Why do people think countries need centrally planned money?

so you print money and give it to people as income? sheesh. maybe you don't want more demand for apples just like we don't want more demand for horse drawn carriages. why do you presume to know more than the market? if the market wants 80 apples it wants 80 apples.

 

The objective is to get the most transactions possible. If there is someone who wants an apple for a $1 and someone wanting to produce an apple and sell it for $1 and the only thing missing is the $1, then your economy is below productive capacity.

Based on your logic, the economy would best run with $1, since any more money would be inflationary and lead to unproductive growth.

 

I bet you've said this same thing 50 times. You've yet to explain how that goal is worth attaining if it is accomplished through forcing a debt burden on those doing the transacting.

That an engine can be run @ 8000 rpm does not mean an engine should be run @ 8000 rpm, and you've still failed in convincing anyone that it should.

And - in fact - you haven't even tried. You've simply regurgitated the original claim: that it should.

 

Actually I believe I said the economy would run best on $0 because the total stock of gold would be the money supply.

We've been over this and there is not someone willing to buy the apple for $1 after 80 apples have been sold.

 

What debt burden? What debt am I in other than my personal debt?

I don't get what you are even trying to imply here. My point is the more transactions that exists the more labor is required, which means more incomes, which means more demand, which means more production. What is so wrong about that?

 

So what is the value of the total stock of gold, lol?

So you are saying that the more gold we find the more productive we can be? Why not just be as productive as you can be with out worrying about how much gold you find?

What is it with your guys fascination with gold. It is literally a hunk of metal that provides very minimal amounts of material uses.

No, there is not someone willing to buy the apple for a $1 at the current moment... that does not mean someone isn't willing to buy an apple for a $1 if they had a $1.

 

that you would ask this question shows your fundamental lack of understanding about what money is. what is the value of the total gold stock measured in what...? why is it worth knowing what the value of the total gold stock is? is it even possible to know what it is?

what is the value of the total stock of us dollars....?

this also shows your fundamental lack of understanding about money. no, I am not saying the more gold we find the more productive we can be. that is precisely the opposite of what I am saying. I am saying that we can be as productive as is possible if there is never an increase in the gold stock. a limited gold stock would have zero negative influence on how productive we can be. the purchasing power of the gold stock is infinitely variable, so we do not ever need an additional ounce of gold for gold to function as money.

fools who operate central banks can't print gold.

right, so they can go out and earn that dollar by working, that's how the rest of us do it..

 

What? You said our economy should have $0 and be dependent on the stock of gold. So what is the value of the gold stock? What can I get with 1 oz of gold in your hypothetical universe?

Really? Even though they have proven time and time again that deflation is a destructive force to investment and productivity? You are so lost in your understanding of economics that it is mind boggling. Do you want a higher standard of living for everyone or just for money owners?

But fools can dig it out of the ground

Who says the Government has to give it to them with out working for it?

 

yes, the stock of gold will be the money. what do you mean what is the value of the gold stock? that is nonsensical. what is the value of the entire stock of us dollars.........? you can get whatever someone will give you for your ounce of gold, just like you can get whatever someone will give you for a dollar.

everyone is money owner. my goodness. and if they aren't, they can work for some money just like everyone else who has money worked to get it..

since the entire stock of gold known and accessible to mankind will be the stock of money, deflation is not possible. now if you mean that the monetary unit will appreciate in terms of goods and services, yes, it will. there is absolutely no problem with that. no one has ever demonstrated a problem with that.

sure, but only to a certain extent, whereas with dollars you can conjure them out of thin air on to a computer screen to match the number of atoms in the universe. gold production has never been more than a percent or two of the existing gold stock.

if they're going to work for it in the market, why do we need to print more? they can already work for it.

 

Here is a question I have for the gold bugs.

How do we prevent foreign governments from cashing in all their dollars for gold and destroying our economy by sucking every last bit of gold reserves out of the nation?

Starting in 1958 there was a wholesale 'run on the US gold reserves' from foreign governments that last until 1961. Foriegn governments can destroy entire economies with such tactics.

 

I get it. Your entire system is completely and utterly philosophical. It is the survival of the fittest approach... similarly used in 3rd world countries. There is absolutely nothing you can say as to why your system would be more efficient than our current system other than "because I say so". There is no math you can use, there is no empirical evidence you can use, it is simply it will work "because it will work".

Ridiculous!!

 

Because there would be no dollars. Just gold. Nothing to cash in. Right?

 

That looks like a forfeit. Or you could respond to my points.

 

Interesting debate.

I am not positive a gold standard would work.

But I know fiat money isn't.

So I hope gold gets another go.

 

It's impossible to argue with you. You don't have any points. Everything to you is just that the free market will work itself out. I can't say anything because all you will do is respond that it will work itself out. If I say that someone needs a $1 to get an apple, you will just say that they should find a $1 to get an apple.

If I say deflation will happen with a stagnant money supply, you will say then prices will decrease and things will work out.

If I say we need more transactions, you will say whatever amount of transactions happens is the appropriate amount.

You literally have absolutely no structure to your system, it's just philosophical bull(*)(*)(*)(*) that has been proven wrong for centuries.

 

I can see you have some learning and some maturing to do. The points I've made have not registered with you. Read what has government done to our money, or can you not spare an hour to learn about opposing positions?

 

I understand your position. I'm trying to explain to you why it doesn't work and it's why we do not use it. But that is impossible, because "not working" is something that the free market decides to you. "If it doesn't work, then it doesn't work."

 

The questions you ask demonstrate clearly that you don't understand my position, or money in general: "what is the value of the the total stock of gold?"

 

What is the value? How do you determine the value of the total stock of gold. Once you understand that than you will realize that gold is no different than fiat.

The reason why your philosophy is not taught in college is because it doesn't deal with facts or data or solutions. It is simply an ideology that things work out better with out any control.

 

Right, so what is value of the total stock of dollars?

 

All the goods and services it represents

 

Money doesn't represent anything.

 

Sure it does

 

How does it represent something?

 

Go exchange your dollars for food tonight and let me know what that dollar represented.