National suicide for dummies

[Vern Humphrey]

Yes, but I asked first!
Money is anything that the other person will accept in trade. First one has to set a value of "something" for sale, barter and then set a value for the other offering. The rarer the first commodity, the more of the second. Now go beyond that state to commercial ventures, taxes, capital gain/losses then one is in a new set of rules. On the gold standard one had a set of the first, off the gold standard then the 2nd offering could float to a value set by the first.
Currently U.S. currency is set by the "Full faith and credit of the United States" nothing more. We have "gold" in Fort Knox, a promise of a metal. The value fluctuates by what we hold and what the gold can be traded for in our dollars against other currency. Now what happens if that other country declines our paper and demands an equal amount of gold for said paper? We transfer to that country to hold our credit line, don't/can't and now our paper is worthless on the international trading floor.
Can this happen at home?
Sam

Right on -- our Fiat Currency is based on what the government says it is worth and what people believe. When people don't believe what the government says, we have runaway inflation (can you say, "Jimmy Carter?")

Absent gold and silver, the measure of worth has to be the goods and services produced -- these things have REAL value, not a fiat value, and that real value finally determines the worth of the government's paper currency. Now encouraging producers to produce more is like encouraging gold miners to produce more -- you get more REAL wealth to share among the people.

[S.A. Boggs]

Actually I asked the first question in post #7 so I'll ask it again: what happens if the economy wants to grow faster than the gold-backed money supply will allow? Until you understand the answer to this question, nothing else will make any sense to you.

Again the economy can grow at any rate it wants to provided there is agreement on realistic value of price. I have a ten dollar gold piece, you have a suit of custom tailored clothes. You are willing to trade that ten dollar gold piece for your suit. Flash forward 100 years, the ten dollar gold piece will still buy a decent suit of clothes. Now I have ten United States dollars that is equivalent to the 10 dollar gold piece and the paper money buy's your suit of clothes. Now flash forward 100 years, can I still buy the same suit of clothes for $10.00 in United States Currency or do you still want the gold piece ?
Sam

[Vern Humphrey]

Again the economy can grow at any rate it wants to provided there is agreement on realistic value of price. I have a ten dollar gold piece, you have a suit of custom tailored clothes. You are willing to trade that ten dollar gold piece for your suit. Flash forward 100 years, the ten dollar gold piece will still buy a decent suit of clothes. Now I have ten United States dollars that is equivalent to the 10 dollar gold piece and the paper money buy's your suit of clothes. Now flash forward 100 years, can I still buy the same suit of clothes for $10.00 in United States Currency or do you still want the gold piece ?
Sam

If he could understand economics, he wouldn't be a leftist.

[S.A. Boggs]

If he could understand economics, he wouldn't be a leftist.

Back in 2008 I worked with a Democratic Leftist support who had this brilliant idea and what an idea. Why not just give Obama the authority to order the government printing office to print all the money America needed. Her reasoning was that taxes won't be raised to get money, Obama's idea to get prosperity back to America can be implemented. The problem she said was that Republicans must be barred from voting as they are against Obama and the great things he wants for America.
She was the type of person who was always right and would shout one down if opposed. Little has changed on their side since then. One thing I am pleased to see is that Pelosi has another problem to juggle. Does she bring the impeachment to the floor and does she allow the 4 radicals to further enhance President Trumps election in 2020?
Sam

[Sandpebble]

Back in 2008 I worked with a Democratic Leftist support who had this brilliant idea and what an idea. Why not just give Obama the authority to order the government printing office to print all the money America needed. Her reasoning was that taxes won't be raised to get money, Obama's idea to get prosperity back to America can be implemented. The problem she said was that Republicans must be barred from voting as they are against Obama and the great things he wants for America.

sure.... I believe this story....

[S.A. Boggs]

Back in 2008 I worked with a Democratic Leftist support who had this brilliant idea and what an idea. Why not just give Obama the authority to order the government printing office to print all the money America needed. Her reasoning was that taxes won't be raised to get money, Obama's idea to get prosperity back to America can be implemented. The problem she said was that Republicans must be barred from voting as they are against Obama and the great things he wants for America.

sure.... I believe this story....

Why not? People "believe" that you own a company and hire workers...got several bridges over the Ohio will sell you one cheap!
Sam