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Quit drinking Ron Paul kool-aid: What are the NEGATIVE consequences to switching to Gold Standard?

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posted on Aug, 12 2011 @ 01:28 AM
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Well, let's just stick to paper.

No negative consequences there.




posted on Aug, 12 2011 @ 01:29 AM
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reply to post by saabacura
 


Whoever said that just because you are on a gold standard it means the business cycle disappers?


Here is some reading on the Austrian argument about the Business Cycle:

Austrian Business Cycle Theory: A Brief Explanation
Business Cycle



posted on Aug, 12 2011 @ 01:30 AM
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reply to post by saabacura
 


You can answer that question for yourself if you read the second link in its entirety.



posted on Aug, 12 2011 @ 01:32 AM
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I believe that Most Ron Paul supporters may have some understanding of gold standard vs fiat... but do not understand the intricacies/consequences of switching from fiat to gold..

In truth, no one knows.

The whole world is based on fiat currency. Our global economy is based on fiat currency.

No country in this whole world goes by the Gold backed currency@@@@



posted on Aug, 12 2011 @ 01:34 AM
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Originally posted by Misoir
reply to post by saabacura
 


Whoever said that just because you are on a gold standard it means the business cycle disappers?


Here is some reading on the Austrian argument about the Business Cycle:

Austrian Business Cycle Theory: A Brief Explanation
Business Cycle


that is what ron paul says. not me.



posted on Aug, 12 2011 @ 01:36 AM
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reply to post by Misoir
 


thanks but explain it to me. in your own understanding..



posted on Aug, 12 2011 @ 01:37 AM
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Originally posted by saabacuraSo basically with the gold standard, I envision the rich hoarding money. Money doesn't flow like above. Money is stagnant. The rich will hoard all the gold/currency and never use it.


So you think this wouldn't happen with paper money?

Hate to break it to you, but we're already there.



posted on Aug, 12 2011 @ 01:39 AM
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Originally posted by Misoir
reply to post by saabacura
 


You can answer that question for yourself if you read the second link in its entirety.


If you are that familiar Austrian economics ideas that you can just post a link...

then just explain it yourself in your own understandings....



posted on Aug, 12 2011 @ 01:42 AM
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reply to post by mileysubet
 

Something called Price Discovery. The amount of gold is irrelevant. Whats relevant is the price. And there is also silver to be considered. Price Gold at $25000/oz and lock Silver to Gold at 15:1. Done.



posted on Aug, 12 2011 @ 01:44 AM
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reply to post by saabacura
 


Actually no he has not, what Paul has said is that the Federal Reserve through the use of interest rate maneuvering is able to cause the boom and bust cycle, as does all Austrian School Economists, because it fosters an environment of debt and mal-investment which would otherwise not be made. Through these mal-investments the results are obvious; you create bubbles which must then burst. By extending periods of low interest rates, rather than allow the market set the rates, you create the systemic threats to the economic structure.


The thrust of the Austrian theory of the business cycle is that credit inflation distorts this process, by making it appear that more means exist for current production than are actually sustainable (at least in some renditions; see Hülsmann [1998] for a "non-standard" exposition of ABCT). Since this is in fact an illusion (printing claims to property ["inflation"] is not the same thing as actually having property; see Hoppe et al. [1998]), the endeavors of entrepreneurs to create a structure of production not reflecting actual consumer time preferences (as manifested in available savings for the purchase of producer goods) must end in failure.


I have provided you so far with 4 links, 1 which will help you understand a transfer to the gold standard and 2 which explain the Austrian Business Cycle. Since you have obviously failed to read even the ones on the business cycle and instead intentionally perpetuate this misinformation based upon a lack of clarity and understanding of the issues at hand, which I have attempted to help you resolve, no longer will I waste my time here and would encourage others not to as well.

mises.org...



posted on Aug, 12 2011 @ 01:47 AM
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double tap
edit on 12-8-2011 by hawkiye because: (no reason given)



posted on Aug, 12 2011 @ 01:47 AM
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Originally posted by saabacura
I guess the negative consequences of changing from fiat to gold...?

all of our current investment strategies are based on the fact of inflation. So you change to gold standard???

What happens to our world????????????????????????????????????????????????



We become wealthy and prosperous and don't have depressions and recessions etc. By the way Ron Paul does not want to go back to the old gold standard. He advocates competing currencies. You would do well to actually study the monetary system and how it works. We had relative competing currencies in the 19 century with a gold standard and were very prosperous up till 1913 except during periods of war.


edit on 12-8-2011 by hawkiye because: (no reason given)



posted on Aug, 12 2011 @ 01:48 AM
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Originally posted by BeyondPerception
Well, let's just stick to paper.

