[quote]MattyG35 wrote:
How about because if money is digitized there will be even less accountability for the creation of it. Imagine what a dedicated ‘hacker’ could probably do with this if they wanted.[/quote]
This is not a problem so long as people are allowed to take physical ownership of their gold. A bank would go out of business if people began a run on a bank. Bank runs do work, even with digital representations of physical gold.
[quote]MattyG35 wrote:
How about because if money is digitized there will be even less accountability for the creation of it. Imagine what a dedicated ‘hacker’ could probably do with this if they wanted.[/quote]
Besides, this is the way the system currently works yet we don’t see counterfeiting except from the Federal Reserve.
[quote]orion wrote:
It is interesting that he knew that before he was head of the Fed, that he knows it now and that he tripled the money supply anyway.
[/quote]
Yup. He is an asshole. He knew it was wrong and he did it anyway.
[quote]skaz05 wrote:
[quote]MattyG35 wrote:
I read/heard that going back to a gold standard would be a bad move b/c at the present, gold is a commodity that could be easily manipulated b/c a small amount of people have (most of the) gold and that silver would be a better choice.[/quote]
Gold is an easy market to corner, most precious metals are. It’s worthless as a currency anyway because if you want to sell whatever gold you have, you have to sell it at a steep discount plus fees. It’s still worth having a modest amount in your portfolio, but those people that are hording gold are in for a very rude awakening.
The gold standard is long gone, people need to deal with it.[/quote]
It is long gone but the Feds devaluation of the dollar is criminal.
[quote]Big Banana wrote:
[quote]orion wrote:
It is interesting that he knew that before he was head of the Fed, that he knows it now and that he tripled the money supply anyway.
[/quote]
Yup. He is an asshole. He knew it was wrong and he did it anyway.[/quote]
Um…Greenspan didn’t take us off the gold standard. Once we were off that it all went to hell.
[quote]LIFTICVSMAXIMVS wrote:
[quote]MattyG35 wrote:
How about because if money is digitized there will be even less accountability for the creation of it. Imagine what a dedicated ‘hacker’ could probably do with this if they wanted.[/quote]
This is not a problem so long as people are allowed to take physical ownership of their gold. A bank would go out of business if people began a run on a bank. Bank runs do work, even with digital representations of physical gold.[/quote]
That would be a very interesting form of protest, I’ve never heard of it before, thank you.
Who’s in?
[quote]MattyG35 wrote:
I read/heard that going back to a gold standard would be a bad move b/c at the present, gold is a commodity that could be easily manipulated b/c a small amount of people have (most of the) gold and that silver would be a better choice. I think it was from the ‘Secret of Oz’, check it out if you haven’t.
I don’t know the validity of this but I just thought I would post and see if anyone knew more.[/quote]
I own both gold and silver, I trade back and forth for the exchange rate.
[quote]MattyG35 wrote:
[quote]LIFTICVSMAXIMVS wrote:
[quote]MattyG35 wrote:
How about because if money is digitized there will be even less accountability for the creation of it. Imagine what a dedicated ‘hacker’ could probably do with this if they wanted.[/quote]
This is not a problem so long as people are allowed to take physical ownership of their gold. A bank would go out of business if people began a run on a bank. Bank runs do work, even with digital representations of physical gold.[/quote]
That would be a very interesting form of protest, I’ve never heard of it before, thank you.
Who’s in?[/quote]
You have never heard of a bank run?
There was a bank run back in the great depression, which lead to the bank holiday being called. Which led to the dollar being devalued by 40%(This is what hurt so many people in the great depression, not the deflation).
[quote]Brother Chris wrote:
[quote]MattyG35 wrote:
[quote]LIFTICVSMAXIMVS wrote:
[quote]MattyG35 wrote:
How about because if money is digitized there will be even less accountability for the creation of it. Imagine what a dedicated ‘hacker’ could probably do with this if they wanted.[/quote]
This is not a problem so long as people are allowed to take physical ownership of their gold. A bank would go out of business if people began a run on a bank. Bank runs do work, even with digital representations of physical gold.[/quote]
That would be a very interesting form of protest, I’ve never heard of it before, thank you.
Who’s in?[/quote]
You have never heard of a bank run?[/quote]
I might have heard the words before but didn’t know anything about what it was.
[quote]John S. wrote:
There was a bank run back in the great depression, which lead to the bank holiday being called. Which led to the dollar being devalued by 40%(This is what hurt so many people in the great depression, not the deflation).[/quote]
Why would that devalue the dollar?
[quote]MattyG35 wrote:
[quote]John S. wrote:
There was a bank run back in the great depression, which lead to the bank holiday being called. Which led to the dollar being devalued by 40%(This is what hurt so many people in the great depression, not the deflation).[/quote]
Why would that devalue the dollar?[/quote]
(1932) Suppose I wanted to buy an item from France and it costs $20. The French take my $20 and exchange it with Uncle Sam for one ounce of gold.
(1934) Suppose I wanted to buy an item from France and it costs $20. The French take my $20 and exchange it with Uncle Sam for 20/35 of an ounce of gold. The French seller has gotten less for his item. He raises his price to $35 so he can get one ounce of gold for his item. I must now pay $35 if I want that item. My standard of living falls because prices go up.
Uncle Sam robbed me, gave me $20 for gold that is now equal to $35. They can spend this now on…the New Deal (aka a new way to rape the American people).
Now they just rob by printing and spending before the value of the paper falls; remember, they get to spend FIRST, before inflation.
Sorry for my incompetence but what I don’t understand is why would a bank run devalue the dollar? Did people withdraw paper money or did people start taking their gold out, and then the bank had to limit how much they could lend? Why did Uncle Sam raise the price of gold?
