Because it is just paper. We still have lots of gold in fort Nox (spelling ) for backup if the dollar becomes worthless.

[edit on 12-4-2005 by ulshadow]

Remember the government also decirculates and destoys vast sums of cash daily. Inflation is quite low at the moment, and this is certainly not a problem.

Originally posted by djohnsto77
Remember the government also decirculates and destoys vast sums of cash daily. Inflation is quite low at the moment, and this is certainly not a problem.

Right, that was mentioned earlier. $696,000,000 printed per day. 95% of which is to replace the old stuff leaving 5% as the new stuff. 696,000,000 x .05 = $34,800,000. So almost 35 million bucks a day new. The question then is whether or not that actually equals out with some real resource that we've produced.

Also, the whole paper money thing you mention ulshadow, is exactly why the dollar IS worthless. Because of it being "just paper"(although it's not paper), should actually make it worth about $0.50 for a whole 3 ring notebook full of the stuff.

Well, actually, whatever Gold is still at Ft. Knox (most has already been collected by the international banks) doesn't really belong to us, as we've been bankrupt for decades.

The federal reserve notes are of value because we place value on them. Think about it; as long as the grocery store will take that worthless paper for a bag of fruit, milk and cereal, I'll continue to have breakfast.

War scrip (paper money) is used during times of war. If you'd read the constitution, you'd see what our money is suppose to be. Laws of Nations figure that internal commerce is done with silver while international trade is conducted with gold.

These above mentioned facts are just that - facts. So, what huge clue about the current state of the union do you now have? Couple that with other clues, such as the executive flag being displayed in every coutroom across the nation, and you should have major bells going off in your heads right about now.

I love this quote!!!

“If the American people ever allow private banks (the Federal Reserve Banks) to control the issue of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered..” --Thomas Jefferson

[edit on 12-4-2005 by mOjOm]

I think this information is accurate about the fort knox bullion.

Amount of present gold holdings is 147.3 million ounces (1 troy ounce equals about 1.1 avoirdupois ounces). The only gold removed has been very small quantities used to test the purity of gold during regularly scheduled audits. Except for these samples, no gold has been transferred to or from the Depository for many years. The highest gold holdings was 649.6 million ounces, on December 31, 1941.


I believe it has a set price doesnt it? Something like 42.22 an ounce.

Economics 101. The United States has the most robust ecomomy in the world. Yes, it is in debt and will probably be so indefinately, but as long as the economy grows, it doesn't matter. The problem is, the debt is begining to catch up with the GDP. The dollar keeps its value with the faith that the debt can be paid back at some time in the future or the economy will always be robust, however, the debt should be a grave grave concern.

To sum it up, it's kind of like a rich person who has "good" debt which is used to establish capital. The person may be in debt to buy stock or to start a business, and as long as the lender has faith that the loaned capital will reap pay itself back in some way, then the situation is okay. US consumers buy more goods then probably the rest or most of the world, thus many countries benefit economically from US importation of their goods. American companies also profit by importing to the US from forein locations so the US economy continues to grow, and the lack of jobs is the consequence of an overly lean economy.

A true economic expert would correct some of the things I said because I don't know how to fully articulate the message I was trying to convey, but I did lay out a basic idea of why the dollar retains its strenght.

Surely a big part of the $ 35 mill is to cover wear and tear, pennies lost under the sofa and things that can be measured in official statistics.

Funny enough, you fail to mention that under your opinion MOST currency in the world is in fact 'monopoly money'. Not too many modern countries back up their dollar (or Euro, pound what ever) with gold or anything else.

So stop trying to take a snipe at America - I am sick of that attitude. If you actually put any effort and research into this you would realise that the US does the same thing as every one else. Please change your topic to 'WORLD ECONOMY: Monopoly Money Factory', otherwise all you are doing is taking another jab at America.

Listen EVERYTHING is part of the GLOBAL FREE-MARKET! Currency works with Supply & Demand - just like anything else - it is a Product ITSELF! There is still Lots of DEMAND! The Market Adjusts ITSELF! All "VALUE" is Perceived in the Eye of the Beholder (That’s why that neat little Eye is on the Back of the Dollar Bill). Cash - Checks - Paper Money of any Kind is just a Medium for Transactions/Trade & Commerce - of various Products & Services! Paper is a Medium for Contracts & Legal Agreements! Believe me there are PLENTY of Profit Hungry Corporations out there that will Suck up the Slack! The Economy was Designed to go Round & Round in Circles!

Our Currency is Backed up - if by anything - by our Military!

The problem with paper money is simply inflation. Just because just about every country does it does not mean it's good.

What is the value of a dollar? It used to be that of 371.25 grains of silver (and technically still is if the Coinage Act hasn't been abolished.) Now, it's an arbitrary value that only means something as long as the rest of the free market believes a dollar is worth something. Yes, it works now. Yes, with a robust economy we can escape the problems. But spending power of a dollar is slowly shrinking. If you look at the present value of silver (something like 7 dollars an ounce), the dollar is worth only a fifth of what it should be worth. Just because it took a few decades doesn't make it any less wrong than if it had happened overnight. The international banks have been sucking the value out of your money, and the speed at which they have been doing so is irrelevant.

