Gold Standard ?

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toad
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Gold Standard ?

Post by toad »

Well apparently there is no country on the gold standard. It is all countries with something like the Federal Reserve constantly feeding the inflation monster . How ever , while I'm aware that there are wealthy individuals buying gold , the price of gold hovering at about 1200 dollars per troy ounce .
So I am wondering if it is only individuals who are supporting the price of gold . Could there be companies and NGO's supporting this price waiting to sodomize the Federal Reserve ?
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blackeagle603
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Re: Gold Standard ?

Post by blackeagle603 »

There's a currency war on. But then, there's always a currency war on -- sometimes just with a slowdown for weather.

I wonder how much the move to crypto is soaking up dollars that otherwise would go to precious metals
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HTRN
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Re: Gold Standard ?

Post by HTRN »

toad wrote: Mon Aug 09, 2021 10:23 am Well apparently there is no country on the gold standard.
Of course not. Fiat currency allows them to manage inflation and economic growth. And before you go on about "printing money" - the Romans were essentially doing that 2000 years ago, by debasing silver coinage over the centuries. One of the ways they used to be able to tell how old a coin is, was measuring the silver content.
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Vonz90
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Re: Gold Standard ?

Post by Vonz90 »

HTRN wrote: Tue Aug 10, 2021 7:03 am
toad wrote: Mon Aug 09, 2021 10:23 am Well apparently there is no country on the gold standard.
Of course not. Fiat currency allows them to manage inflation and economic growth. And before you go on about "printing money" - the Romans were essentially doing that 2000 years ago, by debasing silver coinage over the centuries. One of the ways they used to be able to tell how old a coin is, was measuring the silver content.
#1 on all of that but also mention the periodic bouts of deflation and arbitrage when the official and real price of gold diverge.
toad
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Re: Gold Standard ?

Post by toad »

Booze , Firearms , and Foods good for long term storage ?
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Re: Gold Standard ?

Post by Greg »

blackeagle603 wrote: Mon Aug 09, 2021 12:35 pm There's a currency war on. But then, there's always a currency war on -- sometimes just with a slowdown for weather.

I wonder how much the move to crypto is soaking up dollars that otherwise would go to precious metals
An enormous amount. There's no other explanation for the way crypto behaves.
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HTRN
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Re: Gold Standard ?

Post by HTRN »

The funny thing is, Crypto is basically useless for it's original intended function : an alternative currency. Because it's far to unstable to be used as such.
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BDK
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Re: Gold Standard ?

Post by BDK »

The Gold standard is inherently broken - like all commodities, just about, it inherently gets cheaper, at a rate faster than inflation.

The best currency, really, is a tightly controlled fiat currency, which, TMK, is what cryptos are attempting to be.
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Vonz90
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Re: Gold Standard ?

Post by Vonz90 »

BDK wrote: Fri Aug 20, 2021 12:08 am The Gold standard is inherently broken - like all commodities, just about, it inherently gets cheaper, at a rate faster than inflation.

The best currency, really, is a tightly controlled fiat currency, which, TMK, is what cryptos are attempting to be.
True long term, short term can be worse with both up and down fluctuations.

The problem with the Fed as it stand now is they are mandated to keep an inflation target and a growth target and those can be contradictory.
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HTRN
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Re: Gold Standard ?

Post by HTRN »

BDK wrote: Fri Aug 20, 2021 12:08 am The best currency, really, is a tightly controlled fiat currency, which, TMK, is what cryptos are attempting to be.
Yes, but like I said, it's too unstable - Bitcoin was worth $327usd in Nov 15, $11 k usd + in Nov 20, and over 63k apr of this year.

That's hardly stable, and stability. Is one of the prime requirement of a useful currency.

I think a better idea that instead of fiat or commodity backed currency, perhaps defining a unit of currency to be worth exactly one hour of the average labor rate of the country? I got the idea from an old stainless steel rat novel.
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