It concerns me about the lack of urgency the government has shown in light of US debt being 85%of total GDP . Should we consider this?
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I think that train has left the stationComment -
No.Comment -
The conspiracy theorists are saying that the UN is actually planning on coming out with a gold bullion coin. I think I've been hearing this for a couple years if I'm not mistaken.Comment -
Cancellation of the gold standard
In the early 1970s, inflation caused by rising prices for imported commodities, especially oil, and spending on the Vietnam War, which was not counteracted by cuts in other government expenditures, combined with a trade deficit to create a situation in which the dollar was worth less than the gold used to back it.
In 1971, President Richard Nixon unilaterally ordered the cancellation of the direct convertibility of the United States dollar to gold. This act was known as the Nixon Shock.
In 1972, the United States reset the value to 38 dollars per troy ounce (122.17 ยข/g) of gold. Because other currencies were valued in terms of the U.S. dollar, this failed to resolve the disequilibrium between the U.S. dollar and other currencies. In 1975 the United States began to float the dollar with respect to both gold and other currencies. With this the United States was, for the first time, on a fully fiat currency.Comment -
what all these people saidComment -
And that would solve what exactly?Comment -
Gold has NOTHING to do with it...
Let's keep it simple here... When the banks loan out money they create it faster then the Fed. by simply creating an account... If I asked for a 100 point loan from "MStallion" he has to FIRST have it THEN decide if I am worthy but it does not work that way with the banks... Your credit score/debt to income ratio yada yada determines if you get the account NOT if the bank has money to lend because they are allowed by law to create money that is not there.. (below is an "OK" explanation by Wiki)...
Reserve requirements affect the potential of the banking system to create transaction deposits. If the reserve requirement is 10%, for example, a bank that receives a $100 deposit may lend out $90 of that deposit. If the borrower then writes a check to someone who deposits the $90, the bank receiving that deposit can lend out $81. As the process continues, the banking system can expand the change in excess reserves of $90 into a maximum of $1,000 of money ($100+$90+81+$72.90+...=$1,000), e.g.$100/0.10=$1,000. In contrast, with a 20% reserve requirement, the banking system would be able to expand the initial $100 deposit into a maximum of ($100+$80+$64+$51.20+...=$500), e.g.$100/0.20=$500. Thus, higher reserve requirements reduce artificial money creation and help maintain the purchasing power of the currency in use.
Reserve requirements in the US apply only to transaction accounts, which are components of M1, a narrowly defined measure of money. Deposits that are components of M2 and M3 (but not M1), such as savings accounts and time deposits such as CDs, have no reserve requirements and therefore can expand without regard to reserve levels.
Ok fellas now everytime the bank approves a loan that loan has to be paid back PLUS interest.. The bank created the money... ok fine that's only one problem... where is the interest supposed to come from which is usually more then the principal.? EVERYTIME a loan is granted the interest on that loan doesn't even exist in the money supply... The money supply MUST ARTIFICALLY grow but not nearly at the same rate..
The gold standard would do absoutely nothing here!!!!
Ca'Pache'...?
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word. i think that 99% of Americans have no idea that the interest they are paying on loans is on money that doesn't exist. banks are making money on money that isn't there. it is fukkin a shell game. someday this house of cards is going to collapse, again, but for real this time.Comment