A Mental Walkthrough on how the United States monetary system actually works!

The Weimar Republic was not on the bring of destruction because it's currency. It printed tons of money because it was on the brink of destruction. There I fixed it for you.

Let me ask you a question. If the Weimar Republic was on the gold standard would they still be around today and why?

 

So I guess constant inflation that completely devastated their Economy because people weren't getting the cash flow but, rather the Government was is nothing to examine at all. Are you in an Economic Cult? Our Lord FIAT saved you didn't it?

 

My economics is based on reality. I'm saying fiat money is limitless but at any current time you know how much exists. Right now we know how much money exists. Limitless just means they can produce a limitless amount of money. It doesn't mean a limitless amount of money exists.

Gold standard advocates are hilarious!!

 

Actually, we are both correct. The Weimar Republic had to pay off its debt from WWI, or else it would be on the brink of destruction. It decided to go off the gold standard in favor of a paper currency, the mark. This made the situation worse, producing hyperinflation.

To answer your question, no, the Weimar Republic was on the brink of destruction one way or another. The question was not whether their government would fail, but when.

 

Answer the question. Would the Weimar Republic have been successful if it were on the gold standard?

The economic cult I'm in is based on normal economics. People who advocate the gold standard are not considered "normal" by any real economists. So I guess I can say you are in the Ron Paul cult? Lol

 

No. I consider myself apart of the Neoclassical school. I also subscribe to the Austrian School, and to the Keynesian School.

 

So you admit that being on the gold standard would not have saved the Weimar Republic?

So what exactly is it about the gold standard that makes you think America would be better off than every other country out there that has chosen to leave the gold standard?

What is it in gold that makes a country better off? Is it simply because it is shiny and you can find it in the ground?

 

Why the hell does it matter how much exists right now? What really matters is home much more will exist in a few months or a year. All the while the value continues to decline because there is more Supply and thus the Demand drops meaning the Market doesn't consider the Product (US Dollars) to be worth what it is so the value drops. Understand? You're stuck in the present while Austrian Economics are preparing for the future.. that is why the FIAT system fails because it doesn't prepare the future. It prepares for today... All of History proves FIAT to be nothing but, a tool to fix problems short term and effectively drain the wealth of the masses.

Sorry I advocate tangible materials and not something that can be written on paper to equate to the value of the planet (In their heads!).

 

It would have maintained some form of economic stability outside of their foriegn debt. Going off the gold standard accelerated their demise.

 

Actually to answer your question... the Germans backed their currency by their Productivity and Available resources rather than Blind Faith. Which is why the Germans recovered instead of basing it off of nothing.

Aren't the real Economists the same ones who couldn't predict the Economic Collapses? Yeah... about that... I guess your top dogs are nothing but, top idiots who have no clue how Economics works beyond their own Little World they magically create in their heads. There must be something similar that Keynesian Followers do similar to that of Scientologists... Do you guys get a metal bar to evaporate your worries into?

 

They had no Gold :\

But they later learned they could base it off of other resources which helped sparked a massive recovery.

 

The Rentenmark wasn't based off gold. They based it off industrial goods and mortgaged land.

However, prior to adopting the mark, the currency that led to hyperinflation, the Weimar Republic was on the gold standard.

 

Indeed I was just merely stating they didn't have the Gold so they switched to what you said... Which is in a previous post on a different page. Lucky me for not including more info...

 

I've read them all. I am a Modern Monetary Theorist. I think our current economic system has nothing to do with the Neoclassical school, Austrian School, or Keynesian School. It has some overlap... but the role of the Government in a fiat system like ours is 180 degrees different than the past.

 

Explain the differences.

 

Neoclassical economics is 21st century economic theory. Yes. It originated way back in the 1800's, but it still is alive and well today.

 

Then you should be filthy rich right now. Because people who tangible materials have a lot more value now than in 1913. That is the point. Money isn't supposed to a tangible material. It is a medium of exchange. You aren't supposed to collect it or keep it or sell it. It is meant to be used to purchase tangible materials or to invest in the production of tangible materials.

Indirectly, crazy tin foilers like you who purchase tons of gold are doing exactly what the system wants. Get rid of your money, do not save it because it will not be worth the same in the future. Then the person you buy gold from now has the same choice you did. What should he do with his money. He better not keep it because it will lose value. Welcome to America, the land of the largest consumer in the history of the world!! Thank you inflation!!

 

Of all four economic systems?

 

As to how Humans are suddenly different.

 

And it is wrong today. The economic system is completely different than the neoclassical thought process back in the 1800s. The Government provides a much different role than it did back then.

 

Humans aren't different, the system is different. The role the Government plays is different.

Our entire economic infrastructure is completely different than the past. It is a completely new evolution of economics. And every country will follow us because it does lead to maximum productivity and maximum growth which is evident by almost all economic standards of America.

 

Your entire point is that since the US Dollars are not tangible it's okay to inflate it because it isn't tangible... Alright thanks for clarifying my trust in Humans.

 

Inflation is simply a tax on idle money. It is a necessary evil if you want the macro-economy to reach maximum productivity. It makes you and I want to use our money instead of keep it, which is exactly what you want with a medium of exchange.

 

Lets put it very simply... Humans have not changed like you said. You equate Humans to any level of sophistication or system it's similar to multiplying by zero if Humans are capable of total control. The Free Market & Basing currencies off of tangible materials prevents that Nuclear Blast of multiplying by zero. History has proven that all FIAT papers fail and no matter how well thought out or planned it will fail because Governments are out to protect themselves. So in the end the Currency will fall just as this Republic will fall if we continue down the path of so many other Nations.

 

Inflation isn't necessary to drive innovation... It's a tool used to steal the wealth of others without being seen and it's a lot easier when you have a printing press do it for you. It is simply theft...