Quote:
Originally Posted by Ferd
Well Loveshiscountry, I am WILLING TO LEARN.
I WANT someone to explain how it works. As of yet, no one has.
As for looking at history, I have. In fact I had a double major in college. HISTORY and ENGLISH... no small feat for a dyslexic who cant spell his way out of a wet papper bag... before computers were in vogue...
the American Economy during the Gold Standard days was fraught with boom/bust cycles and even some manipulation from powerful interests.
PLEASE i am begging you to provide some instruction on how RPs gold standard would work. I have listed very clear concerns and am very happy to listen to someone...anyone who can address them.
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The way I learned about the gold standard and how it would function in comparison to the current fiat currency system is:
I read books.
Now based on your posts it seems you are not one patient enough and demand instant gratification, so book reading may not be your thing, but if it is: "
End the Fed" by Ron Paul is a good start, only about 200 pages. If you really want the nitty gritty: "
The Creature From Jekyll Island" by G. Edward Griffin. A much longer read, but will explain to you everything about the current money system, how the federal reserve, and there's many chapters that refer to the gold standard. Great history lessons right there.
As for my dumbed down explanation:
First off, where you are wrong is that
it is not Ron Paul's Gold Standard. Ron Paul simply believes the Free Market will determine what commodity is best to back the dollar. It could be a precious metal like gold as gold has been the popular choice for currency backing over the course of civilization, but I think it could be oil or some other energy resource as well.
Ron Paul simply wants off of the fiat currency system that has no backing to move to a commodity based backing of the currency.
What this does is it prevents inflation of the currency. If you can't print more dollars than are currently available in the value of gold, then you can't inflate the money supply. To understand this, you need to understand how the current system works (again, read those books, I don't you don't like to hear it, but that technology that lets you learn something in a matter of seconds like they have in the movie "the Matrix" hasn't been invented yet.)
As of right now, private banks are in control of our money supply and they print and loan money that they create out of thin air. The largest entities that borrow this newly created money are the elite corporations of the world, other banks, and The United States Government. The problem with this, by satisfying the instant demands of these entities through loans that aren't always intended to be repaid and often aren't (look up deficit spending or "Keynesian Economic Theory"), you decrease the value of the dollar each time you increase the money supply. This instantly helps those who touch the money first and who loan out the money, and it affects others like you and I later.
How does inflation hurt us? It causes prices to increase of our daily goods and services that we rely upon. All the while wages are decreasing over the last 50 years in relation to inflation rates. So basically you are making less money every time the Fed prints a Billion dollars because your wages aren't increasing as fast, but the prices of things you buy are increasing much quicker.
There are many other factors to rising prices, particularly government "regulation" and bureaucracies, but inflation is called a "hidden tax" because you and I are paying for that newly printed money, we just pay it later through higher prices.
If you went to gold standard, you could not print more money than is available in gold reserves, thus holding the Fed (or whatever organization is in charge of money, US Treasury maybe) accountable for keeping the money supply in check. Right now
there is nothing keeping the supply in check. Money is created daily via printing press and computer without justification and at the price of inflation.
If you don't believe this, check the price of gold's activity in the last 10 years. See what it compares to in 1979 (the last recession) when it was at it's peak. Here's a hint: Gold's highest point in the 1979 recession era was $800 an ounce.....today it's somewhere between $1750 and $1850. That's in 30 years, the value of the dollar has been decreased by more than half it's value. What cost you a dollar in 1979 costs you two today.
There's a reason this happens, few in power are benefiting from this at our expense. We are paying the harsh price to line the pockets of a few. The United States was intended to be a Republic based on democratic principles of election. Today it is a
Monetary Empireas it serves one sole purpose. That is to expand it's empire through monetary purposes via debt leverage, inflation, and resource domination.
I hope this helps, I'm sure there's a couple errs in my explanation that I'm sure others will correct for me.
Honestly though, you want to be informed? You want to understand? Stop watching the news, read a book.
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