Shut Down the Federal Reserve?

[JS80]

I made the same comment over at wilmott forums - i don't understand why people w/o any real background in the subject are so insistent on the crackpot view of the world. I guess it's easy to sell the conspiracy theory or something.

THat's about the easiest thing to understand...

 

[halik]

ok and your still obviously on your knees sucking the banks cocks. soooo what?

Only proving my point there, bud...

Knowledge sets your free; I would recommend a couple courses in Economics and Finance.

 

[TONYSALEM]

I just found this section and i am sooooooo glad.. I thought i was alone in thinking that the FED is a big scam!!! lol

 

[JMapleton]

You mean, the Fed does exactly what people who advocate Gold do? Goldbugs dig gold out of the ground and convince people it has actual productive value.

You missed one point.

The gold bugs have actually convinced everyone gold has value, that's never been in dispute.

Most governments and economists have not fallen for the nonsense that a piece of paper printed by a country indebted for the next 20 years can have productive value.

I won't waste my time with you, I've proven the point of gold over and over and you ignore those posts. You find a silly one I do, ignore all the points I made in previous threads, and play dumb continuing your Keynesian nonsense just for show, not even to debate might I add, but just to look cool on an internet forum.

Your posts are trash and just an excuse some guy to rant on an internet forum.

 

[sandorski]

You missed one point.

The gold bugs have actually convinced everyone gold has value, that's never been in dispute.

Most governments and economists have not fallen for the nonsense that a piece of paper printed by a country indebted for the next 20 years can have productive value.

I won't waste my time with you, I've proven the point of gold over and over and you ignore those posts. You find a silly one I do, ignore all the points I made in previous threads, and play dumb continuing your Keynesian nonsense just for show, not even to debate might I add, but just to look cool on an internet forum.

Your posts are trash and just an excuse some guy to rant on an internet forum.

fail on

 

[LegendKiller]

You missed one point.

The gold bugs have actually convinced everyone gold has value, that's never been in dispute.

Most governments and economists have not fallen for the nonsense that a piece of paper printed by a country indebted for the next 20 years can have productive value.

I won't waste my time with you, I've proven the point of gold over and over and you ignore those posts. You find a silly one I do, ignore all the points I made in previous threads, and play dumb continuing your Keynesian nonsense just for show, not even to debate might I add, but just to look cool on an internet forum.

Your posts are trash and just an excuse some guy to rant on an internet forum.

There was no good point to your previous post. Gold only has value because market insanity says it is a good store of value. The dollar has value because the market insanity says it is a good store of value. They BOTH are the same thing. BOTH are market driven.

Whether or not the money is printed by a country indebted for the next 20 years has no bearing on that country's ability to pay its debts. There are large and successful companies out there that are indebted better than 1x their revenue for the next 20 years, yet they are highly rated and very successful companies.

I mean, shit, in order to buy a decent house in Fairfield County CT that is convenient enough to the train for commute into Manhattan, somebody would have to pay ~500K for the next 30 years. That person can pay that easily on a 200K salary. Is that person suddenly insolvent and "worthless" now? Should anything else that person borrows or that person's ability to use IOUs be permanently tarnished because he's suddenly now indebted for the next 30 years at 2.5x his salary?

You've posted absolutely nothing to support gold that hasn't been shot down already by people much more knowledgeable and thoughtful than you (first, JS80, halik, sandorski, me). Only people obsessed with a shiny rock with practically no intrinsic value support gold.

 

[piasabird]

Federal Reserve Banks process all of our checks in case you do not know this??

 

[Babbles]

. . . I've proven the point of gold over and over and you ignore those posts. You find a silly one I do, ignore all the points I made in previous threads, and play dumb continuing your Keynesian nonsense just for show, not even to debate might I add, but just to look cool on an internet forum.

Your posts are trash and just an excuse some guy to rant on an internet forum.

You did not address this to me, but I thought I would address it anyhow.

I never saw a good point for going to a gold standard. I pointed out in another post how terrible the idea is, but perhaps you need a better illustration.

Let's just pretend that the US went back to the gold (or really any precious metal) standard.
According to the US Treasury China holds ~$900 billion worth of treasury securities (http://www.ustreas.gov/tic/mfh.txt). When those securities mature, or with any coupon payments, China could redeem them for gold (rather take the cash and redeem the cash for gold, but same idea). Granted China wouldn't be so irresponsible as to cash in on $900 billion worth of gold; totally destroying the US economy wouldn't be too wise for their exports. However you could be certain with a fluctuating currency and the chance to cash in on a hard asset that China would exchange some promissory notes for gold. I'm sure forking over gold to Venezuela for oil and in Africa for copper and aluminum would be a certain way of increasing trade in those areas. Other countries could see China exchanging cash for gold then want to jump on board for fear of China obtaining most of the US held gold. The US would then see gold stores decreasing and actually have to pay to mine and store gold. Oddly enough if the money was based on gold then the US Treasury would have to pay gold for gold. Assuming there is not 100% return on everything, it's safe to assume this would be a slippery slope to economic ruin.

The US would be forced to revalue the currency, which would effectively end our economy as we know it. With the exception of very, very few examples, currency revaluation has demolished economies. However if cash had to be backed by gold that is exactly what would have to happen. Granted if countries were to exchange cash for gold that would lower the price of gold as more gold would be available making it more difficult to make a run on Fort Knox. On the other hand as the value of gold decreased and with a gold based currency standard the US dollar would decrease.

As I mentioned in another post of mine, in economics you are not trapped in a zero-sum world. People or entities can gain (or lose) wealth without others losing (or gaining) wealth. If everything was based on a hard asset like gold then you would have only x-amount of gold out there. If I was to make more money and exchange that for gold, then that would decrease the amount of gold that other entities could obtain. The economy could effectively grow only as much as the amount of gold exists to allow it to grow.

Sounds like a great idea, doesn't it?