Posted on 07/08/2023 2:50:53 PM PDT by delta7
THHHHAAAAAATTTT's why.
Not because it was shiny and attractive, never tarnished, malleable, rare, and could be pounded into a sheet so thin you could use it to plate anything.
Rocks are (by your assumed definition) completely useless, yet they never took off in value.
Wow.
Just....
Wow.
Remember lots and lots and lots of things have been money over the ages. Gold, beads, tulips. And now 1s and 0s Actually rocks, certain types of rocks, most definitely have been money. You do know what diamonds, emeralds, and rubies are right?
You do realize that the vast majority of the money the fed creates these days never goes through a printing press right? Physical money doesn’t matter. It’s a small part of the economy. People still like to say they’re printing money when the government floods money into the economy, but they aren’t ACTUALLY printing money. And since only printed money was ever backed by gold. We again see why people addicted to the concept of backing currency with gold just don’t understand.
The idea that a computer entry can be made to create “money” with no security is outrageous.
It provides the perfect opportunity for unscrupulous politicians to create debt which will deprive the citizens of their wealth and freedom.
The corruption related to the war in Ukraine is an example.
Printed money has the statementon it that it is a Federal Reserve Note. It has no payment date so it is an “on demand” note.
To be paid off with what? Gold or silver coins was the intention of our founders.
Making computer entries with out the gold and silver is criminal. What our government is doing is the equivalent of your going to the auto store and filling out a credit report that says you have liquid assets amounting to $3,000,000, real estate at another five and little or no debt...when the facts are that you have none of the above and what little you have is already mortgaged or used as security on loans.
They put us in jail for that.The Federal Reserve is con game that can not last forever.
Well, too bad. Cause it’s been that way for a long long time. And nobody is going back. Unscrupulous politicians have ALWAYS been able to create debt, or money, whenever they want. Part of the power of being a king.
The words on printed money mean NOTHING. Money, in any form, has always been powered by one thing and one thing only: people’s willingness to take it in payment for goods and services. CONFIDENCE is the only thing that has ever backed a currency. The whole reason gold backed currency was invented is because precious metal coins had been currency through so much of the world for so long people had forgotten that it wasn’t actually worth anything by itself, it only had value because people were willing to take it in payment. By “backing” the printed currency they convinced people paper money was a stand-in for the coins. That was a LIE. Paper money was never a stand-in for anything. But by telling that lie they CONVINCED people to BELIEVE in the paper currency. Thus giving it the confidence money needs to be real.
And again, once fractional banking was invented, with all of the money stand-ins that it requires to even exist, the whole concept of backed currency became a complete fiction. You put that dollar in the bank and they lend out 90 cents of it. But they usually don’t lend out 90 physical cents. It’s part of a check (or cheque in the old days, really once you look into the history or it all you’ll realize how long people have believed complete BS about money). And that check goes to somebody and eventually lands in a bank, and they lend 81 cents of that, etc etc. The general rule of thumb for fractional backing is that the denominator of the fraction has to keep “on hand” (in most countries it’s 1/10, so 10) is how many dollars that saved dollar turns into.
And that’s where things get very interesting. So you put a dollar in the bank and it turns into 10 dollars in the economy. In a backed currency which of those 10 dollars is backed? Cause you can’t back all 10, there’s whole math problem there, not to mention the fact that technically they don’t even really exist. So which one is it? Well it’s obvious really: the physical one. The one you put in the bank. So that dollar you so strongly believe in because you think backing currency matters isn’t even yours. If somehow the backing of the currency comes to matter THE BANK has your dollar, and gets the gold.
And that is why gold backed is stupid. And people who want it just don’t understand money. It was ALWAYS a complete LIE. All that happened when we dumped it is we stopped lying. And went with what money has always been about: confidence.
I like your little example there about the fake assets. Cause here’s an interesting thing about that, yes indeed it is very much illegal BUT if you manage to pay off the loan nobody gives a damn. And a lot of the biggest most important loans that happen are built on those kind of fictions. It’s a game of chicken companies play, use overstated assets to buy something that will generate revenue, use the revenue to pay off the loan, and hopefully doesn’t come tumbling down. Of course sometimes they fail and we get Enron. But most of the time the loan gets paid and nobody cares.
You make my point.
There are no restrictions on how much money is created with the stroke of some computer key.
The requirement that a government hold an appropriate amount of gold would prevent some of the craziness.
I believe that referring to paper money is a mistake.
We should refer to it as vapor money.
I appreciate your reminding me of how banks loan money, the same money, multiple times. I have known that for a long time but had forgot.
We will never agree today, or even this month, but if you are less than 70 years old the chance is very good that you will live long enough to find out that something must be done to get federal spending under control.
Biden has already cost me more than $400,000 but I still have enough to make it if he can be restrained for the remainder of his term.
What you’re failing to understand is I’m not telling you how things should work. I’m telling you things HAVE ALWAYS WORKED.
ALL money is a lie. It only has value because people say it does. Gold money is a lie. It only has value because people say it does (and honestly in this modern world it doesn’t, try buying groceries with gold). Backing paper money with gold is TWO lies, the money isn’t actually backed, and neither the paper money or the gold have actual value other than what people say it does.
ALL money is vapor money.
I might have reminded you, but you’re still not understanding what it means. Backed money or not the economy is ALWAYS propped up on make believe money, that doesn’t even physically exist, and can’t be backed, plus of course the backing means nothing.
Getting federal spending under control has NOTHING to do with backing money or not. Federal spending was out of control when we had backed currency. Partly because they never spent real currency. Even before they were spending debt they were using the equivalent to checks. We’ll never restrain Biden. We’ll never restrain ANY politician. Every president in your life time, even the ones you voted for, even the ones you think were awesome, spent like drunken sailors. That has nothing to do with how we define our money and everything we keep empowering to, and even demanding, government do. When government gets to do whatever it wants it’s gonna spend a lot of money. And what that money is made of has nothing to do with it.
You’re in the “I have a hammer so everything must be a nail” land. Government spending ain’t a nail, a hammer ain’t doing anything about it.
The new QFS system will require asset back currency. It can be gold, silver, platinum, diamonds, oil etc. The US will be gold backed. The BRICs system is the start of the new global asset backed system. I predict France and Germany will ask to join the near future.
Nobody is signing up for any of that. They all understand how money actually works. They know “backing” money is a hollow gesture. They ain’t gonna do it. The US will NEVER be gold backed again, France and Germany aren’t “joining” a movement that doesn’t even exist. And backing is a lie anyway. So really, stop asking your government to lie to you even more than they already do.
You my friend are in for a terrible shock. 😏
Nope. People have been insisting we were going back to the gold standard before we even finished getting off of it. So far people making your prediction are 0fer all tries. So I know for an absolute fact that it ain’t gonna happen. And again, since the whole backed currency thing is a complete lie anyway, my advice still stands:
stop wanting the government to lie to you even more.
The FReeper at 51 was predicting that the “QFS” was coming in a few weeks in the Spring of 2021.
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