Banking 1929 verses 2008
- Thread starter A'sD
- Start date
zzzz
2,500+ Posts
The Fed, which you don't like, was created out of the ashes.So what system is it that you propose?
A gold standard? That may give you confidence, but how does a limited money supply help a growing population?
From what I understand you think this will keep prices down (more people + limited money = less money for all)
But how will anything get done? If I have a major project, and there's a limited amount of money, I'll have to pay handsomely to borrow it.
So major projects will cost more. Which means fewer things like apartments, office buildings and factories will be built.
And those that are completed will charge higher rents and prices for their products because their initial costs were higher and there is less competition for what they are offering.
A gold standard? That may give you confidence, but how does a limited money supply help a growing population?
From what I understand you think this will keep prices down (more people + limited money = less money for all)
But how will anything get done? If I have a major project, and there's a limited amount of money, I'll have to pay handsomely to borrow it.
So major projects will cost more. Which means fewer things like apartments, office buildings and factories will be built.
And those that are completed will charge higher rents and prices for their products because their initial costs were higher and there is less competition for what they are offering.
HoosierHorn
500+ Posts
I think A'sD is right about the banking system in it's current form, but I don't know what the answer is. I don't know that gold is the answer (or that it's not.)
On the flip side, I have a view about money. There is no right or wrong about money. If bankers steal your money, your money is stolen. I do have a problem with value being stolen, and i think we put too much of our value in money. Again, I don't know the answer.
Every day, I wake up thinking more about the ethics of money.
I was on a sales call yesterday. People were just making things up - that weren't true, nor were they in those person's influence to make true - to close the deal. I don't work that way. I tell the truth. Funny thing is, I was calling on... wait for it... yep, the Fed.
I should just get money playing by the real rules. I've been getting it by the fake rules. Hustler.
On the flip side, I have a view about money. There is no right or wrong about money. If bankers steal your money, your money is stolen. I do have a problem with value being stolen, and i think we put too much of our value in money. Again, I don't know the answer.
Every day, I wake up thinking more about the ethics of money.
I was on a sales call yesterday. People were just making things up - that weren't true, nor were they in those person's influence to make true - to close the deal. I don't work that way. I tell the truth. Funny thing is, I was calling on... wait for it... yep, the Fed.
I should just get money playing by the real rules. I've been getting it by the fake rules. Hustler.
FondrenRoad
1,000+ Posts
Why move to a gold standard anyways? What real value does gold have? It's just a holder of value for exchange just like fiat money. Like fiat currency, it has no real uses. It's just pretty to look at. You can't eat it or drink it. Its not that great of a conductor. Its too pliable to make weapons. Really, gold was fiat money before we learned how to print. It was rare and difficult to counterfeit, so it was used for barter. Its rarity allowed it to hold value because you couldn't just dig up as much as you needed. If gold could be easily synthesized, then its value would be nothing. With modern science, synthesis of gold from larger elements probably isn't that far ahead in the future.
If you want to back currency with something, use oil reserves, or something with actual value.
If you want to back currency with something, use oil reserves, or something with actual value.
Fried JJ Pickles
1,000+ Posts
Real economic value is in innovation, goods and services. The backing for currency is a minor detail in the big picture.
mishatx
1,000+ Posts
Unlike paper or digital fiat currency, you can't just make more gold. This is an advantage and a disadvantage.
Gold's value is rooted in the fact that you can exchange it later because other people think it has value, because they can exchange it later, etc, similar to fiat money. The practical value of gold on its own is very small, but its rare, shiny and has history, so people want it and trust it.
We should back the dollar with land. Its value fluctuates as much as anything else, and if we need to increase the money supply, we just invade Canada.
Gold's value is rooted in the fact that you can exchange it later because other people think it has value, because they can exchange it later, etc, similar to fiat money. The practical value of gold on its own is very small, but its rare, shiny and has history, so people want it and trust it.
We should back the dollar with land. Its value fluctuates as much as anything else, and if we need to increase the money supply, we just invade Canada.
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