The most important, but least understood, price manipulation in the world today: the manipulation of the interest rate. Because interest rate reflects the price of money to a borrower it also affects demand for money. However, this affects prices throughout the economy in a manner less pervasive but just as damaging as direct price controls. The example of the Soviet Union should have taught us that no one person, no group of people, no matter how scientifically trained, can arbitrarily set prices and not expect economic havoc. I'll be writing in RP in 2008
I understand that Ron Paul wants to cut spending. However, he is not NEARLY specific enough about where those cuts will take place. Without a list of exactly what funding and programs he's going to cut, how am I supposed to make an educated decision on whether to vote for him or not?Also, there are certain services that cannot be "paid for on your own". There a lot of the services (like the military) that will only work if the government operates them.As for fiat currency, keep in mind that every country in the world (that I know of) uses a fiat currency. How does it work everywhere else but not in the USA? Also, how specifically would a gold-backed currency work? I can't figure out the details of it, a link to an article explaining it would be beneficial.Gold IS valuating. Gold is no different than oil, silver, or any stock for that matter. Gold valuating is no different than the NASDAQ going up. Gold is up whether you're looking at in USD, CDN, or Euros. Commodities are no different than stocks. Buying a commodity gives you that commodity, buying stock gives you a piece of that company.Inflation is a necessity in any economy. The important thing is targeting it, as Canada and several European countries do. What is wrong with that system? It's predictable, transparent, and stable.
our currency until 1913 was largly gold and silver pieces and until the early 1970's it was backed by gold and silver. The idea is you cannot simply print money to try to fund it, you must actually have the money in the first place.Politicians today, dont have to worry about trying to balance our out of control spending with our national income.. this is because they can simply get the FED to print more money (out of thin air) and watch the currency devaluate due to inflation.If we had to pay for a war upfront, we would never go to war unless it was of vital national interest. I cant help but believe that this would be a good thing.the value of gold has pretty much remained constant since the time of the romans. a lump of gold in rome could get someone a pair of shoes a toga and a belt. that same lump of gold (transfered into whatever the value of our dollar is ~8 or 9 hundred dollars per ounce at present) you can go and buy a pair of shoes, a suit and a belt. (please understand that last sentence was an analogy)The 'VALUE' of gold stays the same, it is the value of the dollar that keeps going lower because of inflation.Inflation is an invisible tax on those such as the middle/lower class and people on fixed income such as our elderly. If our paper money was at the very least backed by something of value (could be gold, diamonds, silver, platnum etc) then it would stop inflation, because we couldn't simply just 'print more money' thus increasing inflation.
You clearly don't understand what you are talking about.Gold HAS gone up in value. As long as it's value increases at a rate higher than inflation, it is increasing in value. Gold has tripled in value (versus the USD) since 2001. Are you trying to tell me that the USD is worth 1/3rd of what it was worth in 2001? How much does a jug of milk cost now compared to 2001? Is it a 3x difference?How can the government introduce additional money into the money supply if it's backed by gold? Currency that is backed by gold is simply a certificate saying "If you bring this certificate to the bank, we'll give you X amount of gold". So unless the government has more gold to give out, they can't create any more money.
I do sir. And since you do not live in this country I would be careful spotting off like YOU know what your talking about.If you were to price oil in gold, its price has not changed since we went into Iraq. The inflation we are worried about comes from the uneven change in the volume of money, say, when it is printed and given to a defense contractor. For the moment the contractor's suppliers do not realize the money volume has changed, the recipient of the printed money experiences increased purchasing power. The workers end up receiving the wage in old money, but then are faced with prices in the new money after the vendors adjust to the new money supply. And every time the Fed injects more money into the system, which causes more spending, then you will have more money chasing the same number of goods which causes inflation.Thomas Jefferson was concise in his early warning to the American nation, "If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered."So lets see here:inflation - checkMILLIONS of people lost their homes - checkdeflation - almost there,
So basically you're staying that the spending power of the world has never gone up? LOLTalk to me when you have even an elementary understanding of economics.
