The American Dollar

Brent

Brent

Ahorrado por Gracia
Our currency is not an honest form of money, because there is nothing of true value to back it. What we need is a return to the silver standard, or some form of precious alloy, for the sake of restoring stability to and confidence in our money system.
 
Grind said:
i'll take yours off your hands :)
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No thanks. My point here wasn't to suggest that the dollar is useless. Rather, I am suggesting it is dishonest, and prone to instability. It only has value because we agree it does, not because it is actually valuable. It is just paper.
 
Brent; you are a moron. There is no reason to return to a "gold standard" or a "silver standard" or a "precious alloy". Gold and silver are not intrinsically valuable per se......they are worthless in and of themselves just like paper dollars. The *only* reason gold and silver have value (same as the dollar) is because *other* people think it is valuable. You said this yourself about dollars, but the same is true for metals.

Any exhange system ultimately cares about the goods and services a money form can buy them, not the money itself. And this is just as true for gold or dollars.

The gold standard is ridiculous and there is no way in hell America would go back to such medieval times. Who lacks confidence in our monetary system?
 
Cook,

Is paper a limited commodity? No. Gold and silver, however, ARE limited commodities. There is a limited supply of gold and silver, and there is a demand for them. Therefore, these commodities have a real value.

Paper is in demand, but the supply is hardly limited. We have billions of trees and other plants we can use to make paper. By contrast there is no way we can "make" gold and silver.
 
LOL dickweed. Most money in our economic system isn't "paper", it's digital. I get paid via direct deposit, and use online bill pay, use my credit card for purchases, checks for rent, etc.....I use less than $60 cash per month. The only reason I need cash is for black market transactions (i.e. drugs).

So no, the fact that a "dollar" is paper money is largely irrelevant as the paper is hardly the largest part of money in circulation......it is part of the M1 category but hardly not the largest.

....you have a complete lack of understanding of monetary economics.
 
dlescook said:
LOL dickweed. Most money in our economic system isn't "paper", it's digital. I get paid via direct deposit, and use online bill pay, use my credit card for purchases, checks for rent, etc.....I use less than $60 cash per month. The only reason I need cash is for black market transactions (i.e. drugs).

So no, the fact that a "dollar" is paper money is largely irrelevant as the paper is hardly the largest part of money in circulation......it is part of the M1 category but hardly not the largest.

....you have a complete lack of understanding of monetary economics.
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My reference to paper is a figure of speech, Cook. Electronic money is the same thing. It says it has value, but it really doesn't.
 
LOL,

Moron you can artificially expand the supply of gold just like money.

No one is going to keep gold with them at all the time. What do they do? They deposit it in a bank, and they think they still "have" the gold. The bank turns around and lends out that gold to other people. Now two sets of people "have" the gold. Funny, how it doesn't matter whether it's gold or dollars.

It's just like shorting a stock brent. It artificially increases the supply of that stock. Through my broker I own shares of lots of stocks lets say. Someone wants to sell a stock they don't own, the broker allows this and its called "shorting". Just like a bank, the broker takes my shares (w/ out my knowledge) and lends them to another investor that sells the shares immediately on the market. The supply of that stock has just now increased, as I still think I own the stock and so does the guy that just bought the shares that were shorted out of my account.

Economics isn't about a particular underlying or unique commodity. There is nothing that makes gold or silver special.
 
Brent said:
Our currency is not an honest form of money, because there is nothing of true value to back it. What we need is a return to the silver standard, or some form of precious alloy, for the sake of restoring stability to and confidence in our money system.
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The only thing that makes something worth something is the fact that you think it is. It's pointless to "back up" a monetary system, since the only thing that makes gold and silver "worth" anything anyway is the same thing that makes moeny worth something. It has no real utility, but is valued only for it's ability to be traded.
 
Brent said:
Cook,

The solution is to ban fractional reserve banking.
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The solution to what dickhead? You haven't even described a problem.

You want to limit/expand the money supply? That is what the FOMC does, through reserve requirements, funds rate, and buying/selling bonds on the open market.

I highly doubt that you of all people would understand how the money supply should be targeted.
 
Brent said:
No thanks. My point here wasn't to suggest that the dollar is useless. Rather, I am suggesting it is dishonest, and prone to instability. It only has value because we agree it does, not because it is actually valuable. It is just paper.
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That's a misconception.

EVERYTHING has value only because we think it does! What other reason would something have value? God you're an idiot. What's so much more valuable about gold than a controlled fiat money supply? You can hang it around your neck?
 
dlescook said:
The solution to what dickhead? You haven't even described a problem.

You want to limit/expand the money supply? That is what the FOMC does, through reserve requirements, funds rate, and buying/selling bonds on the open market.

I highly doubt that you of all people would understand how the money supply should be targeted.
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Banks giving out money they don't have is a problem.
 
Watermark said:
That's a misconception.

EVERYTHING has value only because we think it does! What other reason would something have value? God you're an idiot. What's so much more valuable about gold than a controlled fiat money supply? You can hang it around your neck?
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So much for Milton Friedman, eh?
 
Do you have any idea how much it would hurt the economy to have an inflexible money system and no banks?

This reminds me of the guy in Iran who has basically nuked the nations economy because he's about to ban taking in interest because it's against muslim doctirine. The stock market of Iran has fallen by almost half since he's taken power.
 
Brent, who's telling you all this stuff? Really? Like dles said, nothing is inherently valuable. Basing currency on the scarcity of any particular commodity would inherently lead to a celing on wealth. What are you smokin?
 
Watermark said:
Do you have any idea how much it would hurt the economy to have an inflexible money system and no banks?
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Silver is inflexible?

Where did I say no to banks? I said no fractional reserving.

The founders would support what I've said.
 
Watermark said:
The founders would probably shoot you.
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Not Alexander Hamilton, Patrick Henry, and many others with whom I see eye-to-eye. Not all founders were "libertarians." In fact, I would say less than a third of them could be described as libertarian. Many were Monarchists -- to them, liberty meant independence, not the "freedom" to do whatever we want to do.

What would you rather have, Watermark? A dollar you can trade for silver at the US Treasury, or a dollar which is backed by nothing and can be easily manipulated? Sure, you can trade dollars for silver by purchasing silver, but the value of the dollar is not directly connected to the value of silver as it should be.
 
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