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Jeff
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Re: A Libertarian Approach To Foreign Policy
Reply #30 - May 29th, 2019 at 4:27pm
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SkyChief wrote on May 29th, 2019 at 11:04am:
fixed that for you.   Wink

The dollar collapses a little each day.  It has lost over 97% of its value since 1913. 

97%      Shocked

https://comparegoldandsilverprices.com/wp-content/uploads/dollar-devaluation-191...
If you draw the graph with the value scale (vertical) equal in length to the time scale (horizontal) it looks even more dramatic...

Also, it should be noted that the serious devaluation began in 1913... What could possibly have caused that? "Progressives" in charge of the government? Or the creation of the Federal Reserve "system"? Yes.
  

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Re: A Libertarian Approach To Foreign Policy
Reply #31 - May 29th, 2019 at 10:25pm
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SkyChief wrote on May 29th, 2019 at 11:04am:
fixed that for you.   Wink

The dollar collapses a little each day.  It has lost over 97% of its value since 1913. 

97%      Shocked

https://comparegoldandsilverprices.com/wp-content/uploads/dollar-devaluation-191...


It bewilders the mind, but, it seems, 97% depreciation over a hundred years is survivable, and probably among the best performances among national currencies during the same period.  Believe it or not.

I guess the trick is to make it so slow that no collapse of confidence happens.

It's 97% with the help of:

- Confiscation and ban of gold for Americans in 1934.
- Winning World War 2 and setting up institutions to support the dollar for decades.
- Forcing poor/weak countries to owe massive amounts in dollars in order to jack up demand for dollars.
- Conducting coups, assassinations and wars against disobedient governments over the decades.
- Getting Mideast oil countries to support the dollar with their oil in exchange for regime support.
- Getting Japan and Western Europe, then China to support the dollar with their productivity while their costs were cheap.  Getting all other countries to do the same to less dramatic extent.
- Using the international 'gold pool,' derivative trading, etc. to suppress the prices of gold and silver over the decades.
- Swallowing the pain of 20% Treasury yields circa 1980 when things were really not looking good for the dollar and its support system.  (This was the only real sacrifice by America in support of its own hegemony.)
- Being among the best places to invest, by and large, over most of the last century.

Imagine where the dollar would be if any of these factors had been missing...
  
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BobK71
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Re: A Libertarian Approach To Foreign Policy
Reply #32 - May 29th, 2019 at 10:39pm
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Jeff wrote on May 29th, 2019 at 4:27pm:
...it should be noted that the serious devaluation began in 1913... What could possibly have caused that? "Progressives" in charge of the government? Or the creation of the Federal Reserve "system"? Yes.


It was the historical forces that made the gold standard untenable by the early 20th century.  The classical gold standard was already replaced by the dollar-heavy gold-exchange standard by the 20s.

The entire multi-century drama is, in turn, driven by the core nature of the imperial system, i.e. theft and deception.  Everything else was/is just a diversion of the blame.
  
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SkyChief
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Re: A Libertarian Approach To Foreign Policy
Reply #33 - May 29th, 2019 at 10:54pm
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BobK71 wrote on May 29th, 2019 at 10:25pm:
It's (depreciation) 97% with the help of:

- Confiscation and ban of gold for Americans in 1934.
- Winning World War 2 and setting up institutions to support the dollar for decades.
- Forcing poor/weak countries to owe massive amounts in dollars in order to jack up demand for dollars.
- Conducting coups, assassinations and wars against disobedient governments over the decades.
- Getting Mideast oil countries to support the dollar with their oil in exchange for regime support.
- Getting Japan and Western Europe, then China to support the dollar with their productivity while their costs were cheap.  Getting all other countries to do the same to less dramatic extent.
- Using the 'gold pool,' derivative trading, etc. to suppress the prices of gold and silver over the decades.
- Swallowing the pain of 20% Treasury yields circa 1980 when things were really not looking good for the dollar and its support system.  (This was the only real sacrifice by America in support of its own hegemony.)
- Being among the best places to invest, by and large, over most of the last century.

Imagine where the dollar would be if any of these factors had been missing...

