I know that most of you here love the gold theory. But I think that despite gold being so great as a universal medium of exchange, Americans are better off using the US dollar.
To better understand my point we need to go back to 1945. This crucial date gave America an advantage of a life time. After WWII American emerged as the political, economic and military leader of the free world and the US dollar was to be use as the international medium of exchange.
Now, America has a monopoly in the issuance of US dollars. This makes it easier and cheaper for Americans to compete and trade in the international arena. Why would anyone ever even think of using Gold as a medium of exchange???
Well in my case I would keep things the way they were before nixon abolished it in 1971. Only because since that day inflation threatens the future of the US dollar.
Corporatism is using state means to enhance market share and profitability of a few favored firms, at the expense of the citizen.
You might be right but I still own a bunch of gold.
Wrong, if what you are saying is true then there would not have been a reason for government thugs to raid the offices of the Liberty Dollar, confiscate the silver and hold indefinitely the principals that built it (The last I had read, the fellow that is Canadian has been held without bond or trial for over 2 years). The fact is that the position of the dollar is deteriorating and the US government is becoming more violent in its attempts to maintain a hold on their currency monopoly.
And if gold and other precious metals were so worthless and undesired, then why not remove the "Capital Gains" taxes on these things.
If you let the market sort out the best alternatives you would find that the Federal Reserve Note is not good money because it is only backed by violence.
I invite you to read my post again......................you seem to be writing about something else.
Bogart: Wrong, if what you are saying is true then there would not have been a reason for government thugs to raid the offices of the Liberty Dollar, confiscate the silver and hold indefinitely the principals that built it (The last I had read, the fellow that is Canadian has been held without bond or trial for over 2 years). The fact is that the position of the dollar is deteriorating and the US government is becoming more violent in its attempts to maintain a hold on their currency monopoly. And if gold and other precious metals were so worthless and undesired, then why not remove the "Capital Gains" taxes on these things. If you let the market sort out the best alternatives you would find that the Federal Reserve Note is not good money because it is only backed by violence.
1) America came out of WW2 on top, because europe was burned to the ground, and america was not. america would need some pretty bad governing to undermine such an advantage, they had a good go it seems, but even so........
2) A)Now, America has a monopoly in the issuance of US dollars. B)This makes it easier and cheaper for Americans to compete and trade in the international arena. Why would anyone ever even think of using Gold as a medium of exchange???
explain how A entails B.
Where there is no property there is no justice; a proposition as certain as any demonstration in Euclid
Fools! not to see that what they madly desire would be a calamity to them as no hands but their own could bring
Is this a joke?
Why do you think? Because when you create massive amounts of paper money, it will eventually become worthless and WIPE OUT MIDDLE CLASS WEALTH.
I thought this was common sense at this board?
wolfman:Why would anyone ever even think of using Gold as a medium of exchange???
Because they don't want their wealth stolen.
Although it seems obvious to me I will explain:
Fact: Only the US makes US dollars. I dont think you will ask me to explain this fact.
Fact: Everyone else needs US dollars to buy good/services in the international market. I don't think you will ask me to explain this fact either.
FACT: Because everyone needs to buy US dollars they MUST trade with the US to obtain US dollars so they can trade with third parties.
FACT 2: This monopoly of US dollars gives Americans a huge trade advantage. The US in general trades with lower transaction costs and real price advantage of 1 to 1.
That is why I think the US is better off under this international order of things than using gold as currency.
AND THE ONLY THING THAT CAN UNDERMINE THIS ADVANTAGE IS ALREADY UNDERWAY AND WE ALL KNOW ITS NAME............................. "INFLATION."
Hope this explanation helps.
nirgrahamUK: 1) America came out of WW2 on top, because europe was burned to the ground, and america was not. america would need some pretty bad governing to undermine such an advantage, they had a good go it seems, but even so........ 2) A)Now, America has a monopoly in the issuance of US dollars. B)This makes it easier and cheaper for Americans to compete and trade in the international arena. Why would anyone ever even think of using Gold as a medium of exchange??? explain how A entails B.
What wealth would that be???
We owe everything we use to banks
Josh : wolfman:Why would anyone ever even think of using Gold as a medium of exchange??? Because they don't want their wealth stolen.
hope you enjoy the debate now that your cards are on the table
I'll check in later on the quality of the response to you.
wolfman:I know that most of you here love the gold theory. But I think that despite gold being so great as a universal medium of exchange, Americans are better off using the US dollar.
A thief is better off than his victim after a successful robbery.
wolfman:Well in my case I would keep things the way they were before nixon abolished it in 1971. Only because since that day inflation threatens the future of the US dollar.
Inflation is the reason that system broke down. Why exactly do you see an unsustainable system as the correct approach?
I don't think so. I think that any competing currency backed by something of value will supplant any fiat currency backed by violence. I think that the government understands this completely and believes as I do that Americans will change currencies quickly and therefore must use violence to eliminate the competition.
No disrespect but that is just rhetoric talk.
Bogart: I don't think so. I think that any competing currency backed by something of value will supplant any fiat currency backed by violence. I think that the government understands this completely and believes as I do that Americans will change currencies quickly and therefore must use violence to eliminate the competition.
wolfman:What wealth would that be???
Whatever they value.
wolfman:We owe everything we use to banks
?
You are right, but I am not suggesting the system to continue. I simply pointed out that Americans are better off by using the US dollar because it is worth more than gold. Anyone can mine gold, only one can make US dollars. To keep this going the printing press must be turned off instead of working double shift under Bernanke.
David Sherin: wolfman:I know that most of you here love the gold theory. But I think that despite gold being so great as a universal medium of exchange, Americans are better off using the US dollar. A thief is better off than his victim after a successful robbery. wolfman:Well in my case I would keep things the way they were before nixon abolished it in 1971. Only because since that day inflation threatens the future of the US dollar. Inflation is the reason that system broke down. Why exactly do you see an unsustainable system as the correct approach?