Good discussion of why the notion of gold or silver standards is stupid in this day and age. Gold and silver are commodities, just like pork bellies or soybeans. They are worth only what someone else will pay for them. They haven't been "money" for a long time. I once suggested in print that the US back its currency with belly fat. That way, we'd be the richest nation in the world. (for the benefit of the irony-challenged, that was an attempt at humor)
No, nor should we... We back our money with the sum total wealth and resources of the nation. Silver or gold would just be an artificial measure of control, as artificial as any other. A control that can be ignored like any other. Gold and silver were used as mediums of exchange in the past because they had little practical value save for decoration. Today they do have practical value.
It's a tautological fact of economics that all countries in a global financial system will not run trade deficits of exactly zero. As long as the growth in debt does not exceed the growth of nominal GDP, you will be OK.
Nah, that's just a big enough move right before 3 PM that folks I sold the agency bonds too probably hedged by selling Treasuries. Do it enough times that close to 3 PM and you might get a call from SIFMA or the SEC !
My resume highlights my PlayNow experience for 4, er 14 days: https://www.youtube.com/results?search_query=seinfeld,+george+kruger+industrial
The question isn't whether it's possible but whether it's desirable. Are you willing to condemn the economy to widespread deflation?
If that were to occur, the World pop. would need to also show a negative birth rate compared to the present. It may very well be in the cards that in order to save the planet, things may be going in a positive direction right now. A gradual, but steady deflation could happen.
When it takes 15-20 of those federal reserve notes for one Morgan silver dollar that previously was nominally equivalent, people would begin to realize that they were duped into worthless fiat money. The government will never do it! Also, can someone tell me whether $24 trillion dollars in silver even exists? That national debt is supposedly backed by real money. You cannot back it by fiat currency but everyone else's money by precious metal.
U.S. currency is backed by the full faith and credit of the United States. You don't need something from the Periodic Table to back it up.
Quick question, what other uses were there for silver and gold when the Morgan dollar, and gold and silver coins in general, were in use?
If the stages of the rise and fall of great nations seem to be: The Age of Pioneers (outburst) The Age of Conquests The Age of Commerce The Age of Affluence The Age of Intellect The Age of Decadence. You have to wonder at what Age are we as a country and if we could have even gotten to where we are if we didn't have real money, gold/silver during our earlier Ages. By the way, Decadence is marked by: Defensiveness Pessimism Materialism Frivolity An influx of foreigners The Welfare State A weakening of religion. Decadence is due to: Too long a period of wealth and power Selfishness Love of money (see my comment above) The loss of a sense of duty.
We were talking about the feasibility of having metals back the dollar...which isn't necessary because our fixed-income markets are the deepest and most liquid in the world.....and I was talking about moving large sums in and out of those markets at the close of business which is something you can't do if you want to use another country as the Reserve Currency.
Mostly, jewelry and tableware. Silver was used heavily in photography and radiography for over a century. However, in the first half of the 20th century, gold and especially silver had industrial uses. Main industrial use then, as now, was electronics. Other uses were and are various chemical processes and pharmacology. Cal