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Markets in a tailspin

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NoStateofMind said:
If China keeps devaluing their currency and then switches to a gold standard (they've been hoarding for some time), what kind of effects might that have on the world economy?

They already are devaluing to stimulate their exports (and internal manufacturing) due to their range peg to the dollar. Being a manufacturing juggernaut, and therefore can provide for their own internal needs, creating a gold backed currency would immediately place them as the worlds most powerful economy overnight. Right?

Or am I mistaken? Is this not a possibility?
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Absolutely retarded. They clearly prefer having control over the float of yuan and be able to depreciate it as needed.

Gold backed currency is extra asinine in this situation, given that their gdp grows about 3-4x faster than worlds gold supply. Total ron paul loonie nonsense.

And for the record, backing your currency with gold has never made *any* economy more powerful. Look at monetary system of any of the G20.
 
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halik said:
Absolutely retarded. They clearly prefer having control over the float of yuan and be able to depreciate it as needed.

Gold backed currency is extra asinine in this situation, given that their gdp grows about 3-4x faster than worlds gold supply. Total ron paul loonie nonsense.
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You could have answered a completely different way. IDK what Ron Paul has to do with this. Maybe show some respect? Thanks, I guess. smh
 
NoStateofMind said:
You could have answered a completely different way. IDK what Ron Paul has to do with this. Maybe show some respect? Thanks, I guess. smh
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Ron Paul and the like (people with no background in economics, yet for some reason pushing Austrian economics nonsense) are the ones chiefly responsible for broadcasting inane ideas like that.

Let's be honest here - where did you get the idea that backing a currency by an arbitrary commodity will somehow make for the "most powerful economy" in the world? That just screams RP2012 youtube re-education videos.

You asked if you were mistaken; you are and simply don't like that answer.
 
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I've never liked the fact that the 401k is so dependent on the stock market. IMO, most people who have a 401k have no idea that their retirement is so intertwined with how well the stock market is doing. As we are seeing today, if the stock market is having a bad day your 401k is going to take the brunt of it.

This is why it's so important to have diversified investments. Owning property, maxing out your Roth IRA, and other investments are a much better option. Even starting an online business so you can possibly generate passive income is a good thing to have as well. I met a few people who were making $10,000 a month on Kindle alone.
 
There's very little to invest in the American Government/Economic system.

Unless you want to invest in Debt, or Government.

-John
 
halik said:
Ron Paul and the like (people with no background in economics, yet for some reason pushing Austrian economics nonsense) are the ones chiefly responsible for broadcasting inane ideas like that.

Let's be honest here - where did you get the idea that backing a currency by an arbitrary commodity will somehow make for the "most powerful economy" in the world? That just screams RP2012 youtube re-education videos.

You asked if you were mistaken; you are and simply don't like that answer.
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It is not the answer provided that provoked the statement "You could have responded differently" but rather the manner in which it was conveyed. You're simply so emotionally against any mention of it you respond in verbal vitriol. It's okay, you can be human on the internet as well.
 
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