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If Gold is not money then why does the US Mint currently sell Golden Eagles in dollar denominations? Why did the US used to issue gold pieces with a number of different dollar denominations?
Is Bernake simply making a generalized statement?
If as Bernake notes in the linked video that treasury notes are not money and gold is not money then what specifically qualifies as money?
Is this crazy day on this forum. Gold isn't money any more than silver or copper. My watch is made of gold, is it money too? Because some money is made of gold doesn't make gold money. Some money is made of paper. Is paper money?
All of what you say, I can agree with, however Paul did say, as I heard in that video that gold has been used as a valuable exchange item for about 6,000 years. That part of the video told me that Paul may well be one of those people who think the Earth has been here for only 6000 years. I wonder how many supporters of Paul believe that. I don't.
Why would you think that RP is a creationist? And what the heck does that have to do with gold?
You have to actually understand the topic before a respectable, serious discussion can commence.
lol, I've been on the other side of the counter and had people attempt to pay me in both a gold coin and an ancient silver note. Did not accept either as the business had a policy on what could and could not be accepted.
It would be like trying to pay in Euros or Loons. They have a monetary value stamped on them, right?
I will have to mention to you that the value stamped on a Euro is determined by where you try to spend it. It has an exchange value in this country and may not be worth as much as its supporters think it is.
I just posted a little story about how our dollar is not worth a dollar in Australia. Nope, only about 99 cents.
Perhaps being backed by "nothing" contributes to out of control inflation? Correct?
So the government can create money right-- out of thin air?
That thin air you mention is just what our money is backed by. Well, maybe all want to accept the word of the government about that worth but those words were put into use before the 21st century when our money became much more worthless than ever before. All that debt we are debating about today has created a situation that will result in very high inflation soon and then we will find out how much money we have available.
Is this crazy day on this forum. Gold isn't money any more than silver or copper. My watch is made of gold, is it money too? Because some money is made of gold doesn't make gold money. Some money is made of paper. Is paper money?
My OP never suggested any gold was money: reading is fundamental.
Federal reserve notes are not dollars. Gold and silver coined by the US are dollars but not money. Is something other than dollars money?
No, the questions were rhetorical. Try not to be so snarky.
So do you not see any problems with fiat currency?
Fiat currency in itself isn't a problem. Quite opposite in fact. The problem is in a private company, The Federal Reserve Bank, that has been set up as the company store. It sells us dollars as debt with interest. Then it turns around and sells our debt to, essentially, collection agencies for less than face value. After it takes it's cut, it hands back the revenue generated from selling our debt to someone else and calls it profit. Yay! Most 5th graders can tell you those numbers add up to a big negative.
A true fiat currency (and the company store scrip we buy and sell with is most definitely NOT fiat) provide a buffer against market whims. A currency based on any commodity can be too easily manipulated and could even be used as a devastating weapon against the issuer. The problem isn't with fiat money. It's with the Federal Reserve's scrip.
07-13-2011, 01:14 PM
2K5Gx2km
n/a posts
Quote:
Originally Posted by psulions2007
As a definition as a medium of exchange, it relies on two parties agreeing that it holds value as a medium. If one party disagrees, then it isn't a medium of exchange and therefore it isn't money. I can take paper clips... which do hold some value... to the store and attempt to pay for a pound of beef with paper clips... however, the store will disagree that the paper clips hold value as a medium, therefore it isn't money.
The person receiving the medium has to believe they are able to use it again as a medium. For a gold coin, they have to believe they can give it as change or deposit in the bank. Neither one is necessarily going to be able to happen.
Well of course - now your talking like a free marketer, and why do you think people do not understand these truths about gold and silver?
1) Do they not hold value?
2) Are they illegal to use as money?
3) People have used them for money - I have personal bought goods with silver.
So, what in my post was wrong and why does the public not feel comfortable with using it while at the same time their purchaing power (in $$) is going down.
It is a matter of ignorance which is perpetuated by our government in order to keep us on paper. Also, stop trying to make generalized statements about what someone els is suppossed to value - if someone wants to value paperclips then so be it - typical elitist statement about what you think people want or must use in order to satisfy their wants or needs.
Don't stop believing Roy, because once you do, it becomes just another dirty piece of paper.
Frank, more than once in the early 50s when money was worth much more than today I resorted to using $1 bills to clean my bum when there were no weeds handy in the field i was working in. Wrinkled paper money is softer than most TP although the value was quite a bit when I was being paid only about $8.75 per hour.
That pay rate sounds pretty good when you stop to think that an 18 year old tractor driver could buy over 30 gallons of gas with one hour's pay. Yep those things were just dirty pieces of paper when they were needed for something other than buying things with.
Wow! How can ANY American watch that video and NOT understand that Ron Paul is the only voice of sanity and reason in Washington? How can anyone not see that Bernake and every other sycophant of the Big Government and Big Business Power Machine are traitors and criminals that need to be hung from the nearest tree?
Our federal government, under both Bush and Obama, spent over $5 TRILLION in just the last few years and handed it to the ultra-rich Big Businessess. Not a penny for the working class who would have used the money to pump up the economy. And the response from the Fed is "WE DIDN'T ACTUALLY SPEND ANY MONEY! WE'RE A PROFIT CENTER!"
Do they really think we this moronically stupid? Yes, they do. And if you don't vote for Ron Paul in 2012, even if you have to write his name in, you might as well wear a t-shirt proudly proclaiming:
"I'm not WITH stupid, I AM stupid--tax me even more!"
How any American can pay attention to the criminal activities in Washington, and support anything other than totally stopping ALL taxes and dismantling the joke that steals from the working class, to feed the already ultra-rich, who already have 98% of the wealth in the nation?
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