The Second Crisis of Socialism

[theunbrainwashed]

Originally Posted by box_of_zip_disks

Now, getting to the modern problem goldbugs have with fiat currency, and they pitched a similar fit over the use of silver as a competing metal back in the late 19th century, there isn't enough available gold to cover the size of even the US economy. Even if we were to seize and extract every last ounce of gold on the planet, which would mean no more modern electronics among other problems, the US economy would still shrink severalfold, leading to a far worse catastrophe than we're currently facing.

This is a problem I have with metal-backed currencies. They really are not necessary. Fiat currencies work, all you really have to do is have the Treasury issue it usury free and limit how much money printing you can do in one year to a certain percent. Bill Still, who is a proponent of this idea and the person who wrote a bill to have Congress have a look at it, calls for a fixed 2% annual inflation rate that keeps the supply of money steady and it allows for enough inflation to keep up with population growth (so purchasing power doesn't contract when more people come in means less money) and have steady economic growth without the bubbles and the subsequent busts, in addition to a bank reserve requirement of 100% (no creating money out of thin air as banks currently do now)

[NHartphotog]

Originally Posted by padcrasher

Somebody should write about on how and why these "gold bugs" far out ideas on currency appeal to all these elderly, white, poorly educated, right wingers? It's like a right of passage for them. The "crisis" has been springing up every couple of years for the last 70 years.

I greatly encourage anyone who thinks like this to avoid precious metals.