Posted on 05/27/2010 6:15:40 AM PDT by throwback
The euro is beset with fiscal calamities that threaten its downfall, and markets in the U.S. are roiled by uncertainty over the government's financial regulatory legislation. But don't worry. Treasury Secretary Timothy Geithner meets with European finance officials today to discuss the economic situation. According to a Treasury Department statement, they will focus on "measures being taken to restore global confidence and financial stability." So everything is under control.
Right.
What government policy makers in the U.S. and Europe fail to realize is that far from being seen as capable of delivering economic salvation, they are increasingly perceived as primary contributors to global financial ruin. Whether it's the fiscal recklessness of spendthrift politicians or the refusal of government officials to acknowledge failings—distorting mortgage markets through Fannie Mae and Freddie Mac, skewing assessments of credit risk through loose monetary policy—the influence of government over the real economy is proving disastrous.
(Excerpt) Read more at online.wsj.com ...
Funny. Coming from the WSJ.
Geithner to the rescue.........
NOT!!!!!!!!
Could someone answer these questions for me.
1. Why isn’t our money backed by gold?
2. Why isn’t it freely convertible to silver or gold at the US Treasury?
3. Can we return to the gold standard?
Remember “As sound as the dollar” and “an Iron man”. Where are the snows of yesteryear?
The problem with gold is that it is practically impossible to trade for goods and get full value because no one is sure of the value. You have to exchange it for cash to spend it.
If we ever hit a situation where the paper currency had collapsed, pricing in gold would develop pretty quickly. If we were ever to return to a gold standard (fat chance), the government would fix the value of a dollar based on gold which would solve the pricing problem, too.
You're correct about trying to use it as currency now.
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