What If the Dollar Falls?

[Lightbringer]

stfu fiat currency banker cock smoker.

did you look up about the federal reserve shares, cretin?

What shares? Link up, I'd love to read about it.

 

[Lightbringer]

There is no such thing as a 'petrodollar'. Oil is traded using the currencies of the buyer or seller, usually the seller. Buzzword fallacy.

There is but it's not what people think it is. The petrodollar value was in diplomacy not economics.

 

[Lightbringer]

Give Me The Link!!!!!!!

Give me the 6% link.

 

[ptif219]

Saudi Arabia is not a BRICS. BRICS is an acronym that stands for B.razil, R.ussia, I.ndia, C.hina, and S.outh Africa.
It is not an economy. It is not a currency.

Things are changing China is buying oil from Saudi Arabia

 

[Lightbringer]

Things are changing China is buying oil from Saudi Arabia

You think that means things are changing?

 

[ptif219]

You think that means things are changing?

They are using China currency

 

[Lightbringer]

They are using China currency

So what? How is that changing anything?

 

[Port Tack]

There is no such thing as a 'debt ceiling'. Buzzword fallacies.

Call it whatever the fuck you want asshole, if the congress does not raise it anyone with savings in something like a retirement account will see that balance cut as much as in half. If they are living on social security those payments will stop. I don't imagine a dumbfuck like you gives a shit because you are too stupid to understand the ramifications.

 

[Walt]

The dollar is not the peso. The Thaler is not the dollar or the peso.

When the Spanish produced Thalers, they called them "Dollars". It was still a large silver coin, nearly an ounce in weight. The new USA created a paper currency, that they promised to redeem for Spanish Dollars, known as the US Dollar. They redeemed them for slightly lighter silver coins. In Mexico, the Spanish Dollar was called the Peso. After Mexican independence, they created a Mexican Dollar coin, which was also called the Mexican Peso coin.

The USA was mostly a silver standard country at first, but always had a little bimetallism. The problem with bimetallism is that the government is forced to defend a set exchange rate between two metals that will change in price over time. Silver turned out to be inflationary, in that huge amounts of silver were found over time.

An interesting fact, gold is much more common in the solar system than you would assume from the surface of the earth. That means that we might soon be importing huge amounts of gold, and it might become inflationary too.

 

[Walt]

Whole economies using just a single metal as the currency has already worked.

The Western Roman Empire switching to the gold standard is correlated with its collapse into a dark age.

 

[Kamala Trump]

What shares? Link up, I'd love to read about it.

Bank Members
The 12 regional Federal Reserve banks are set up similarly to private banks. They store currency, process checks, and make loans to the private banks within their area that they regulate. These banks are also members of the Federal Reserve banking system. As such, they must maintain reserve requirements. In return, they can borrow from each other at the fed funds rate when needed. As a last resort, they can also borrow from the Fed's discount window at the discount rate.7

To be a member of the Federal Reserve system, commercial banks must own shares of stock in the 12 regional Federal Reserve banks.

https://www.thebalancemoney.com/who-owns-the-federal-reserve-3305974

 

[Into the Night]

Things are changing China is buying oil from Saudi Arabia

So?

 

[Into the Night]

They are using China currency

No. They are using SARS. China is converting yuan to SARS to conduct the transaction.

 

[Into the Night]

Call it whatever the fuck you want asshole, if the congress does not raise it anyone with savings in something like a retirement account will see that balance cut as much as in half. If they are living on social security those payments will stop. I don't imagine a dumbfuck like you gives a shit because you are too stupid to understand the ramifications.

Retirement accounts are not invested in debt. They are invested in assets, typically a cross section of the stock market.
Social security is communism, but they will not stop because the government doesn't borrow more money.

 

[Kamala Trump]

So?

so the petrodollar is no longer being arbitrarily propped up.

it matters, dufus.

 

[Into the Night]

When the Spanish produced Thalers, they called them "Dollars".

A Thaler is not a dollar. The Spanish never used dollars. They used escudos, and later pesetas (the root that the Mexicans later took the word 'peso' from.

It was still a large silver coin, nearly an ounce in weight.

Escudos were gold coins. Pesetas used silver.

The new USA created a paper currency, that they promised to redeem for Spanish Dollars, known as the US Dollar.

There was no paper currency in the US at the time.

They redeemed them for slightly lighter silver coins.

There was no paper currency in the US at the time.

In Mexico, the Spanish Dollar was called the Peso.

No. Spanish used pesetas. Mexico coined pesos.

After Mexican independence, they created a Mexican Dollar coin, which was also called the Mexican Peso coin.

There was no Mexico before Mexican independence.

The USA was mostly a silver standard country at first,

The US used gold and silver.

but always had a little bimetallism.

Learn what this word means.

The problem with bimetallism is that the government is forced to defend a set exchange rate between two metals that will change in price over time. Silver turned out to be inflationary, in that huge amounts of silver were found over time.

The government never had to 'set an exchange rate' at all.

An interesting fact, gold is much more common in the solar system than you would assume from the surface of the earth. That means that we might soon be importing huge amounts of gold, and it might become inflationary too.

From where? Are you aware there are shipping costs?

 

[Into the Night]

The Western Roman Empire switching to the gold standard is correlated with its collapse into a dark age.

No. Rome fell because it became a dictatorship and raised taxes to obscene levels, and was later overthrown by it's own people. The first gold coin in Rome was the aureus, minted from before Christ to the time of Constantine, when it was replaced by the solidus. Too bad you never learned the history of Rome.

 

[Into the Night]

Bank Members
The 12 regional Federal Reserve banks are set up similarly to private banks.

Nope. No depositors.

They store currency,

Not a bank. A warehouse.

process checks,

That's a clearing house. There are several such clearing houses. The Federal Reserve is just one of them. Not a bank.

and make loans to the private banks within their area that they regulate.

They do not make loans.

These banks are also members of the Federal Reserve banking system. As such, they must maintain reserve requirements. In return, they can borrow from each other at the fed funds rate when needed.

This part is correct. Banks borrow from each other. This is why a bank failure affects other banks.

As a last resort, they can also borrow from the Fed's discount window at the discount rate.7

The Federal Reserve does not make loans. The 'discount window' you speak of is really a grant program.

To be a member of the Federal Reserve system, commercial banks must own shares of stock in the 12 regional Federal Reserve banks.
...deleted Holy Link...

There are no shares of stock in the Federal Reserve. The Federal Reserve is a government agency.

 

[Into the Night]

so the petrodollar is no longer being arbitrarily propped up.

it matters, dufus.

There is no such thing as a 'petrodollar'. Buzzword fallacy.

 

[Kamala Trump]

There is no such thing as a 'petrodollar'. Buzzword fallacy.