johnfiveMar 4, 2008
The most important, but least understood, price manipulation in the world today: the manipulation of the interest rate. Because interest rate reflects the price of money to a borrower it also affects demand for money. However, this affects prices throughout the economy in a manner less pervasive but just as damaging as direct price controls. The example of the Soviet Union should have taught us that no one person, no group of people, no matter how scientifically trained, can arbitrarily set prices and not expect economic havoc. I'll be writing in RP in 2008
tomk88Mar 5, 2008
I understand that Ron Paul wants to cut spending. However, he is not NEARLY specific enough about where those cuts will take place. Without a list of exactly what funding and programs he's going to cut, how am I supposed to make an educated decision on whether to vote for him or not?Also, there are certain services that cannot be "paid for on your own". There a lot of the services (like the military) that will only work if the government operates them.As for fiat currency, keep in mind that every country in the world (that I know of) uses a fiat currency. How does it work everywhere else but not in the USA? Also, how specifically would a gold-backed currency work? I can't figure out the details of it, a link to an article explaining it would be beneficial.Gold IS valuating. Gold is no different than oil, silver, or any stock for that matter. Gold valuating is no different than the NASDAQ going up. Gold is up whether you're looking at in USD, CDN, or Euros. Commodities are no different than stocks. Buying a commodity gives you that commodity, buying stock gives you a piece of that company.Inflation is a necessity in any economy. The important thing is targeting it, as Canada and several European countries do. What is wrong with that system? It's predictable, transparent, and stable.
thechr0nicMar 5, 2008
our currency until 1913 was largly gold and silver pieces and until the early 1970's it was backed by gold and silver. The idea is you cannot simply print money to try to fund it, you must actually have the money in the first place.Politicians today, dont have to worry about trying to balance our out of control spending with our national income.. this is because they can simply get the FED to print more money (out of thin air) and watch the currency devaluate due to inflation.If we had to pay for a war upfront, we would never go to war unless it was of vital national interest. I cant help but believe that this would be a good thing.the value of gold has pretty much remained constant since the time of the romans. a lump of gold in rome could get someone a pair of shoes a toga and a belt. that same lump of gold (transfered into whatever the value of our dollar is ~8 or 9 hundred dollars per ounce at present) you can go and buy a pair of shoes, a suit and a belt. (please understand that last sentence was an analogy)The 'VALUE' of gold stays the same, it is the value of the dollar that keeps going lower because of inflation.Inflation is an invisible tax on those such as the middle/lower class and people on fixed income such as our elderly. If our paper money was at the very least backed by something of value (could be gold, diamonds, silver, platnum etc) then it would stop inflation, because we couldn't simply just 'print more money' thus increasing inflation.
tomk88Mar 5, 2008
So do you believe the Dow Jones goes up in value? Or is it just "fiat currency declining"? You don't even know what you're talking about.
tomk88Mar 5, 2008
You clearly don't understand what you are talking about.Gold HAS gone up in value. As long as it's value increases at a rate higher than inflation, it is increasing in value. Gold has tripled in value (versus the USD) since 2001. Are you trying to tell me that the USD is worth 1/3rd of what it was worth in 2001? How much does a jug of milk cost now compared to 2001? Is it a 3x difference?How can the government introduce additional money into the money supply if it's backed by gold? Currency that is backed by gold is simply a certificate saying "If you bring this certificate to the bank, we'll give you X amount of gold". So unless the government has more gold to give out, they can't create any more money.
johnfiveMar 5, 2008
I do sir. And since you do not live in this country I would be careful spotting off like YOU know what your talking about.If you were to price oil in gold, its price has not changed since we went into Iraq. The inflation we are worried about comes from the uneven change in the volume of money, say, when it is printed and given to a defense contractor. For the moment the contractor's suppliers do not realize the money volume has changed, the recipient of the printed money experiences increased purchasing power. The workers end up receiving the wage in old money, but then are faced with prices in the new money after the vendors adjust to the new money supply. And every time the Fed injects more money into the system, which causes more spending, then you will have more money chasing the same number of goods which causes inflation.Thomas Jefferson was concise in his early warning to the American nation, "If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered."So lets see here:inflation - checkMILLIONS of people lost their homes - checkdeflation - almost there,
tomk88Mar 5, 2008
So basically you're staying that the spending power of the world has never gone up? LOLTalk to me when you have even an elementary understanding of economics.
johnfiveMar 5, 2008
LOL. spending power increase comes from innovations in bringing the price of a particular good down.