Originally posted by American Mad Man
Funny enough, you fail to mention that under your opinion MOST currency in the world is in fact 'monopoly money'. Not too many modern countries back up their dollar (or Euro, pound what ever) with gold or anything else.

So stop trying to take a snipe at America - I am sick of that attitude. If you actually put any effort and research into this you would realise that the US does the same thing as every one else. Please change your topic to 'WORLD ECONOMY: Monopoly Money Factory', otherwise all you are doing is taking another jab at America.

I never mentioned that any other country was any better, I clearly used the United States as an example. I could use Canada as an example, we are no better off, but then again we are not spending billions on wars etc. Plus our dollar is lower than the american.

The initial topic was why the american dollar remains high after all this.

Read the last line of my first post in this thread:

I would just like some explanation on why the us dollar remains high.

The US dollar remains so high because people believe it is worth something, because the USA is such an awesome nation. (I mean that in a literal sense, as in "provoking awe") That's it.

Originally posted by Dulcimer
I never mentioned that any other country was any better, I clearly used the United States as an example. I could use Canada as an example, we are no better off, but then again we are not spending billions on wars etc. Plus our dollar is lower than the american.

The initial topic was why the american dollar remains high after all this.

Read the last line of my first post in this thread:

I would just like some explanation on why the us dollar remains high.

But why always single out the US? EVERYONES money remains high and we ALL print more and more money. We spend more because we have more. It's that simple. I just am really sick and tired of all of the US bashing that goes on. I mean right now I am staring at the 5 topics in 'politics and scandals' and the headlines are:

United Stantes: Monopoly Money Factory

Similarities between the government in the book 1984 and the US public schools - it's scary.

Would the US ever invade Canada

Every freaking day I see this crud and I am getting sick of it. Those topics are as true for every other country in the world as they are for the US, yet everyone singles out the US.

In response to your question, the dollar remains high because it is the basis of the most powerfull economy on earth. If ANY country should have it's currency fall, it would be every single one in the world BEFORE the US.

Inflation is good for corporations, especially multi-national corporations. Bad for little people, good for executives. Its the same in every country. A better question, why is GBP so expensive? Also, why hasn't GBP changed to Euro?

Originally posted by American Mad Man

Originally posted by Dulcimer
I never mentioned that any other country was any better, I clearly used the United States as an example. I could use Canada as an example, we are no better off, but then again we are not spending billions on wars etc. Plus our dollar is lower than the american.

The initial topic was why the american dollar remains high after all this.

Read the last line of my first post in this thread:

I would just like some explanation on why the us dollar remains high.

But why always single out the US? EVERYONES money remains high and we ALL print more and more money. We spend more because we have more. It's that simple. I just am really sick and tired of all of the US bashing that goes on. I mean right now I am staring at the 5 topics in 'politics and scandals' and the headlines are:

United Stantes: Monopoly Money Factory

Similarities between the government in the book 1984 and the US public schools - it's scary.

Would the US ever invade Canada

Every freaking day I see this crud and I am getting sick of it. Those topics are as true for every other country in the world as they are for the US, yet everyone singles out the US.

In response to your question, the dollar remains high because it is the basis of the most powerfull economy on earth. If ANY country should have it's currency fall, it would be every single one in the world BEFORE the US.

i know it may upset you, and i myself dont single out countries, i posted about the gomery scandal in canada.

if you want to support the united states, why not do some reasearch and get some facts and figures on canada.

i think it would be interesting.

Originally posted by Dulcimer

i know it may upset you, and i myself dont single out countries, i posted about the gomery scandal in canada.

if you want to support the united states, why not do some reasearch and get some facts and figures on canada.

i think it would be interesting.

It's not that I want to support the US in this case. I am simply sick of the US being singled out for stuff that is true in every country. The US prints more money then it shreds, JUST LIKE EVERY OTHER COUNTRY.

It has nothing to do with the US - it has to do with a certain groop of people in this world who want to see the US fail. Why don't you make a post like this about EVERY individual country if you are not trying to single them out?

Originally posted by American Mad Man

Originally posted by Dulcimer

i know it may upset you, and i myself dont single out countries, i posted about the gomery scandal in canada.

if you want to support the united states, why not do some reasearch and get some facts and figures on canada.

i think it would be interesting.

It's not that I want to support the US in this case. I am simply sick of the US being singled out for stuff that is true in every country. The US prints more money then it shreds, JUST LIKE EVERY OTHER COUNTRY.

It has nothing to do with the US - it has to do with a certain groop of people in this world who want to see the US fail. Why don't you make a post like this about EVERY individual country if you are not trying to single them out?

1- becaue i would be banned for spam
2-the united states is a good example.