What's so great about the Gold Standard?

Dumb comment.

 

stocks are based on the productivity of the company that sells them, which is good because stocks never ever go down.

The US dollar and any other fiat currency is basically a stock in the country. When the stock is rising, it's a good thing for everyone with that stock, but when the country is no longer productive or fiscally sound, the stock price collapses. I'm sure you could have gotten a lot with the tech stocks you owned in 1992. after the bubble burst in ~2000, you couldn't buy chewing gum with them.

 

If our currency is pegged to gold, then it's not fiat - it's fractional reserve. What don't you understand about that?

Great detective work, you're a sleuth.

Prove it.

No, just you.

 

You have repetetively made this claim and I have asked you many many times to provide proof and you have failed to do so. It's safe to say you're just talking out of your ass.

 

Squidward summed it up best:

What's good for the country is what's good for the self-serving perpetrators and idiots, for the simple fact that it allows them to stay in power. But if the interests of the country and the interests of the self-serving perpetrators conflict (as would happen under a gold standard), the solution is obvious. The people will get the shaft so the politicians and bureaucrats can continue to serve themselves efficiently.

 

Technically you're right, but a common misconception is that it encourages saving. The inflation/deflation rate when gold is used as money is approximately zero-percent on average across time. That means that gold as money doesn't encourage consumption any less than it encourages saving. It provides the perfect balance of both, while simultaneously maintining the purchasing power of savings by keeping prices stable.

The US has never had a true gold standard, it had a fractional reserve standard from 1789-1971, and then a fiat standard from 1971-present.

There are actually 4 types of currency that I'm aware of:

1. Barter
2. Receipt standard (true gold standard, never used in US)
3. Fractional reserve standard (used in US from 1789-1971)
4. Fiat standard (used in US from 1971-present)

That cannot happen. Governments always abuse fiat currencies because politicians and bureaucrats are self-serving perpetrators and idiots.

There is no need to worry about any of these things when gold is used as money. And your 4th point always happens with fiat currency anyway.

 

If you're going to go that far, why not just legalize competing currencies altogether and let the free market decide which currencies are the best?

I agree that it's going to take a serious monetary crisis before Americans wake up and realize they have been electing the same people to government for the past 100 years.

 

Because history has taught us that government backed fractional reserve currencies always eventually degenerate into fiat currency by continuously pushing reserves lower and lower until eventually they hit 0%.

 

It's good to see that you are finally admitting that you were completely absolutely 100% wrong in claiming that the US was fiat before Nixon delinked the dollar from gold.

 

What governments?

So because the government outlawed alcohol in the 1920s that means it wasn't successful? Any thinking person realizes that your logic behind this statement is flawed.

I agree that a legal tender fractional reserve standard is not a sustainable solution.

There's nothing wrong with that. If I were a corrupt politician, I'd do everything I could to get as many votes as possible too.

 

A "country"? You're blurring the distinction between government and the people. You can't do that.

What does the Federal Reserve Note have to do with productivity in the US? All the government has to do is spend a certain amount of money and the Fed will create the money to make it happen.

 

The US was fiat before Nixon delinked the dollar, lol. Do you understand what fiat is?

 

All Govts

Non-sequitur

So you disagree with 99% of educated economists. Please, you would be laughed at outside of the internet just like I laugh at you on a daily basis.

So why would you choose fiat money if it is inferior to the gold standard if you were looking to get more vote?

 

The democratic system does not reward long term financial considerations, it rewards vote buying and a good way to buy votes is to bribe the people voting for you with paper coming off a printing press, you cannot do this with an economy using gold as money since you cannot print gold.

 

Ahhh, I get it. So fiat money allows the Govt to give people an income so they can buy food, shelter, transportation, clothing, and health care with out being limited to how much of a shiny metal they have. What evil monsters they are!!

 

I see you have still failed to provide a source for your claim.

Fiat is a currency that has 0% backing. If a currency can be traded for gold, that means that it does not have 0% backing.

 

The US was not on a receipt gold standard, ever. It's safe to assume that you're just talking out of your ass again.

No it's not. Your claim is that receipt gold standards have failed just because they have been outlawed. Just because something was outlawed does not mean it failed.

More baseless claims from the resident troll. It's safe to assume that you're just talking out of your ass again.

Of course. If I were a corrupt member of Congress, why on Earth would I advocate a monetary system that would put a limit on how much money we could spend?

 

Here's a source you can relate to...

In early 1933, in order to fight severe deflation Congress and President Roosevelt implemented a series of Acts of Congress and Executive Orders which suspended the gold standard except for foreign exchange, revoked gold as universal legal tender for debts, and banned private ownership of significant amounts of gold coin. These acts included Executive Order 6073, the Emergency Banking Act, Executive Order 6102, Executive Order 6111, the Agricultural Adjustment Act, 1933 Banking Act, House Joint Resolution 192, and later the Gold Reserve Act.[2] These actions were upheld by the US Supreme Court in the "Gold Clause Cases" in 1935.

Source: http://en.wikipedia.org/wiki/History_of_the_United_States_dollar#The_Gold_Reserve_Act

Please provide a source that says we were not fiat between 1971. Thanks! And please apologize for lying once again.

 

Fiat money does absolutely no such thing. Real labor is what gives people an income so they can buy food, shelter, transportation, clothing, and healthcare. Money is only the medium of exchange that is supposed to represent and maintain the value of that labor. Fait currency fails miserably at that.

 

We were on a gold standard.

It doesn't exists, so therefore it failed.

Coming from the a gold standard advocate, lol!!

Good question. Coming from a member of society, why on Earth would our country put a limit on how much we can spend based on a useless shiny metal object?

 

The word fiat appears nowhere in your source.

The burden of proof is on you to provide proof that we were on a fiat standard before 1971.

(*)(*)(*)(*) you

 

So what if fiat currency leads to more labor due to the fact there is more demand for goods and services? Lol, your theory is humorous, I'll give you that.

 

If the gold standard is suspended than what is it?

Already proved it

That's not an apology.

 

You can't blur the distinction between a receipt standard and a fractional reserve standard. They are two very different forms of notes. Any educated economist would laugh at you for doing that.

Only due to artificial intervention by force. If left to its own, it never fails naturally.

I'll take that as an admission that you're incapable of providing a credible source to back up your baseless claims, therefore by default I accept your admission of defeat.

You don't have to. You should be free to use whatever type of currency you want. See how many people would accept your worthless fiat notes in a free banking system.

 

It doesn't. See post 125.

Lol yeah it is pretty humorous Lol Lol Lol Lol LolLolLolLolLolLolLolLolLolLolLolLolLolLolLol