Lee Rogers does not understand the point of having modern money

I have always liked the IntelHub.com as they provide a more educated and investigative approach to whats going on in the world than many conspiracy websites. This time though, Lee Rogers is out of his depth.

In his obviously communist and isolationist rant he proclaims Ben Bernanke made an insane statement while testifying in front of a Congressional Committee during an exchange with Congressman Ron Paul.

The statement that Mr. Bernake made was that "gold is not money". In the modern sense of money he is correct, gold is not money, it is a commodity.

Lets make this easy because Lee Rogers needs it to be easy. If we have a one dollar bill it is worth one dollar; I think everyone can understand that. Now lets assume that we are making a gold one dollar coin to be valued at one dollar. That means with the current price of gold being $1590 per oz the amount of gold our one dollar would require is 0.0178 of an oz, a rediculously small amount.

Now lets assume that the price of gold goes up by 20% overnight to $1621.8 that one dollar gold coin is now worth $1.20, if however gold went down 20% your $1 coin would only be worth $0.80 where as your one dollar bill is always worth one dollar.

So using Lee Rogers insane logic, and using a gold dollar you could easily wake up one morning to go to work, drive to the toll gate on the highway and when you go to pay the dollar fee, they ask you for one gold dollar and 20 cents as the value has dropped over night. This is also called hyper inflation as it would mean that your inflation rate was 20% a day !!! this is what killed Zimbabwe and Argentina.

Gold as money simply does not and will not work in our modern world. Money can not have a floating value against other currencies and as a commodity; world economies would collapse.

LINK to Lee Rogers Rant

as your one dollar bill is always worth one dollar.

Do you honestly believe this? So then, you posit that all the oil producing nations are wantonly "raising prices" instead of accepting the fact that the dollar is worth less(not to say worthless yet) than it used to be. "Dollars" are also commodities. As you have more supply, their value goes down just like any other commodity. Also consider that the value of the "dollar" has declined because it is backed by the full "faith"(how often does our government lie?), and "credit"(now being reviewed and likely devalued by multiple rating agencies) of the US government(an insolvent body if there ever was one). A "dollar" is not always worth a dollar.

reply to post by sonofliberty1776


This is why the genreal public and governemnt were taken out of money supply. For two thousand years we lived through very rapid periods of boom and bust in a little as three years. The modern money system has kept everything very stable since the end of the second world war.

The only reason the public are now complaining is that things are a little tough and they want more hand out, which can not be afforded. I dont remember'you all complaing during the 80's and 90's when life was in general VERY comfortable.

it is a very similar situation to those that buy stolen property. when they are the ones buying it they rationalise that they might as well have it than someone else. but when they are the ones being robbed they explode into a rant on how someone (Government) has to do something to protect THEM!

People do not want to change things because they disagree with the way they are done, they want to change things when they no longer benefit from them !!! !!!!

Originally posted by theregonnakillme
reply to post by sonofliberty1776

 

This is why the genreal public and governemnt were taken out of money supply. For two thousand years we lived through very rapid periods of boom and bust in a little as three years. The modern money system has kept everything very stable since the end of the second world war.

You are out of your mind, and YOU obviously don't understand the money system in the least. You've got it exactly backwards. There was no such thing as inflation over 200 years in the US, until 1913. What else happened in 1913? The FED was started.

reply to post by CaptChaos


1873, 1884, 1893 & 1907 try reading books instead of watching Youtube videos! this isn't college where they give you the answers. Do some Research !

You just said the same thing as inflation and deflation..

if your gold is worth 10% more then its worth 1.10 or whatever you said..

They do the same thing with money.. THe more money in curculation means less it is worth.. less money in curculation means more its worth..

Here is something for you to consider.. I saw this today on AOL bla bla..

Read more here

The Consumer Price Index, the government's key inflation measure, fell 0.2% in the month, led by a 6.8% drop in gasoline prices over the same period. It was the first time in a year the monthly CPI reading decreased.

Economists surveyed by Briefing.com were expecting the rate to fall by 0.1% in June.

"The decline in overall inflation is a positive for consumer spending," said Joseph LaVorgna, chief U.S. economist for Deutsche Bank. "In general, lower gasoline prices are hugely stimulative to households - every one cent decline in gasoline prices frees up $1 billion in aggregate cash flow."

So it dont matter what we have..

I honestly dont understand this money gig also.. it is all a form of debt that is all.. the money in your pocket that you have is owed to someone.. it is not yours.

Gold is a mere commodity ?

Gold is best described as an [international] currency with commodity characteristics/applications. Along side the EUR, JPY, CHF etc, central banks hold Gold as a significant percentage of international currency reserves, e.g., US/74% - Germany/70%. In keeping with this "tradition" as Bernanke recently defined it, is it any wonder that bullion banks and major brokerage houses trade Gold on their currency desks...not their commodity desks ? Gold competes with the dollar, Euro, and Yen in international currency markets. This function is most obvious when you see a day where Gold is trading up in tandem with a rising USD...that my friend is Gold trading as the safe haven currency of choice.

Maybe Lee Rogers should have used the term 'currency' instead of 'money'. If you reside in the USofA clearly you can't saunter into your neighborhood WalMart, fill your basket with $1500 worth of items manufactured in the Peoples Republic of China, then hand the counter person a 1oz GAE as payment. We all know that Gold did circulate as money some seventy odd years ago, and we also know that Gold isn't currently accepted as a means of exchange for goods and services....unless you happen to live in Utah I would assume that Lee Rogers is aware of this obvious fact also. No, in order to get your hands on those cheap Chinese goods first you'll need to convert your international currency - Gold, into domestic currency - USD. By the same token you can't shop at WalMart-USA using Euros or Yen...first, you'll need to exchange these currencies for USD....just like your Gold.

Yes, to a degree Gold trades as a commodity, but more importantly, Gold is a reliable store of value and a safe haven currency....the only distinction to be made is between 'domestic' and 'international'.

As I've said in the past, when central banks begin hoarding pork bellies and grains along with their Gold...maybe I'll begin to consider Gold a mere commodity..

GL