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Does Gresham's Law only apply to metallic coins made of a valuable base metal? I know that here in Canada people are hoarding the old pennies that are actually made of copper in order to melt them down so that's clearly Gresham's Law in action. What about the case of a country in which people...
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I have a question concerning the gold standard that a friend of mine brought to my attention. First a comment. I feel returning to the gold standard is the only true way to restore a sound economy. Having said that, is it realistic to think it could be done with the growing population? Is it feasible...
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I have listened to many financial "experts" and economists on television (mainly on CNBC) espouse their opinions on how to "fix" the economy, and one central theme always underlines the discussions: that recession must be avoided at all costs. I do not understand this. Rather, the...
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@ meambobbo What a fantastic and highly detailed response. Thank you kindly, your time and knowledge is very much appreciated . There is a lot to 'chew over' in those replies! Allow me some time to crunch up those points in my mind and I'll get back to you with some more questions if need...
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I was having an arguement with this person saying that people have a misconception about inflation because they think that inflation will rob him of his purchasing power of his hard earned money. So that when the prices rises, your dollar will buy fewer goods so it might seem that it lowers living standards...
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In the midst of our economic slowdown, the U.S. Treasury Dept has issued what they are calling the "Blueprint for Financial Regulatory Reform". The highlights, as given by an article on Yahoo!'s website , are as follows: --designate the Fed as the primary regulator for market stability...
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The textbook for my Principles of Macroeconomics class, Macroeconomics , 2nd ed. by R. Glenn Hubbard and Anthony Patrick O'Brien, has a section entitled "Money without a Government? The Strange Case of the Iraqi Dinar" (Chapter 13, p. 435 for anyone who is interested) in which the authors...
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This is a new intiative by the FED: "These arrangements will now provide dollars in amounts of up to $30 billion and $6 billion to the ECB and the SNB respectively," the Fed said, extending the term of these swap lines through Sept. 30. Can someone elaborate on this for me? Will this make a...
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So, here is something I have been thinking about for the past 2 months. Background: Currently, I reside in Tokyo, Japan. I have to commute between 2 and 3 hours a day, which means a lot of train usage. Recently, there has been a movement towards electronic forms of money: SUICA and PASMO . These are...
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Money as debt is a good educational video of how the system works but it's socialized solution is something that could be compared to the FED itself. The amount of money created (liability) in the economy should equal to that of the production (asset) of a nation thereby offsetting each other and...