Because the market already decided that gold sucked. If the market didn't think so it wouldn't allow Fiat to exist or it would absolutely crush every Fiat system out there when one single asset backed system came to fruition.
Because the market already decided that gold sucked. If the market didn't think so it wouldn't allow Fiat to exist or it would absolutely crush every Fiat system out there when one single asset backed system came to fruition.
this iceland situation is very very very eerie to me. They had a flourishing economy only months ago. Then virtually over night....the international bankers cut them off...pulled their card so to speak and sent the country into what seems like an instant depression. Icelands economy was systematically imploded. I think the U.S. is next and the riots will make this look like candyland.
Then let's end the capital gains tax, legal tender laws, and the other barriers that competitive currencies have to overcome. Right now we are experiencing Gresham's law because even if you theoretically could pay in gold, people would much rather give up a piece of paper. If we really opened up competition, the dollar would sink in price like a stone, or rather, a piece of paper.
Let's stop the nonsense like the Fed raiding the Liberty Dollar, the SEC attacking p2p lending sites, etc and let the market be free to conduct business without all this government coercion.
TastesLikeChicken
Lifer
- Sep 12, 2004
- 16,852
- 59
- 86
Does this discrepancy come about because the US poor are poorer or because the US rich are richer?
Ahh, yes, the competitive currency bullshit, drug out and refuted every time.
Why don't other countries have competing currencies? Could it be, perhaps, that if they did so their economic system would become chaotic and people wouldn't invest in it?
StageLeft
No Lifer
- Sep 29, 2000
- 70,150
- 5
- 0
How is it not true? Who gives a sh*t what happens to Iceland's currency. If you don't live in Iceland, chances are you had nothing in it. The USD is, to use an overused term, too big to fail. Well, at least in theory. But if it collapses, many countries and billions of people would be directly affected by it. Thankfully, it's not propped up with quite the kind of silliness it could be and the US does still have, but Western standards, a somewhat manageable debt rate, higher than some countries and lower than others. It's going clearly in the wrong direction, though.
They said the titanic couldn't sink either. Listen man history tells us one thing....Great Empires always fall.
There's nothing chaotic about free choice. All countries print money, they have no intention of allowing others to print their own money and compete.
Why do you think Nixon axed the gold standard in 1971? What do you think the intention was? Why did we change course? The worst that could have happened is that foreign countries would exchange their dollars for gold. If gold is so worthless then why did we axe the fixed converbility? Why not just let foreign countries take the gold in exchange for their dollar reserves?
You worry about chaos, yet you hold on to government regulations and laws that discourage the use of other currencies. Do you not understand what this is doing?
IF gold, for example, is just as acceptable of a currency as the dollar is (I mean individuals and businesses are willing to accept gold, but don't normally receive it because individuals are more inclined to give up paper when it is worth the same) and if we haven't had a negative inflation rate since 1955 (I'm even using CPI data, mind you) then our dollar has been exponentially inflating.
We're bound to reach a point where our level of inflation will be noticeable. This is why all these government laws and regulations will cause select commodities and stocks to suddenly skyrocket when a "correction" is made. If you want to have the last word, go ahead. I'm not looking for an argument with you. I know what will happen so I'm stocking up on gold right now, I'll be glad to buy your's if you don't want it.
There's a reason why Europe went to the Euro. Why competing currencies was eliminated and why things were aggregated. Disaggregation causes economic friction at any level.
Because the gold standard was antiquated and inflexible.
I can use Euros if I want. I can use anything else. I am free to barter. Nobody does it because it's inefficient.
So what? Wages have kept up with inflation. We haven't inflated, or deflated, to any large extent over what any other country has, thus our exchange rate is roughly equal, keeping PPP in alignment.
Items will "skyrocket" only because the market will build in a new expectation for their value, should that scenario happen (and it wont). It has nothing to do with laws or regulations.
Go ahead and buy gold, it's still down 20% from the peak and will likely go further. I'll be laughing my ass off when it goes down to 600.
The guy must absolutely must be a Messiah.
To get such accolades and he's still a month from even being in Office.
Go Messiah O :thumbsup:
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