Calls grow louder for action on baht

[cavanami]

I think you are confusing US with the LoS' date=' but yes in both cases.[/quote']

 

 

I was trying to make a drunken point...basically neither is backed by gold, one is doing well, 1 is going in the tank...so, so much for the "it must be backed by gold to be strong theory" as you pointed out before...

 

Flash,

 

Hell no I don't trust those lousy heathen fuckers at all!

it has to do with balanced spending, imports/exports, amount of currency in the system,

 

If truly backed by gold, then that limits the amount of currency and spending...something the US politicians do NOT want to see!

[LizardKing]

Someone no one wants to see. Can you imagine trying to run a country in 2010 on a 1933 budget? That's just retarded.

[rchapstick]

I think we should back the USD with Raw Milk.

 

Or masturbation.

 

Or burned Korans.

 

Or tax cuts for rich guys.

 

Praise Jesus!! (he's my gardener).

[cavanami]

Someone no one wants to see. Can you imagine trying to run a country in 2010 on a 1933 budget? That's just retarded.

In the past 30 years, gold is up 400%, dollar DOWN how much?

If they kept on the gold standard, with a balanced budget and did NOT have the unseen trashing of the dollar reducing ones actual buying power and out of control gov spending...oh....we would be worse off...I don't think so!

[LizardKing]

Cav, it is just not worth discussing economics with you. You have no understanding about it. Just like the TeaPartiers who fail to understand the basic concept that the government is the consumer of last resort and is the only thing that can stop a recession.

 

It's as if I got into a discussion of quantum physics with Steven Hawking...I'd have no idea what to say.

[allistar]

Being on the Gold standard would work, if we didn't have recessions and wars. I would hate to think how much we would owe China, if it was in 1933 dollars.

[Flashermac]

 

<< It's as if I got into a discussion of quantum physics with Steven Hawking...I'd have no idea what to say. >>

 

 

You could ask him to arm wrestle.

 

 

[cavanami]

Cav, it is just not worth discussing economics with you. You have no understanding about it. Just like the TeaPartiers who fail to understand the basic concept that the government is the consumer of last resort and is the only thing that can stop a recession.

 

It's as if I got into a discussion of quantum physics with Steven Hawking...I'd have no idea what to say.

So you do not understand gold being up 400% and the dollar being in the toilet....Ok, whatever.

[allistar]

Cav, if a weak dollar concerns you that much, you could always move back to the U.S.

[LizardKing]

So you do not understand gold being up 400% and the dollar being in the toilet....Ok, whatever.

It is just that one thing has nothing to do with the other, yet you fail to grasp that concept.

 

To have a modern economy, a fiat money which can be inflated and deflated in inverse to the business cycle is necessary. The gold standard was a primary reason for why the Great Depression resulted in such a collapse of business activity between 1930-1933 -- the gold standard prevented the Federal Reserve from simply printing the fiat money needed in order to fill in the hole of all the money that disappeared due to the stock market crash and resulting contraction of the money supply.

 

This caused deflation, which caused people to default on their debts, which caused banks to collapse, which caused deflation (repeat again & again) until most of the country devolved to a barter economy.

 

This is incredibly inefficient at fostering business activity. A modern economy simply has too many intermediaries for barter to be an adequate method for handling the incredible series of trades needed in order to produce even the simple computer you're reading this on. It is the whole reason the Communist system collapsed, because it turns out that running an economy with currency via the mechanism of the market simply works better than barter.

 

But this only works if the currency has a reasonably constant value, slightly declining in value every year in order to keep it available for use rather than hiding under a mattress creating no economic activity. Gold simply doesn't serve that purpose well if you have fractional reserve lending, thus why it's not used as the primary token of trade in any modern economy today -- NOT because of some secret conspiracy by Jewish bankers yada yada yada. Simply because it DOESN'T WORK.