Essential Economics for Politicians

[Bruddah IZ]

I'm not arguing one way or another, I don't pretend to know what is the best way to run our multi-trillion dollar economy. I'm assuming the Gold standard was dropped for good reason...

It was dropped for good reason if you are a Central banker. If you are not a Central banker, dropping the Gold standard is not so good.

 

[Bruddah IZ]

I'm not arguing one way or another, I don't pretend to know what is the best way to run our multi-trillion dollar economy. I'm assuming the Gold standard was dropped for good reason...

Why would you assume that "the Gold Standard was dropped for good reason" if you aren't pretending to know what is the best way to run our multi-trillion dollar economy?

 

[Bruddah IZ]

Not enough gold, and gold too good an industrial process element to be kept locked in a vault.

Not enough Gold for what? At what price would Gold become too valuable to sit in a vault?

 

[Wez]

Why would you assume that "the Gold Standard was dropped for good reason" if you aren't pretending to know what is the best way to run our multi-trillion dollar economy?

Do you read your responses, they make no sense?

You are taking the stance you know what is the best way for us to handle banking and currencies. I'm admitting that is a topic above my pay grade.

You imply what we are doing is way wrong and we are headed for an eventual meltdown. Of course you "could be" right, but you are already admitting to dismissing entirely all arguments for getting off a gold standard, so I don't feel you are making a reasonable case.

 

[Bruddah IZ]

Do you read your responses, they make no sense?

You are taking the stance you know what is the best way for us to handle banking and currencies. I'm admitting that is a topic above my pay grade.

You imply what we are doing is way wrong and we are headed for an eventual meltdown. Of course you "could be" right, but you are already admitting to dismissing entirely all arguments for getting off a gold standard, so I don't feel you are making a reasonable case.

I did read my response. You typed that you assumed the Gold Standard was abandoned for good reason. What did you base your good assumptions on? I googled "problems with the gold standard" and read the top ten problems. Paper money has no value in and of itself. Conversely, even Espola realizes that Gold is "too good an industrial process element..." Would you consider his statement a reasonable case for arguing the merits of the gold standard?

 

[Sheriff Joe]

Do you read your responses, they make no sense?

You are taking the stance you know what is the best way for us to handle banking and currencies. I'm admitting that is a topic above my pay grade.

You imply what we are doing is way wrong and we are headed for an eventual meltdown. Of course you "could be" right, but you are already admitting to dismissing entirely all arguments for getting off a gold standard, so I don't feel you are making a reasonable case.

Trying to sound smart isn't working, Wezdumb.
The street lights are on, get to stepping little guy.

 

[espola]

I did read my response. You typed that you assumed the Gold Standard was abandoned for good reason. What did you base your good assumptions on? I googled "problems with the gold standard" and read the top ten problems. Paper money has no value in and of itself. Conversely, even Espola realizes that Gold is "too good an industrial process element..." Would you consider his statement a reasonable case for arguing the merits of the gold standard?

No.

 

[Andy Dukes]

No.

Maybe we should be on the lithium standard, or the heroin standard.

 

[espola]

Maybe we should be on the lithium standard, or the heroin standard.

The most valuable commodity traded in dollars is petroleum, so we are on a carbon standard.

 

[Bruddah IZ]

No.

You're wrong.

 

[Bruddah IZ]

Wez,
do you agree with the following?:

Number 10: There Is Not Enough Gold (or Silver) In the World to Serve as Money

Let’s begin with the obvious. We know that central banks the world over have printed money at exponentially growing rates for years. There is now so much paper and electronic money floating around the world that gold (or silver) cannot possibly be expected to keep up. You can’t print gold, after all, you need to find it, dig it out of the ground, refine it, etc., a hugely expensive and time-consuming process which practically ensures a stable rather than exponentially growing supply of the stuff.

Of course, we know that an exponentially growing supply of money is a good thing. How else can an economy hope to grow, especially one bearing in an exponentially rising debt burden! We need all that new money to pay all that new interest, don’t we? And don’t forget, most things keep getting more expensive, like food and fuel. Don’t we need more money to pay for all that too? What about government entitlements that keep growing in size? If we didn’t have a constant flow of new money, how on earth would we pay for all of that? It is essential that we keep the printing presses rolling.

 

[espola]

Anyone who wants to return to gold-backed economy may purchase a gold contract from a commodity dealer. The dealer will send the buyer the gold, or, as an option, store the gold securely and issue the buyer a certificate of ownership. The buyer can then search for another economic re-enactor willing to trade goods in exchange for the gold certificate, or for a contract declaring a partial interest in the certificate. The commodity dealer will send to the contract buyer, or his designated agent, the gold in question, on demand. For all practical purposes, this parallels transactions done with gold certificates before gold was confiscated in the 30's, except that improvements in technology allow much of the paperwork to be done electronically, and deliveries can be accomplished overnight.

So what are you waiting for?

 

[Andy Dukes]

The most valuable commodity traded in dollars is petroleum, so we are on a carbon standard.

I would say it was hope and prayers. Why would any nation, unless it is like the Saudi's and oil, want to tie it's money to a single commodity? I ran across this article today about the top industries based on GDP for each state. Notice how few economies are based on an element.

http://247wallst.com/special-report/2016/09/23/largest-industry-in-each-state-3/2/

 

[Bruddah IZ]

Anyone who wants to return to gold-backed economy may purchase a gold contract from a commodity dealer. The dealer will send the buyer the gold, or, as an option, store the gold securely and issue the buyer a certificate of ownership. The buyer can then search for another economic re-enactor willing to trade goods in exchange for the gold certificate, or for a contract declaring a partial interest in the certificate. The commodity dealer will send to the contract buyer, or his designated agent, the gold in question, on demand. For all practical purposes, this parallels transactions done with gold certificates before gold was confiscated in the 30's, except that improvements in technology allow much of the paperwork to be done electronically, and deliveries can be accomplished overnight.

So what are you waiting for?

Who said I was waiting?

 

[Bruddah IZ]

I would say it was hope and prayers. Why would any nation, unless it is like the Saudi's and oil, want to tie it's money to a single commodity?

You mean because it is better to tie your money to nothing?

I ran across this article today about the top industries based on GDP for each state. Notice how few economies are based on an element.
http://247wallst.com/special-report/2016/09/23/largest-industry-in-each-state-3/2/

Notice how few if any of those economies print their own currency.

 

[Wez]

Wez,
do you agree with the following?:

That was written as a parody BIZ, nice try.

 

[Wez]

Here's a brief overview that was the 1st hit when I Googled "problems with a gold standard":

http://www.theatlantic.com/business...orlds-worst-economic-idea-in-2-charts/261552/

...you can find plenty more academic studies if you keep going down the list.

 

[Bruddah IZ]

That was written as a parody BIZ, nice try.

That's perfect, fiat money and fractional reserve banking as parody. That's the whole point.

 

[Bruddah IZ]

Here's a brief overview that was the 1st hit when I Googled "problems with a gold standard":

http://www.theatlantic.com/business...orlds-worst-economic-idea-in-2-charts/261552/

...you can find plenty more academic studies if you keep going down the list.

Ah yes, the CPI basket that never contains any of the goods or services that cause financial crisis.

 

[Wez]

That's perfect, fiat money and fractional reserve banking as parody. That's the whole point.

It's your whole point, this we know...