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Very Hot Topic (More than 25 Replies) The Return to the Gold Standard (Read 5138 times)
Jeff
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Re: The Return to the Gold Standard
Reply #180 - Dec 26th, 2018 at 3:56pm
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SkyChief wrote on Dec 26th, 2018 at 3:47pm:
Yes, I think that's basically what the meme is hinting at.

Progressive FDR introduced the 1st Minimum Wage law in 1938 as part of the Fair Labor Standards Act (FLSA).
I thought the meme was pretty clearly a denunciation of fiat money.

I think the FLSA was one of the programs SCOTUS said was unconstitutional for want of granted power... Until Franklin D. convinced them to look "deeper" into the Constitution.

Anyway, people have caught on to the fact that the New Deal prolonged and deepened the depression, so why would anyone want to keep any New Deal programs around?
  
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BobK71
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Re: The Return to the Gold Standard
Reply #181 - Dec 31st, 2018 at 9:24am
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Jeff wrote on Dec 18th, 2018 at 4:19pm:
Sure. They stole people's gold and have been selling it for huge profits for a long time, and how much of people's stolen gold is actually left is a State Secret.


Any guesses as to the reason Ft. Knox hasn't been properly audited for decades? Smiley
  
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BobK71
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Re: The Return to the Gold Standard
Reply #182 - Dec 31st, 2018 at 9:45am
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SkyChief wrote on Dec 18th, 2018 at 1:24pm:
Right.  Gold can never be re-valued. The value of gold has remained unchanged for literally thousands of years.

Only a currency can be re-valued against gold.

The US dollar would need to be revalued to be worth approx. 1/42,000 (or .01 grain) of an ounce of gold.

(Meaning the dollar becomes essentially worthless)


Yes, ultimately, state currency has to be continuously devalued against gold, in one guise or another.

What we have today (so-called 'fiat money system') is a flexible and unspoken gold standard.

I think what the elites try to do with cryptocurrencies is to minimize the rise of gold by diluting the demand for it into the new monies.  But this is nothing new, really, and just an extension of what they've done with silver.

Almost as soon as silver was demonetized in the 1870s (and its dollar value had collapsed,) the US started buying silver at market prices (the Bland-Allison Act) and coining it at the old rate (0.77 troy oz. of silver per dollar.)  It just happened 'no one wanted these coins,' so the government was 'forced' to sit on a mountain of silver it had purchased at dirt-cheap prices.

Silver was allowed to rise alongside gold through the 20th century, and when the silver contents of quarters and dimes were worth almost as much as the coins' face values, the government replaced its 90%-silver coinage with base metals, thus conserving its stockpile of silver.

It's the same game over and over again, the issuance of dollars is ultimately tied to the authorities' ownership of natural monies, in the long run, whatever narratives you might hear from the media and economists.
  
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SkyChief
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Re: The Return to the Gold Standard
Reply #183 - Dec 31st, 2018 at 11:21am
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BobK71 wrote on Dec 31st, 2018 at 9:45am:
state currency has to be continuously devalued against gold, in one guise or another...

It's the same game over and over again, the issuance of dollars is ultimately tied to the authorities' ownership of natural monies, in the long run, whatever narratives you might hear from the media and economists.

How long do you think it will take for hyperinflation to happen in the US?

...Or will there be a "currency correction" before then?

  
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Jeff
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Re: The Return to the Gold Standard
Reply #184 - Jan 1st, 2019 at 10:20am
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SkyChief wrote on Dec 31st, 2018 at 11:21am:
How long do you think it will take for hyperinflation to happen in the US?

...Or will there be a "currency correction" before then?

https://serenite-patrimoniale.com/wp-content/uploads/2018/03/purchasing-power-of...
It's actually quite complicated and impossible to predict what the government and it's central bank will do.

Here's an interesting analysis that talks a bit about why we haven't seen the inflation you'd expect from all the "Quantitative Easing".

https://www.cato.org/publications/policy-analysis/should-governments-restrict-ca...


  
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kaz
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Re: The Return to the Gold Standard
Reply #185 - Jan 1st, 2019 at 1:36pm
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SkyChief wrote on Aug 25th, 2018 at 12:13pm:
It won't ever happen


Agreed.  The Gold standard prevents the government from stealing from the American people.  They'll never do it
  

Contest winner:  I predicted Kaz' meltdown
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BobK71
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Re: The Return to the Gold Standard
Reply #186 - Jan 2nd, 2019 at 12:19pm
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SkyChief wrote on Dec 31st, 2018 at 11:21am:
How long do you think it will take for hyperinflation to happen in the US?

