George Soros calls for death of the USA dollar... Shane Warren sees this in vision?!

Or it's paper that's not backed by gold because it's a scam and the paper gold certificates have no gold stacked up in the vault backing them. And nobody is going to realize it until the system crashes and they open the vaults for people claiming their gold IOU, but there's no gold in the vault because it was a scam. It's the history of money.

 

The USA Dollar is really backed up by the productivity of Americans........

American workers are highly productive because they have an astonishing amount of natural resources,
good free basic levels of education..... good roads and other transportation systems to get products from producer to seller to customer.......

The fact that America has laws that protects consumers is an even more important part of the formula than we realize.......

Even if it was possible to back up the national currency with gold......
it would still be the real productivity of Americans that would back up the currency,........

If a massive supply of gold were discovered in Alaska tomorrow.... but if Americans got so
lethargic and unproductive that the cost of buying the basics went really high........
then we could go into a situation where there was lots of gold or silver in the economy... .but
it could become difficult to buy the basics even with precious metal.

 

Well said, Dennis!

 

The Fed does give permission. It's mandate is to give permission to the point where there is no inflation or deflation ie to keep prices stable.

It failed to do that in 1929, in 1980 but succeeded
tremendously during the recent housing crisis having learned the lessons of 1929 and 1980. Now you've got a basic way to think about the Fed and monetary policy.

 

Totally misses the essence central banking. To say that the Fed merely manipulates the price of borrowing without saying to what end is totally meaningless. It would be like saying the shooter manipulates the direction of the gun without saying who the gun is aimed at and why. It just goes to show that basic economics is far above the average persons ability.

 

Natural resources have nothing to do with it. Saudi Arabia has lots of natural resources and Japan has none. America is great because it has a steady supply of new inventions thanks to Republican supply side capitalism and our Protestant work ethic

 

You said there was not enough gold for a gold standard. I told you there was this much gold per capita today as it any time in history, and then you change the subject rather than admit you were wrong?

 

As I said there is the same amount of gold in the world today as it any time in history so gold standard is very possible if people wanted one which they don't because there is no reason to want one. What we want is a no inflation deflation monetary policy and that policy would be identical with a gold or paper standard. Now do you understand?

 

Weren't discussing the "essence of central banking". My post began by explaining that "Fractional Reserve Banking" as most people learn it is wrong.

 

And I said the "gold" today is paper IOUs which fictionally has gold backing them. The gold that is traded as a commodity on the stock market is the value of soft paper not hard gold.

 

Oh, there's enough gold for a gold standard??? That's what they always think... until the vaults open in times of crisis, when everyone cashes out at once, and there isn't enough gold for everyone.

And anyway, on monetary policy, I would like to see a little deflation of US dollars.

 

you have no idea what subject you are on. If on a gold standard there is enough gold, if govt says there is enough gold when their isn't then you are not on a gold standard. Do you understand?

 

but do you have any reason for wanting deflation??

 

when I said there is same amount of real gold today per capita as 500 years ago I meant it. Do you understand this?? what I said has nothing whatsoever to do with paper gold. Do you understand?

 

no idea what on earth your subject is or what your point is? how can a gold commodity
be the value of soft paper??? Total gibberish!!!!

 

oh I see so you were discussing trivial aspects of central banking and trying to pretend they were important to confuse people????

 

So that when we cut the funding of programs for the poor, to balance the budget, they will have a little boost from lower prices.

 

most learn that Fed controls money supply to avoid inflation and deflation and thus keeps the economy growing steadily to the extend that monetary policy can. When the Fed fails as it did in 1929 or 1980 we have huge huge problems. This is the essence, what you talked about ie making money out of thin air is nonsense and trivia at best.

 

nice try but lower prices cause lower wages so there is no net gain from deflation. Further, with prices dropping there is no reason to buy anything today or tomorrow or next week so you get a huge depression. Do you understand?

 

In addition lower prices will help the middle class because they have stagnate wages.

 

lower prices for goods also means lower prices for wages. Sorry

 

But the value of a dollar goes farther, and a slowdown in sales is just a temporary thing. People don't put off purchases that they need for long.

And this whole idea of people putting off purchases is that in an inflation economy people wait a year to buy last year's model, but that assumes last year's model remains for sale. It won't happen in a deflation economy because people are going to be buying according to their needs.

 

There's a minimum wage. sorry.

 

what does that have to do with subject???

 

I already told you that the wage price goes down too so no net gain is possible!! If a car drops from $40k to 20 k do you think the workers get the same pay??? Think!! There is no free lunch!!