Brute 23":1csovdqw said:They need to let the interest rates rise at a controlled rate or get more strict on the terms. The lending in our country is out of control and needs to be reined in.
People need to learn "credit" is not money and does not equal security.
Brute 23":18z8zzj9 said:The problem now is they have made so many people dependent on it that they would literally have to slowly wean people off like drug addicts.
Brute 23":mdu43dvn said:The problem now is they have made so many people dependent on it that they would literally have to slowly wean people off like drug addicts.
hurleyjd":6yjh9pgv said:There has been a lot of campaigning by various groups wanting the USA to go back to the gold standard. What would that cost to do this in the world we are in now. Is there enough gold in the world to satisfy commerce as we know it.
hurleyjd":222k6e14 said:There has been a lot of campaigning by various groups wanting the USA to go back to the gold standard. What would that cost to do this in the world we are in now. Is there enough gold in the world to satisfy commerce as we know it.
Bright Raven":1mybeii2 said:hurleyjd":1mybeii2 said:There has been a lot of campaigning by various groups wanting the USA to go back to the gold standard. What would that cost to do this in the world we are in now. Is there enough gold in the world to satisfy commerce as we know it.
I am guessing with the size of our economy, that it would be impossible to back each dollar with gold, silver, etc. Furthermore, would we want to? What if foreign governments who hold billions in US debt ask for repayment/interest in gold?
greybeard":1pmuer1q said:Bright Raven":1pmuer1q said:hurleyjd":1pmuer1q said:There has been a lot of campaigning by various groups wanting the USA to go back to the gold standard. What would that cost to do this in the world we are in now. Is there enough gold in the world to satisfy commerce as we know it.
I am guessing with the size of our economy, that it would be impossible to back each dollar with gold, silver, etc. Furthermore, would we want to? What if foreign governments who hold billions in US debt ask for repayment/interest in gold?
They 'could' back each dollar in accounts and circulation with gold, but the value of gold would have to rise to over $10,000/ounce first. Last I read the US Govt in total (not just federal reserve) has only about 261 million ounces of gold in various forms in it's vaults.
Not all of it is part of the Federal Reserve. Some belongs to the Treas Dept. Some is 'working gold' some is 'deep storage' at Ft Knox Ky, West Point NY, & Denver Colo.
greybeard":272axwc4 said:Bright Raven":272axwc4 said:hurleyjd":272axwc4 said:There has been a lot of campaigning by various groups wanting the USA to go back to the gold standard. What would that cost to do this in the world we are in now. Is there enough gold in the world to satisfy commerce as we know it.
I am guessing with the size of our economy, that it would be impossible to back each dollar with gold, silver, etc. Furthermore, would we want to? What if foreign governments who hold billions in US debt ask for repayment/interest in gold?
They 'could' back each dollar in accounts and circulation with gold, but the value of gold would have to rise to over $10,000/ounce first. Last I read the US Govt in total (not just federal reserve) has only about 261 million ounces of gold in various forms in it's vaults.
Not all of it is part of the Federal Reserve. Some belongs to the Treas Dept. Some is 'working gold' some is 'deep storage' at Ft Knox Ky, West Point NY, & Denver Colo.
Bright Raven":3vmtenxf said:greybeard":3vmtenxf said:Bright Raven":3vmtenxf said:I am guessing with the size of our economy, that it would be impossible to back each dollar with gold, silver, etc. Furthermore, would we want to? What if foreign governments who hold billions in US debt ask for repayment/interest in gold?
They 'could' back each dollar in accounts and circulation with gold, but the value of gold would have to rise to over $10,000/ounce first. Last I read the US Govt in total (not just federal reserve) has only about 261 million ounces of gold in various forms in it's vaults.
Not all of it is part of the Federal Reserve. Some belongs to the Treas Dept. Some is 'working gold' some is 'deep storage' at Ft Knox Ky, West Point NY, & Denver Colo.
Thanks for putting some flesh on the prospects of going back to a gold standard and making US currency exchangeable for gold. There are lots of reasons - unfavorable for the US - not to return to a gold standard.
Bright Raven":1yqb4j44 said:The US dollar is now "fiat money". In other words only PAPER. It has no intrinsic value other that it is recognized by law as the US official currency.
As the world's largest debtor nation, the US currently holds a National Debt of $21 trillion.
I would rather hold a debt of that size in paper than I would in a currency redeemable in a precious metal.
Fiat money is a currency without intrinsic value that has been established as money, often by government regulation. Fiat money does not have use value, and has value only because a government maintains its value...
Why inflation is "good" for repaying the national debt:
https://www.economicshelp.org/blog/3015 ... -pay-debt/
bball":fvndw7m0 said:Bright Raven":fvndw7m0 said:The US dollar is now "fiat money". In other words only PAPER. It has no intrinsic value other that it is recognized by law as the US official currency.
As the world's largest debtor nation, the US currently holds a National Debt of $21 trillion.
I would rather hold a debt of that size in paper than I would in a currency redeemable in a precious metal.
Fiat money is a currency without intrinsic value that has been established as money, often by government regulation. Fiat money does not have use value, and has value only because a government maintains its value...
Why inflation is "good" for repaying the national debt:
https://www.economicshelp.org/blog/3015 ... -pay-debt/
What's interesting, is that our retirement money (social security trust fund) holds claim to the lions share of that 21 trillion. It's a giant shell game.
Fiat money; a promise from a financially irresponsible govt that they will back the value printed on that paper. Should the USD cease to be the world trade standard, hard times will begin overnight in this land of plenty.