Cash Is Trash! watch!
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- CoolHandLuke70, on 06/19/2008, -0/+2Wise choices to make money. However, the times that are just at the door step will require much more wisdom than what commodities make economic sense to stay alive and healthy!
- fbliss, on 06/19/2008, -0/+1Yeah. This is absolutely true. Anyone who says otherwise clearly doesn't understand what the Gold standard is and why paper currency is doomed to fail.
- Berkana, on 06/20/2008, -0/+1While I agree with the proponents of monetary reform, what he says is not strictly accurate ("Never in the history of man has this happened"); fiat money has been used successfully in the past, though it was the rare exception rather than the norm. In Britain, Tally sticks were used, and were accepted as money because British taxes were payable in the form of tally sticks. Many tribes used shells and other "fiat" items for money. In fact, the use of gold is essentially "by fiat" as well, since it only has value in that others accept it as such. Being rare, it makes inflating the supply of gold hard, but none the less, gold would be worthless if we didn't agree to hold it in esteem. Iron 57 and Francium are both even more rare than gold, but they aren't considered valuable. Platinum was once a byproduct of gold mining, and was considered a waste metal until the Russians minted Rubles out of it.
The root of the problem doesn't go away if you use gold but keep allowing fractional reserve banking. The problem is fractional reserve banking, which was in place even before Nixon took us off the gold standard. With fractional reserve banking, the banks end up inflating the money supply by lending out more money than they have gold to back. Although this allowed the growth of the money supply, which is useful in some cases, more often than not, growth of the money supply outpaced society's need for more money, resulting in inflation. (The opposite case is not enough liquidity.)
Having NOTHING but debt to back your money takes any limit to inflation and tosses it out the window, but having gold backed currency while permitting fractional reserves really doesn't solve the root of the problem.
For the details, watch this:
http://digg.com/business_finance/Our_Debt_based_Mo ...- CoolHandLuke70, on 06/20/2008, -0/+1He actually went on to say that it HAD happened before, which is true(colonials, greenbacks, et al). BUT, his point, which is also true, is that it is not a good thing for the economy. And you are correct in that this aids central banking/fractional reserve banking. Sadly, we are looking at such a gargantuan debt bubble already and as the FED heads in the way of hyperinflation by printing dollars overtime, I can only see complete fiscal meltdown that can only bring HUGE change! Going back to gold would be a step in the right direction and should be done, but you are correct that the scam of fractional reserve banking will just put us back to where we are now if we do not take care of that soon after --- even Jefferson, and Madison and others were well aware of this!
- Berkana, on 06/20/2008, -0/+2The greenback was actually rather successful, as it was circulated and did not have to be continually re-borrowed at interest in order to exist in circulation, whereas virtually all of our bank-credit money (>95% of what circulates as money; the rest is cash) exists only when it is borrowed into existence (since there are no reserves to back 9 out of 10 dollars lent out), and disappears when the principal is repaid; in order for our money supply to exist, more people have to go into debt to put money into circulation. If people all stopped borrowing money now, and people kept paying off debts, we would end up with no money.
Colonial script was actually successful before the revolutionary war, but was abused after the war. Gold proponents point out the latter, but often seem to ignore the former to make their point about gold and precious metals, which I don't think is fair. In all honesty, money need not be based on precious metals, and if it is, all of a sudden the ones with the metal have all the money. Because of this, I don't think a gold standard is a viable option at this point in time. What needs to happen is that the right to issue money needs to be taken out of the hands of the private banks and the Fed, and given to the government, and the reserve ratio needs to be slowly increased back to 1:1, or higher. Money needs to be spent into the economy, not lent into the economy, and no more money should be put into the economy than is needed, or inflation due to devaluation of the dollar will occur.
- Berkana, on 06/20/2008, -0/+2The greenback was actually rather successful, as it was circulated and did not have to be continually re-borrowed at interest in order to exist in circulation, whereas virtually all of our bank-credit money (>95% of what circulates as money; the rest is cash) exists only when it is borrowed into existence (since there are no reserves to back 9 out of 10 dollars lent out), and disappears when the principal is repaid; in order for our money supply to exist, more people have to go into debt to put money into circulation. If people all stopped borrowing money now, and people kept paying off debts, we would end up with no money.
- CoolHandLuke70, on 06/20/2008, -0/+1He actually went on to say that it HAD happened before, which is true(colonials, greenbacks, et al). BUT, his point, which is also true, is that it is not a good thing for the economy. And you are correct in that this aids central banking/fractional reserve banking. Sadly, we are looking at such a gargantuan debt bubble already and as the FED heads in the way of hyperinflation by printing dollars overtime, I can only see complete fiscal meltdown that can only bring HUGE change! Going back to gold would be a step in the right direction and should be done, but you are correct that the scam of fractional reserve banking will just put us back to where we are now if we do not take care of that soon after --- even Jefferson, and Madison and others were well aware of this!
- MarkEarhart, on 06/22/2008, -0/+2Money has been exactly what the International bankers have decided it is ever since the Federal Reserve Act of 1913. Since we left the concept of sound money behind us during the Nixon administration we have been on an inevitable crash course with financial ruin. You can thank The World Bank and the IMF for the fall of the civilized world and the exploitation of the third world and developing countries.
If you own any precious metals or jewels guard such possessions with your life. The dollar will not be worth the material it is printed on by the time those who are intentionally collapsing our economy are finished. - mrzack, on 06/22/2008, -0/+1NOOOOOOO!! I don't believe you! Why do you hate America??
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