No negative consequences there.


No that was funny


But yeah, we aren't keeping this debt based monetary system it will kills us both literally and figuratively.

Gold and silver standards have of course been done before. As long as we don't explode the note/paper to gold/silver ratio we should be fine. The transition would be the hardest part of course.

And no we don't want a centrally controlled international gold standard monetary system that could be trouble. Hell, I would prefer a monetary system not under central control. It used to be that way and I'm sure we could do it again. Too bad people back then only recently invented the stock market and made stupid decisions with their money. Of course, its that stuff that gave the reasoning for the federal reserve which was one of the biggest mistakes made in U.S. history.

The sooner we get out of this debt based system the better. Collapse of the system is already well under way it won't be much longer until the really bad stuff starts happening to us.



posted on Aug, 12 2011 @ 01:52 AM
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Originally posted by OccultScience
reply to post by mileysubet
 

Something called Price Discovery. The amount of gold is irrelevant. Whats relevant is the price. And there is also silver to be considered. Price Gold at $25000/oz and lock Silver to Gold at 15:1. Done.


This was brought up on Keiser today.

I wonder how it would all play out?

Heck, even the 'idea' of it being discussed, would likely spike the demand for it.

Or would that only be done in secret? Hmm.
edit on 8/12/2011 by BeyondPerception because: (no reason given)



posted on Aug, 12 2011 @ 01:55 AM
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reply to post by saabacura
 


We did just fine when we were on the gold standard. When we were pulled off of it is when we started having spending issues.



posted on Aug, 12 2011 @ 01:55 AM
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reply to post by Partygirl
 


You're not an economist? That's good, 'cause claiming to be an economist is, for all intents and purposes, a lot like claiming to be an alchemist or astrologer.



posted on Aug, 12 2011 @ 01:57 AM
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reply to post by Xcathdra
 


I think you might want to put a little research into the historical boom-bust cycle of the United States (or even world) economy before you make that sort of claim. We had plenty of pretty big depressions while we were on the gold standard. It's not a panacaea.



posted on Aug, 12 2011 @ 02:01 AM
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Originally posted by Misoir
reply to post by saabacura
 


Actually no he has not, what Paul has said is that the Federal Reserve through the use of interest rate maneuvering is able to cause the boom and bust cycle, as does all Austrian School Economists, because it fosters an environment of debt and mal-investment which would otherwise not be made. Through these mal-investments the results are obvious; you create bubbles which must then burst. By extending periods of low interest rates, rather than allow the market set the rates, you create the systemic threats to the economic structure.


The thrust of the Austrian theory of the business cycle is that credit inflation distorts this process, by making it appear that more means exist for current production than are actually sustainable (at least in some renditions; see Hülsmann [1998] for a "non-standard" exposition of ABCT). Since this is in fact an illusion (printing claims to property ["inflation"] is not the same thing as actually having property; see Hoppe et al. [1998]), the endeavors of entrepreneurs to create a structure of production not reflecting actual consumer time preferences (as manifested in available savings for the purchase of producer goods) must end in failure.


I have provided you so far with 4 links, 1 which will help you understand a transfer to the gold standard and 2 which explain the Austrian Business Cycle. Since you have obviously failed to read even the ones on the business cycle and instead intentionally perpetuate this misinformation based upon a lack of clarity and understanding of the issues at hand, which I have attempted to help you resolve, no longer will I waste my time here and would encourage others not to as well.

mises.org...


thanks for posting links. perhaps I will read them when the time comes when I realize that the current system is completely broken and we are going back into the dark ages. The thing we know is better than the thing we haven't known.

Please note, you still have not said any negative consequences other than linking long fringe economic ideas rather than explaining it yourself.



posted on Aug, 12 2011 @ 02:07 AM
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Originally posted by TheWalkingFox
reply to post by Xcathdra
 


I think you might want to put a little research into the historical boom-bust cycle of the United States (or even world) economy before you make that sort of claim. We had plenty of pretty big depressions while we were on the gold standard. It's not a panacaea.


Actually it is you who needs to do a little historical research. The so called boom busts while on the gold standard were a joke compared to the 20th century! They were paltry affairs local and regional due to corrupt banks and did not bring the whole country down such as in 1933 just 20 years after passing the Federal reserve act we had the worst depression in history



posted on Aug, 12 2011 @ 02:07 AM
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Damn almost every post lately keeps coming up double...
edit on 12-8-2011 by hawkiye because: (no reason given)




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