...Or will there be a "currency correction" before then?


Hyperinflation has never happened at the top of the imperial system, though inflation can be pretty high, e.g. 1970s US.

Typically, a combination of inflation, debt default, and financial repression follow a financial bust at the center of the world system (US today.)  These, in combination, dilute the severity of each other.

Hyperinflation is an isolated occurrence even at the peripheral of the system.  It is experienced by Venezuela today mainly because the US is punishing a disobedient regime, which then sees it as the least painful of the choices still available.

I'm not sure what you mean by 'correction.'  In the 1860s and 70s, on the verge of the collapse of the British imperial system (due to having issued too much paper money and falling behind Germany in the real economy,) Britain changed the money system of the rich world by moving all large rich countries out of silver and into the gold-alone system.  This enabled its system to survive another half a century.
  
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SkyChief
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Re: The Return to the Gold Standard
Reply #187 - Jan 2nd, 2019 at 1:46pm
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BobK71 wrote on Jan 2nd, 2019 at 12:19pm:
I'm not sure what you mean by 'correction.' ...

By 'correction', I mean something like what Venezuela did back in August last year to stem runaway inflation. 

They dropped five zeroes from the Bolivar to "correct" it.

https://www.reuters.com/article/us-venezuela-economy/venezuela-to-remove-five-ze...

As the US dollar continues to be devalued by inflation, it will eventually become worthless.  There will need to be some form of 'correction'.

The 'official' reported annual inflation rate is 1.9%.     Of course, this is a lie, because the algorithms used to compute CPI deliberately exclude factors like energy and housing. It only uses food and consumables in the formula.

The actual inflation rate is closer to 9%.   
  
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Jeff
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Re: The Return to the Gold Standard
Reply #188 - Jan 2nd, 2019 at 2:22pm
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Inflation is actually around 10% Chief.

http://www.shadowstats.com/alternate_data/inflation-charts

Make sure you scroll down to the second graph...
  
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BobK71
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Re: The Return to the Gold Standard
Reply #189 - Jan 2nd, 2019 at 4:29pm
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SkyChief wrote on Jan 2nd, 2019 at 1:46pm:
By 'correction', I mean something like what Venezuela did back in August last year to stem runaway inflation. 

They dropped five zeroes from the Bolivar to "correct" it.

https://www.reuters.com/article/us-venezuela-economy/venezuela-to-remove-five-ze...

As the US dollar continues to be devalued by inflation, it will eventually become worthless.  There will need to be some form of 'correction'.

The 'official' reported annual inflation rate is 1.9%.     Of course, this is a lie, because the algorithms used to compute CPI deliberately exclude factors like energy and housing. It only uses food and consumables in the formula.

The actual inflation rate is closer to 9%.   


If we assume the 9% rate you state, unfortunately, given the powers still available to the US elites and their allies, I believe the likely outcome won't be dropping of 0's (ie hyperinflation.)

Unless you put most of your savings into cash or equivalents over the 100 years of the Fed's existence, you probably didn't suffer the 95%+ value loss by the dollar.  It's been bad, but not bad enough for a reset of the dollar definition (which would look really bad for the elites and is to be avoided.)

Looking further back in history, ever since the creation of the central bank in the early 1600's, the loss suffered by the currency of the imperial center, even while in decline, has never been totally catastrophic.  The pound went from $4+ during Pax Britainnia to $1.20 today.  Again, bad but not bad enough.

The most catastrophic was probably the mid-19th century default of Dutch government debt.  This has to be put into perspective: it had been a century and a half since the Dutch empire clearly started its decline; it was debt and not money (the gulder was still tightly tied to gold); and it was done not by the Dutch themselves but by the French occupation government which was likely hostile to the imperial system.

Again, we have to be careful of black and white thinking.  Money is fungible, and there are many shades of decline.  The imperial system, since the reign of the Dutch, has helped former hegemons decline gracefully.

Regardless, if we put savings into a mix of gold, silver, and Bitcoin today, we'll probably be OK!
  
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