why is gold and silver going down right now?

Says nothing about misquoting, do it.

 

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I do not quite understand all of this defending of fiat currency. Is it because it is a sensitive subject? Do Keynesian economics not use expansionary monetary policy to balance deficits? Is it not true that during post ww1 German reformation people were carrying wheel barrows full of worthless notes? How about the confederates during the end of the Civil War? How about the French currency that was used as toilet paper during WW2? Is it not true that the value of fiat currency relies in the confidence of the people? Yes we are ensnared in a 2/3 marginal propensity to consume, but what happens to the confidence in the dollar when we increase supply to pay off debt. I'm actually a little surprised that we are still the world currency.

 

I asked you WHO ARE THE BANKERS. Who are they that they have talk holes and are being accused of some huge conspiracy by you? Are they Arab Oil billionaires?

Are they the Bush family. Are they the Mayflower decedents?

Ruben

 

When people are fully vested in a system then they will do everything they can to defend it. This is why there is such an effort as demonstrated here to discredit bullion buyers and bullion buying no matter what.

 

FWIW - this isn't the topic any longer. This topic has been Fatima's attaching behavior for about 2 months.

But if you want an answer about the German example, it had nothing to do with paper currency, but a result of the political conditions laid out be the Allie powers after WWI, among other factors, like the Russian Famine (while Russia was on the gold standard, BTW). No aspect of a gold standard would have undermined the political conditions of German between the wars. They would have starved regardless.

For Reference BTW



http://wfhummel.cnchost.com/inflation.html

 

I'll try it again. Regarding the first question, please write out your question in a clear interogatory sentence. Phrases such as "this opinion of yours" are not adequate for me to respond since you have misquoted my statements so many times. Why can't you just write out your question?

I'm afraid you are headed down the wrong path again with the second. Under the gold standard, bankers typically discounted real bills. Lending is more of a fiat system commercial banking function. So the question about receiving gold coins over the counter for loans is quaint, but doesn't reflect what really happened. What you imagine isn't the way the system worked, so there is no answer to your question. This is what typically happens in discussions about the gold standard. Everyone thinks they intuitively understand it when few actually take the time to study how it really operated.

 

Bankers run banks. As for the Bush family, I've said before that politics holds little interest for me so I can tell you much of anything about the Bush family.

 

Who runs the Banks Fatima? Who owns the Banks?

Ruben

 

Mr. Brooklyn. I could stand corrected but I believe the bankers in which he is referring to are the individuals that are currently playing chess with our children’s future. The sole motivation behind any firm. "The Stake Holder." Yes in this case many billionaires would be participants. If you think about it a CEO is nothing but a pawn for the stake holders. I believe the invisible character here is this supposed notion of "the good guy." Whatever nationalism was present during the 1950's is long gun, and there is no doubt that the short and skinny is about the bottom dollar. To the extent that the ICC has been infiltrated by corporate propaganda.

 

Calm Down


Calm Down

 

That doesn't say who they are.

 

You are not trying to answer my question. You are trying to avoid it. Here it is again.

1. Please give a real world example of how your quoted post worked under the gold standard that existed in the USA prior to 1914.
2. If a person received a cash loan from a banker under the gold standard, what currency did the person receive? If not gold coins then what?

 

You can look up who owns a particular bank on finance.google.com. It will also list the executives.

 

Perhaps you are the one needing an economics course. The federal government has assets of at least $200 trillion. A company that had an asset to debt ratio that high is unheard of. There is no chance of insolvency except among the opportunists who advertise guns, canned goods and gold to scared low education white people on Fox News and talk radio. Gold and silver are at least double what they should be, inflation and tax rates are near 50 year lows. There is a huge pent-up demand after this depression, the US looks in great shape compared to Europe and China (Google "China's Ghost Cities" so see a REALLY SCARY situation. The doom-and-gloom people always get the public's attention (and when every other commercial you see is "buy gold now before it goes to $3000" it's a sure sign that the metals bubble is over (Why advertise to SELL something you are certain will double in price in a year?)

 

So who are they Fatima?

 

Call me doom and gloom, but if I ever have any money I will be investing in wheat, corn, soybeans, gold, silver, aluminum, steel, and cotton. I would not wish to have any money in the USD, and most certainly not in companies that attempt to domestically prosper off of importation.

 

I'll say it again. Regarding #1, you still havent' asked a question. I post many things and I have no idea what post you refer to. It shouldn't be difficult to construct a complete question that does not reference something else. What are you asking?

Regarding #2, your question confuses modern banking practices with what actually took place under the gold standard. In the 1800s, nobody walked into a bank, filled out a form, and walked out with a sack of gold. You might as well demand an anwer to the question of whether unicorns are purple or yellow - when the real answer is that there are no unicorns. But because you fundamentally don't understand the gold standard, you ask questions that make no sense.

 

Perhaps you might want to think about this some more. There is no such thing as an insolvent US government in today's economic system. The US government isn't issuing the money and does not provide any guarantees for it. The money is being issued by the Federal Reserve which is not part of the US government. The Federal Reserve holds the liability for the Federal Reserve Notes, i.e. USD that it prints. It maintains a balance sheet for the base money supply that it controls. By law, the Federal Reserve must balance assets against it's liabilities (the base money supply).

If the day comes where the assets the Federal Reserve holds are worth less than the base money supply, then the Federal Reserve will be declared insolvent. It will have huge ramifications on its acceptance around the world. It will then be the job of Congress to figure out what to do about it as they have the Constitutional mandate. What they will do is unknown because such a situation has yet to occur in the 40 years that we have been on a complete fiat system.

 

I don't know their names. But go to the link I listed and you can look them up yourself if you are interested. The one I did know, off the top of my head was Hugh McColl, the guy who turned the small regional bank, NCNB (North Carolina National Bank) into BofA, but he is retired now. Quite the legend for having done this.

 

I'm sorry but you are mistaken. The Coinage Act of 1792 clearly denotes what currency was at the time. You should brush up on your history before calling other people liars.