tie your hands on macroeconomic policy like that. You have to have the freedom to engage in quantitative easing and deficit spending when you need to. It's a tool that should be used sparingly (not as a tool to get re-elected by inflating an already-good economy), but you can't lock that door and throw away the key. If you do, you're tying your hands in the face of a depression.
It's just not worth it. Depressions cause too much suffering.
19 Jul 23
@sh76 said"A gold standard currency in today's day and age is insane"
A gold standard currency in today's day and age is insane.
Hey, I'm a deficit hawk. I support a balanced budget Amendment to the Constitution (with an exception for an emergency, requiring a 2/3 Congressional vote).
But you can't tie your hands on macroeconomic policy like that. You have to have the freedom to engage in quantitative easing and deficit spending when you nee ...[text shortened]... hands in the face of a depression.
It's just not worth it. Depressions cause too much suffering.
Why?
@metal-brain saidI believe I explained my position in the subsequent paragraphs,
"A gold standard currency in today's day and age is insane"
Why?
@sh76 saidThe gold standard did not cause the great depression. The Federal Reserve System did. I believe you are spreading misinformation. The US had Gaddafi killed for trying to launch the gold dinar. Are you claiming they killed him to save the world economy from a depression?
I believe I explained my position in the subsequent paragraphs,
https://www.zerohedge.com/geopolitical/rfk-jr-vows-back-us-dollar-bitcoin-or-gold-if-elected-president
You need to stop repeating propaganda like a parrot.
@metal-brain saidDepression is a generic term. I did not necessarily mean the Great Depression.
The gold standard did not cause the great depression. The Federal Reserve System did. I believe you are spreading misinformation. The US had Gaddafi killed for trying to launch the gold dinar. Are you claiming they killed him to save the world economy from a depression?
https://www.zerohedge.com/geopolitical/rfk-jr-vows-back-us-dollar-bitcoin-or-gold-if-elected-president
You need to stop repeating propaganda like a parrot.
Without the ability to engage in quantitative easing and deficit spending measures in emergencies, depressions would be much more common.
20 Jul 23
@metal-brain saidGeez. 90 minutes? No, thanks.
@sh76
Learn your history.
https://www.bitchute.com/video/JeUW9f8XfdH5/
Anyway, I already took Macroeconomics-101. I think I can have that information, though I'm sure there's plenty of fascinating conspiracy nonsense in there if you're linking to it.
20 Jul 23
@sh76 saidThe federal reserve system was supposed to prevent those, yet we had the great depression anyway and lots of recessions since. Quantitative easing has been used to benefit the bankers who own the FRS and other wealthy people. You are unwittingly supporting corporate welfare on a massive scale.
Depression is a generic term. I did not necessarily mean the Great Depression.
Without the ability to engage in quantitative easing and deficit spending measures in emergencies, depressions would be much more common.
https://scheerpost.com/2023/04/10/us-bank-bailout-benefitted-billionaires-exposing-corruption-i-understand-why-americans-are-angry/
How would the gold standard hamper deficit spending measures in emergencies? Good credit is good credit. The US government cannot borrow the money? The USA has been in debt almost forever. Andrew Jackson was the only president to eliminate the national debt.
I think you are repeating propaganda from the banks that are shareholders of the FRS. Of course they want QE so they can enrich themselves. You have the foxes guarding the hen house. The FRS answers to nobody. Nobody can overrule them and since the banks that are the shareholders and largely control the FRS they will always get bailed out by the FRS.
Are you aware you are supporting welfare for the wealthiest banks and corporations? You are also assuming the US dollar would only be backed by gold. I suggest backing the dollar with other things as well. Why do you think JD Rockefeller and JP Morgan funded McKinley's campaign with so much money to prevent William Jennings Bryan from becoming POTUS?
https://en.wikipedia.org/wiki/Bimetallism
Rockefeller and JP Morgan had most of the gold. Of course they wanted the gold standard and fought hard against Bimetallism. Learn your history
@sh76 saidProve it is conspiracy nonsense. I challenge you to try.
Geez. 90 minutes? No, thanks.
Anyway, I already took Macroeconomics-101. I think I can have that information, though I'm sure there's plenty of fascinating conspiracy nonsense in there if you're linking to it.
I took Macroeconomics courses too. Do you think everything you learned in Macroeconomics-101 is true? Do you remember the quantity equation?
https://en.wikipedia.org/wiki/Quantity_theory_of_money
Without the gold standard now we have much more inflation. That is just trading off one problem with another. Did they teach you in Macroeconomics-101 that inflation is a tax and rarely an accident?
20 Jul 23
@sh76 saidYou lost me somewhere between having a gold standard and your implication that such a standard precludes deficit spending. Historically the two have never been mutually exclusive. If nothing else, governments will just print more money, though that contributes to inflation.
A gold standard currency in today's day and age is insane.
Hey, I'm a deficit hawk. I support a balanced budget Amendment to the Constitution (with an exception for an emergency, requiring a 2/3 Congressional vote).
But you can't tie your hands on macroeconomic policy like that. You have to have the freedom to engage in quantitative easing and deficit spending when you nee ...[text shortened]... hands in the face of a depression.
It's just not worth it. Depressions cause too much suffering.
20 Jul 23
@soothfast saidA gold standard means the government cannot float more money than it can produce gold to cover.
You lost me somewhere between having a gold standard and your implication that such a standard precludes deficit spending. Historically the two have never been mutually exclusive. If nothing else, governments will just print more money, though that contributes to inflation.
20 Jul 23
@sh76 saidI see. I guess what I'm thinking about (and I had to look it up to be sure) was World War 1, when nations at war simply had to run up deficits to fund their militaries in a life-or-death struggle. Before the war the gold standard was at its zenith, with the chief combatants all being adherents. But what happened is nations just suspended the gold standard during the war. So that's always an option.
A gold standard means the government cannot float more money than it can produce gold to cover.
I'm not a fan of the gold standard. Aside from the problem that the value of gold itself is constantly in flux, it's just bizarre to me to have a currency backed by a vault full of shiny bricks.