Gold is money.

[resident_evil]

If you had 24 oz of gold in 1940 that would have been $800 (at $33.85/oz). Which was the average price of a car.

Today those same 24 oz of gold (at $1159/oz, which is a recent low) is $27,816. Which will still get you a nice car.

Same goes for the price of a home or any number of things. Gold is money.

If you don't have gold, you're foolish.

Social Security is a Ponzi scheme. There is no SS trust fund. It is an IOU from the government. If your SS money was in the market you'd have property.

 

[resident_evil]

 

[Boltlady]

If you had 24 oz of gold in 1940 that would have been $800 (at $33.85/oz). Which was the average price of a car.

Today those same 24 oz of gold (at $1159/oz, which is a recent low) is $27,816. Which will still get you a nice car.

Same goes for the price of a home or any number of things. Gold is money.

If you don't have gold, you're foolish.

Social Security is a Ponzi scheme. There is no SS trust fund. It is an IOU from the government. If your SS money was in the market you'd have property.

SS wasn't a Ponzi scheme for many years. It's our Keynesian system that is. SS was a trust fund until Clinton traded the money for IOUs. NOW it's a Ponzi scheme because the money is gone and we can't replace it.

We do need to go back to a gold based economy. Other countries are positioning themselves to do that very thing and we're going to get left in the dust.

 

[resident_evil]

SS wasn't a Ponzi scheme for many years. It's our Keynesian system that is. SS was a trust fund until Clinton traded the money for IOUs. NOW it's a Ponzi scheme because the money is gone and we can't replace it.

We do need to go back to a gold based economy. Other countries are positioning themselves to do that very thing and we're going to get left in the dust.

I think FIAT money has been an economic boon to civilization in many ways. It is just that market discipline has never forced the government to behave. I don't think the valuation of all the gold mined in the world adds up to our GDP in terms of dollars and let alone the World GDP.

I put this up to advise people to treat gold like bonds. If people invested in gold rather than Treasuries you'd get much different behavior from the U.S. government concerning fiat money.

 

[Boltlady]

I think FIAT money has been an economic boon to civilization in many ways. It is just that market discipline has never forced the government to behave. I don't think the valuation of all the gold mined in the world adds up to our GDP in terms of dollars and let alone the World GDP.

I put this up to advise people to treat gold like bonds. If people invested in gold rather than Treasuries you'd get much different behavior from the U.S. government concerning fiat money.

The problem is that existing gold is used as derivatives and keeps getting sold over and over beyond the physical amount.

I've said in other threads that so many things would be workable, including the fiat money, if there were enough checks and balances that were enforced. Our own constitution is an example of the need for that. Back when our built in checks and balances were enforced we had a damn fine gov't. Now that those things are simply ignored and bypassed, we have a mess.

 

[resident_evil]

The problem is that existing gold is used as derivatives and keeps getting sold over and over beyond the physical amount.

I've said in other threads that so many things would be workable, including the fiat money, if there were enough checks and balances that were enforced. Our own constitution is an example of the need for that. Back when our built in checks and balances were enforced we had a damn fine gov't. Now that those things are simply ignored and bypassed, we have a mess.

I think the Fed was a good invention but it should be open to audit. AND rates should be fixed to a public formula so that the market would know and could expect certain behavior from the Fed.

If people put their dollars in gold rather than bonds/treasuries that would discipline government. But the market is truly not as rational as people assert.

 

[Boltlady]

I think the Fed was a good invention but it should be open to audit. AND rates should be fixed to a public formula so that the market would know and could expect certain behavior from the Fed.

If people put their dollars in gold rather than bonds/treasuries that would discipline government. But the market is truly not as rational as people assert.

The fed is a lousy invention because we owe interest on all of the money it supplies. Because of that we always owe more than what is available. It's in the constitution that we could supply our own without that happening.

YES the fed needs to be audited, sooner rather than later.

 

[resident_evil]

The fed is a lousy invention because we owe interest on all of the money it supplies. Because of that we always owe more than what is available. It's in the constitution that we could supply our own without that happening.

YES the fed needs to be audited, sooner rather than later.

It is a lousy invention only because people don't buy gold as if they were bonds.

Abstracting out the Fed from government was actually pretty brilliant. It is just missing a few things. Primarily the control of Wall Street from working in the Fed and vice-versa. And of course an audit and a public fixed formula for deciding interest rates.

 

[Boltlady]

It is a lousy invention only because people don't buy gold as if they were bonds.

Abstracting out the Fed from government was actually pretty brilliant. It is just missing a few things. Primarily the control of Wall Street from working in the Fed and vice-versa. And of course an audit and a public fixed formula for deciding interest rates.

Yup, checks and balances. Without 'em everything runs wild and gets out of hand.

 

[worldlymrb]

The fed is a lousy invention because we owe interest on all of the money it supplies. Because of that we always owe more than what is available. It's in the constitution that we could supply our own without that happening.

YES the fed needs to be audited, sooner rather than later.

Sot on.

Gold is a commodity based asset.
USD is a promissory note (debt).