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Wiki"under the gold standard, a free banking system stands as the protector of an economy's stability and balanced growth... The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit... In the absence of the gold standard, there is no way to protect savings from confiscation through inflation."
Originally posted by marg6043
Are you are you you mind, congress is going to give full power now to the fed to be in charge of all liquidity !!!!!!!!!!!!!!!!!!!!!!!!
They are not going to be disbanded They are the government now and they are getting bigger and better.
Thanks to a good for nothing congress controlled by those behind the power of the Fed and the tax payer dollars.
Originally posted by 44soulslayer
reply to post by whatukno
The dollar is a de-facto oil standard currency.
It's only unstable because :
1. Uncurtailable demand
2. Standardised against a consumable (as opposed to the static gold)
3. Oil is controlled by nations unfriendly to the USA
Originally posted by whatukno
reply to post by TheWalkingFox
Like I said before you can't put it all in gold, put it also in wheat, oil copper, silver and gold. Commodities that can back all paper assets.
& don't issue more currency than can be backed by the commodity it represents. That's just foolish.
Why should our entire monetary system be based on PURE GUESSWORK?!? Really answer me that? Instead of being based on at least some actual source why do we back the whole system on GUESSES?!?
Now look at the mess we are in because of that system! Yes there were rushes on the banks in the times when gold prices fluctuated, but now people have no choice when the value of the market falls. They don't even have the option of cashing in worthless paper for a tangible good. No they get bubkis nada ziltch, zip. Sorry charlie, you get nothing. Good system!
I have to absolutely love the sheer apathy and lack of motivation that people have about affecting real change in how our country works. This can do nothing attitude is exactly what got us into this mess to begin with. It's also makes me glad our founding fathers didn't share this attitude or we would all still be living in the colonies, and all be subjects of England.
[edit on 9/19/2008 by whatukno]
Originally posted by TheWalkingFox
So basically a straight barter system with promissory notes? "I'll give you this piece of paper worth X amount of gold if you give me THAT piece of paper worth X amount of wheat"?
Then only a very few people will be able to buy or sell. populationis a huge reason why we use a fiat economy.
WHY SHOULD ALL CAPS AND EXTRA PUNCTUATION MAKE UP FOR LACK OF A COGENT ARGUMENT?????
You're not listening. The economy was pure guesswork when there was a fixed standard. Not just pure guesswork, but pure guesswork that kept crashing and failing, leaving many, many people penniless, and which prevented America, for all its resources, from actually being much beyond what, today, we would call a third-world nation.
...But that's exactly how it was when the system was on a fixed standard. There were more bank notes than there was gold to back them up. So when people panicked, only the first people to show up got their money. The problem is no different today, except for one thing - the value of our money is actually far more stable, and people have to actually work at screwing up the economy.
Don't blame the fiat economy for this trouble, buddy. Blame bad practices by investment bankers and the steady stream of deregulation handouts from Republican Washington. Just as in 1929, it's a lack of watchdogging and a splurge of absolutely stupid business practices leading to our crash, not the system that the money is based on.
it was motivation that got us off the gold standard, which is the direct cause of American prosperity (well, that and the devastation of potential competitors in WW2).
You wish to go back to what amounts to the Neolithic age of our nation's history, to a system that provably did not work then and just as certainly will not work now, for no reason other than you refuse to place blame where blame is due - the fat cats and investors who's shady business deals have landed us here and the republicans who have encouraged, funded, and continue to fund them to do so.