why is gold and silver going down right now?

It isn't my intention to be tested by you. If you understood the Real Bills Doctrine, you would know that what I posted was in context and had nothing to do with Adam Smith's comments on fiat or paper certificates, which were never part of the conversation until you tried to inject it into the discussion. But to someone who only has a gold hammer, everything looks like a fiat nail and you try to turn everything into a conversation about fiat and evil bankers. Well, that isn't the case here so go back and read more carefully.

 

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OK, then you can't give an example of what you state. Thought so.

 

I refer the reader to this photo of Detroit in 1917. This is the result of 125 years of America using the Gold Standard for its currency. Just in this topic it was said that economic expansion was impossible with the gold standard, that it was an albatross around any country's neck that was stupid enough to adopt it, and that gold inventory was irrelevant. Prior to fiat in 1933, America was depicted as an "agrarian" i.e. dirt farmers picking their teeth with straw and using corn cobs to well.. you know.

In summary it was said that a modern economy can't develop under a gold standard. Yet here is Detroit in 1917. Look at the picture and judge for yourself. Everything here is made in America and this city would have been one of the most developed places on the planet when compared to almost the rest of the globe. Contrast this to Detroit of today, after fiat, where banksters call the shots with central planning, too big to fail, and exporting jobs out of the USA.

Your eyes don't lie.



(click on the image to get full size0

 

That's the truth re: Detroit. Used to be a beaut, now a hole. Involves a lot of welfare in that central planning... and it's contagious: http://www.youtube.com/watch?v=1PXoaUhzMS4

 

Now, let's compare images from 1917 vs. images from today for Silicon Valley. Or Atlanta. Or Redmond.

Detroit has lost big in the economic shifts of the last fifty years. Other areas have won. If you're trying to say Detroit's decline accurately reflects the experience of the entire country, you're being silly.

 

Another FLAT OUT lie. First of all, the US didn't have any real currency at all until 1856 and was largely depending on Spanish Dooblans. And THEN they had a silver standard, and the bank collapse following the Jackson close of the US Bank, which killed paper money, through the country into depression. And that is just the beginning of your lies. 1917 SUCKED at the peak of the Flu epidemic as a year when WWI was in the middle of its bloodiest years. Detroit was a little nothing town and the auto industry hadn't even begun to take root until the Ford Model T. Conditions in Urban areas like Detroit were filthy, and Teddy Rossevelt was busy vomitting over the pages of "The Jungle" while JP Morgan was busy bailing out the Stock Market from multiple turn of the century near crashes by litterally walking accroos the stock floor and buying up everything in sight until the slide stopped.

This is the real picture of "Gold Standard" America..



and in 12 more years the whole system spinned itslef into a severe crissis, largely do to a lack of fluid money, with a cascade of banking collapse. It was a darn wonderful time

In a word, either are the most ignorant individual on earth, or just a flat out lier.

 

BTW what was happening in East St Louis on July 1, 1917

Ruben

 

Hello

Making the historical association between a promotion picture of Detroit from 1917 to a successful economic policy based on a gold standard is laughable, except I believe the original poster is serious about it. And the Tzars Russia was on the gold standard as well, was that a miracle of economic success?

Amanda

 

Hello


There was a serious labor strike that ended with 250 workers dead from violence. Can we also attribute that to the Gold Standard?


Amanda

 

Hello


This is the most despicable post I've read on cointalk. How can you talk to someone else like that? Has civility completely abandoned the Detroit area?


Amanda

 

You should read the rest of what he/she writes.

 

Sometimes they might, but your words are very deceptive.

Ruben

 

More 1917 Gold Standard related events

July–September

July 1 – A labor dispute ignites a race riot in East St. Louis, Illinois, which leaves 250 dead.
July 12 – The Phelps Dodge Corporation deports over 1,000 suspected IWW members from Bisbee, Arizona.
July 28 – The Silent Protest is organized by the NAACP in New York to protest the East St. Louis Riot of July 2, as well as lynchings in Texas and Tennessee.
August – The Green Corn Rebellion, an uprising by several hundred farmers against the World War I draft, takes place in central Oklahoma.
August 3 – The New York Guard is founded.
August 23 – Following the detention of an African American soldier, 150 soldiers of the 24th Infantry Regiment march on Houston in what would be called the Houston Riot; four soldiers and 15 civilians die.

 

Hello

This certainly sounds like 125 years of economic progress in the summer of 1917

Amanda

 

Now here is the truth and not the lie

In 1917 the entire gross GDP of the US was 59.7 Billion dollars and the population was 101.7 million people.

http://www.usgovernmentrevenue.com/yearrev1917_0.html

Meanwhile since 1950, real GDP has nearly tripled from about a 250 billion 2005 dollar to 13 or so trillion 2005 dollars, while avoiding anything remotely like the great depression.


http://www.usgovernmentrevenue.com/us_real_gdp_history

So to imply that going off the gold standard in any way negatively affected growth is specious to say the least. And the idea that we can cover the US money needs of 13 trillion dollar GDP based on gold is laughable.

Ruben

 

Correction, the growth is much better that that.

 

I am still stuck here 3 pages back. Banks were not issuing paper during the 130 years the US was on the gold standard?

 

I've posted extensive examples. They are just beyond your comprehension.

 

This is what fatima does. In a conversation about Adam Smith's Real Bills Doctrine and fractional reserve banking, fatima posts a few word quote from Adam Smith about fiat currency and then claims that everyone else doesn't understand what is going on. You see, fatima has read a few internet articles about gold and how evil bankers are using fiat currency to take over the planet, so nobody is permitted to have any other opinion.

 

Still talking about me instead of the topic? When you get around to it, you might want to answer the very simple question that I put to you. You won't do it of course so we get more posts such as this.