I get that if France is getting 60 cents on what should be a dollar that would raise prices, but I don’t get why the price was raised in the first place.
I’ve heard about the new deal. Gist = gov’t outlaws citizens from owning gold, and confiscate(steal) as much as they can. yes/no?
[quote]MattyG35 wrote:
Sorry for my incompetence but what I don’t understand is why would a bank run devalue the dollar? Did people withdraw paper money or did people start taking their gold out, and then the bank had to limit how much they could lend? Why did Uncle Sam raise the price of gold?
I get that if France is getting 60 cents on what should be a dollar that would raise prices, but I don’t get why the price was raised in the first place.
I’ve heard about the new deal. Gist = gov’t outlaws citizens from owning gold, and confiscate(steal) as much as they can. yes/no?[/quote]
During the late part of the 1920’s the Fed printed more dollars then there was enough gold to back it. A bank run happened they wanted to exchange $20 for an ounce of gold, but in reality it took $35.
[quote]John S. wrote:
[quote]MattyG35 wrote:
Sorry for my incompetence but what I don’t understand is why would a bank run devalue the dollar? Did people withdraw paper money or did people start taking their gold out, and then the bank had to limit how much they could lend? Why did Uncle Sam raise the price of gold?
I get that if France is getting 60 cents on what should be a dollar that would raise prices, but I don’t get why the price was raised in the first place.
I’ve heard about the new deal. Gist = gov’t outlaws citizens from owning gold, and confiscate(steal) as much as they can. yes/no?[/quote]
During the late part of the 1920’s the Fed printed more dollars then there was enough gold to back it. A bank run happened they wanted to exchange $20 for an ounce of gold, but in reality it took $35.[/quote]
Ok, that adds up for me, thanks for the spoonfeeding lol.
[quote]Brother Chris wrote:
[quote]Big Banana wrote:
[quote]orion wrote:
It is interesting that he knew that before he was head of the Fed, that he knows it now and that he tripled the money supply anyway.
[/quote]
Yup. He is an asshole. He knew it was wrong and he did it anyway.[/quote]
Um…Greenspan didn’t take us off the gold standard. Once we were off that it all went to hell.[/quote]
Who said he took us off the gold standard? He increased the money supply. He artificially adjusted interest rates.
[quote]MattyG35 wrote:
Sorry for my incompetence but what I don’t understand is why would a bank run devalue the dollar? Did people withdraw paper money or did people start taking their gold out, and then the bank had to limit how much they could lend? Why did Uncle Sam raise the price of gold?
I get that if France is getting 60 cents on what should be a dollar that would raise prices, but I don’t get why the price was raised in the first place.
I’ve heard about the new deal. Gist = gov’t outlaws citizens from owning gold, and confiscate(steal) as much as they can. yes/no?[/quote]
A bank run can only work when there is something that is supposed to be backing money up.
If there isn’t enough gold, for example, then people who go to withdraw their deposits cannot get it. It isn’t the run, per se, that devalued the dollar, it was the bank issuing paper receipts for gold that did not exist that devalues the paper. In a bank run the customers are reacting to the devaluation of their issued receipts; its not the run that devalues the paper.
Remember, this only matters under a commodity standard. Banks can now issue as much paper as they want without the fear of a bank run because there is essentially nothing backing money.
Good point LM.
[quote]MattyG35 wrote:
Sorry for my incompetence but what I don’t understand is why would a bank run devalue the dollar? Did people withdraw paper money or did people start taking their gold out, and then the bank had to limit how much they could lend? Why did Uncle Sam raise the price of gold?
[/quote]
Didn’t have the money to support a war or their spending, and in 1913 they set up the income tax they didn’t want a revolt on their hands by increasing taxes (shows how much people really supported what the Government was doing), so they just printed more money and made the dollar worth less to pay for their spending.
[quote]
I get that if France is getting 60 cents on what should be a dollar that would raise prices, but I don’t get why the price was raised in the first place.
I’ve heard about the new deal. Gist = gov’t outlaws citizens from owning gold, and confiscate(steal) as much as they can. yes/no?[/quote]
New deal was a plan to get us out of the recession, it can be blamed on Keynesian economics directly, and the fact is that the New Deal, even though the Greatest generation supposedly thinks it was an awesome plan by an otherwise awesome president, was a horrible plan not only for getting us out of the recession, but also for the country.
A oz of gold was redeemable for a $20 bank note. So the exchange rate was 1 oz of gold = $20, they government printed more money to bring it up to 20/35th of an oz for $20.
So:
Original
1 oz = $20
After they printed more money
1 oz = $35
The value of the banknotes were devalued, they could buy less. By the 1973 it was $42 an oz.
1 oz = $42
When we went off the Gold Standard in 1973 it quickly shot up.
1 oz = $102
Our dollar was serious devalued, part of the original devaluing was because Britain asked us to devalue our money because of what they owed us during WWII, just like we’re asking China to devalue their money for what we owe them.
Look at the price today
1 oz = $1334
1334/20 = 66.7…our money supply has increased around 6600%
20/1334 = .015…our money has been devalued to the point that our money is worth 1.5% of what it did in 1932…according to gold.
[quote]Big Banana wrote:
[quote]Brother Chris wrote:
[quote]Big Banana wrote:
[quote]orion wrote:
It is interesting that he knew that before he was head of the Fed, that he knows it now and that he tripled the money supply anyway.
[/quote]
Yup. He is an asshole. He knew it was wrong and he did it anyway.[/quote]
Um…Greenspan didn’t take us off the gold standard. Once we were off that it all went to hell.[/quote]
Who said he took us off the gold standard? He increased the money supply. He artificially adjusted interest rates.[/quote]
Yes, and as all inflationary policies do they collapse a countries’ currency. Greenspan sped up the process, FDR cranked the generator to the printing press.