We still have inflation.  - A tax which will always be immune to legislation.
  
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Jeff
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Re: A Libertarian Approach To Foreign Policy
Reply #34 - May 30th, 2019 at 7:53am
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BobK71 wrote on May 29th, 2019 at 10:25pm:
It bewilders the mind, but, it seems, 97% depreciation over a hundred years is survivable, and probably among the best performances among national currencies during the same period.  Believe it or not.

I guess the trick is to make it so slow that no collapse of confidence happens.

When you're stuck with a fiat currency and legal tender laws, it doesn't matter if you have some false confidence in the currency or not.
  

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Jeff
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Re: A Libertarian Approach To Foreign Policy
Reply #35 - May 30th, 2019 at 7:57am
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BobK71 wrote on May 29th, 2019 at 10:39pm:
It was the historical forces that made the gold standard untenable by the early 20th century. 
I would say rather that is was the desire of governments to have the power to control (inflate) the supply of money so they could use the wonderful new tool imagined by Lord Keynes in order to insure constant steady economic growth and eliminate those nasty economic downturns.

But the desire of rulers to debase money long predates Lord Keynes...
  

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Re: A Libertarian Approach To Foreign Policy
Reply #36 - May 30th, 2019 at 8:00am
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SkyChief wrote on May 29th, 2019 at 10:54pm:
We still have inflation.  - A tax which will always be immune to legislation.
Our fiat money and the Federal Reserve system were created by legislation. Legislative powers can be used to undo what has been done.

I know you are aware of the Chinese Communist Party's hints about making their money gold backed... It's part of their plan to gain economic mastery of the world. Of course in the case of China, it would be a decree by the rulers rather than legislation that changed things. Cry
  

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Re: A Libertarian Approach To Foreign Policy
Reply #37 - May 30th, 2019 at 1:47pm
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Jeff wrote on May 30th, 2019 at 7:57am:
I would say rather that is was the desire of governments to have the power to control (inflate) the supply of money so they could use the wonderful new tool imagined by Lord Keynes in order to insure constant steady economic growth and eliminate those nasty economic downturns.

But the desire of rulers to debase money long predates Lord Keynes...


As I wrote elsewhere, debasement/inflation happened in spite of, not because of, the wishes of the top elites.  (Now that may very well be the wishes of the likes of Sanders, Warren, etc.  But they're just there to take the blame -- they won't really run things even if they're elected.)
  
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Jeff
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Re: A Libertarian Approach To Foreign Policy
Reply #38 - May 30th, 2019 at 3:46pm
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BobK71 wrote on May 30th, 2019 at 1:47pm:
As I wrote elsewhere, debasement/inflation happened in spite of, not because of, the wishes of the top elites.
Please explain why governments would not want to inflate the supply of money.

My understanding is they love to inflate the supply of money so that they can borrow lots of it and then pay it back in money of less value. They can also stimulate their economy, in the short term...

I understand that unscrupulous or careless private banks would create and circulate too many banknotes, which made it possible for them to loan out lots of "money" they didn't really have and earn lots of interest by doing it, but they are the banks which went under first in economic downturns, and if people got wind of the fact that they were creating too many notes, they'd stop doing business with them.

As a State Bank, is what the Bank of England tried to do not the same as an unscrupulous private bank? Did they not rely on their reputation to enable them to circulate more notes than their reserves could safely back? Is that not the inflation of the money supply that the English government wanted (and got) from the Bank of England?



  

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SkyChief
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Re: A Libertarian Approach To Foreign Policy
Reply #39 - Jun 19th, 2019 at 11:20am
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Jeff wrote on May 30th, 2019 at 8:00am:
Our fiat money and the Federal Reserve system were created by legislation. Legislative powers can be used to undo what has been done.
AFAIK, there is only ONE way to end inflation:

Back the currency with some commodity, and absolutely require that the currency can be converted ON DEMAND with the commodity.

Meaning that the only way the money supply can be increased is if the (backing) commodity is also increased.

Once this relationship is achieved, inflation becomes impossible.  Military aid to foreign countries becomes impossible.    Intervention and regime changes become impossible.

I think I'm on to something here. . .
  
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