Gold = $$

I'm curious. If Americas dollar is directly related to the price of gold then why is the price of gold rising while the dollars worth is falling?

Peace. K*

It's not directly related to the price of gold. The US Dollar is not backed by gold, silver, or any other valuable piece such as those. The US Dollar is simply a receipt, a piece of paper, which has a fabricated value.

The true value of the US Dollar is around 4 cents.

I know that the dollars value drops with each subsequent printing, but who determines it's value? How does Our $ differ from other countries? What makes one more valuable than another?

Peace. K*

The Federal Reserve determines everything about the Dollar, pretty much.

The plan is to crash the economy and destroy the middle class. So the US Dollar will continue to fall.

I'm not familiar with other nations and their dollar, so I can't really answer that.

I'm not familiar with other nations and their dollar, so I can't really answer that.

almost every nation has a federal reserve like "central bank" i say almost because i cannot name every last country out there, but i know a majority of them and without exception they all have central banks controlling their currency.

central banks can be akin to being the banker in the game "monopoly" except that you can print the monopoly money and can use as much as you feel like. i would not like to play monopoly against you if this happend.

in short central banks are evil, and the understanding of this system will open many more questions

Andorra and Monaco are the only countries without a central bank.

reply to post by NovusOrdoMundi


oh really? ya learn something new everyday....
at least not everyone in the world is being ripped off.
just curious do you know what their money is backed by? is it gold or silver? maybe oil?

reply to post by TheRepublic


I'm not sure what it is backed by, but I know both countries rely on tourism, if that means anything.

But if they join the European Union, there is an EU central bank.

So in addition to their own central banks, the nations in the European Union have an EU central bank as well.

Two powerful central banks. Talk about getting screwed over.

EDIT: Also, both nations are considered "tax havens". Monaco has no income tax. I'm not sure if Andorra does, but it has little or no taxes being considered a tax haven.

[edit on 10/3/07 by NovusOrdoMundi]

America's money is backed by faith. You just have to believe our system works and will continue to work.

Other countries value their money based on metals such as gold and silver, while some countries base the value of their money on the strength of the U.S. dollar. Then some countries will add a value to their currency which is discounted by still other countries. It's confusing and if you actually understand it all, you'll be a little educated.

reply to post by hinky


What do you mean by faith? What faith should I put in the economy and why?

When you say that some countries are based on gold and others on silver does that mean that the U.S. and Japan is based on gold and silver?

Now you understand America's economy.

In a nutshell. The notion that the U.S. currency being valued on gold or silver goes back to the constitution. In 1933, a law was passed banning private citizens from owning gold. Silver was also included, but more coins were made from silver so this was hard to impose. In 1964, the silver content of the coins were dramatically reduced so the coin would never be more in value from the silver content than the cost of the coin. (the penny suffered the same fate in the 80's and had copper content reduced - it is having problems again with copper prices so high).

The gold standard for U.S. currency was abandoned in 1971 or so by President Nixon. Funny how the Federal Reserve didn't do that, but credit goes to Nixon. A person was allowed to legally own gold again at this time. Since that time, the value of the dollar has floated against other currency.

The value of the American dollar is not pegged to any other currency or metal. A person believes that a dollar is worth a dollar. Other countries have a value to their currency, regardless of how it occurs. The dollar just floats in value.

The price of gold rises as the dollar falls because people use gold as a hedge against inflation.

When the dollar was backed by gold, the value of it would rise and fall with the price of gold. Ever since the U.S. went off of the gold standard, people have used gold to protect themselves from falling currency values in times of high inflation. This is why the price of gold rises and falls inverse to the rising and falling dollar.

When the dollar is weak, people (and countries) want gold.
When the dollar is strong, people want cash.

Originally posted by hinky

The value of the American dollar is not pegged to any other currency or metal. A person believes that a dollar is worth a dollar. Other countries have a value to their currency, regardless of how it occurs. The dollar just floats in value.

The value of the American dollar is in fact pegged to a metal... its called gold.
If you fail to realise that the American dollar is based on the gold standard then you fail to understand economics.

And yes other countries have a value to their currency as well. The EU is also on the gold standard.

The dollar does not just "float" in value. It is controlled under the manipulation of gold by the world bankers.

Originally posted by schlitz
The price of gold rises as the dollar falls because people use gold as a hedge against inflation.

Ok I don't know where you're from but here in America people have no "hedge" against inflation.
I can't exactly take a piece of gold down to the gas station and buy some beer with a piece of gold... and the fact that inflation is happening RIGHT NOW certainly prooves that gold is NOT beign used to "hedge" inflation.

You can buy gold at $370 an ounce. When the dollar falls, the price of gold rises and you can cash that gold in for $380 an ounce. That's called a hedge. It's a real thing, people do it, it exists. Your ounce of gold has protected you from losing money.

--hypothetically--

You are hedging your bet. You're not losing much, but you're really not gaining anything either. This is why gold is, overall, a poor investment. It does not traditionally make money faster than the rate of inflation. If you want to have a liquid asset that protects you from the dreaded inflation monster and falling currency prices, own gold.

[edit on 3-10-2007 by schlitz]

[edit on 3-10-2007 by schlitz]

reply to post by schlitz


Why in hell would I buy an ounce of gold for an unbelievable ammont $380 just to turn around and sell it for a worthless $10? If thats what you they call a hedge I would just call it a total waist of time.

The point here is.. the U.S. economy is in fact based on gold. Who controls that gold... no1 knows.


[edit on 3-10-2007 by Techsnow]

Originally posted by Techsnow


The value of the American dollar is in fact pegged to a metal... its called gold.
If you fail to realise that the American dollar is based on the gold standard then you fail to understand economics.

You took economics back in the 60's. Time to catch up with the new economy. The gold standard was abandoned by Nixon back in 1971. The value of the dollar has floated since then. It is backed only by faith in value.

reply to post by hinky


The funny thing is I never took economics.

The thing you fail to realize is that we are still on the gold standard and this supposed "floating" currency that you believe in so much is in fact only an illusion created by central bankers.

Sure, it doesn't do you a lot of good to buy an ounce of gold, but think of what would happen if you had 5 million dollars in cash under your mattress today. Would that 5 million be worth the same amount in ten years? What if you had 5 million worth of gold today?

reply to post by schlitz


At least some realizes that America IS under the gold standard


To reply, if I had 5 million gold I would probably donate it to charity.