Why Its Pointless To Argue With Global Warming Believers 2040
ZnU
It kept the tax and spend bureaucrats in check. Now they can just print up more money, causing inflation. It makes sense. In the past, if you'll look back to the time around Lincoln, our money was debt free. Now it is not debt free. For every dollar created, which done thru the federal reserve system, we are taxed for those new dollars. Another point, is that when you loan out $50 in gold and charge high interest, where do you get the money for the interest? They have to wait till the gold supply expands, thus keeping the system stable. Today there is no gold in Ft. Knox. They just print money. One fed even said that they'd print money and push it out of planes if they have to. Sounds a bit desperate to me.
But that was the agreement between the US and OPEC. The markets just make it look that way. On the otherhand, the Saudis are swimming in oil, figuratively.
And that the government backs their own people, we do not.
The gold standard is a monetary system in which the standard economic unit of account is a fixed weight of gold.
"Under the gold standard, currency issuers guarantee to redeem notes in that amount of gold. Governments that employ such a fixed unit of account, and which will redeem their notes to other governments in gold, share a fixed currency relationship.
Supporters of the gold standard system claim it is more resistant to credit and debt expansion. Unlike a fiat currency, the money backed by gold cannot be created arbitrarily by government action. This restraint prevents the artificial inflation by the devaluation of currency. This is supposed to remove "currency uncertainty", keep the credit of the issuing monetary authority sound, and encourage lending. Nevertheless, countries under the gold standard underwent debt crises and depressions throughout the history of its use.
The gold standard is no longer used in any nation, having been replaced completely by fiat currency. It is still in private use by private insbreastutions in the supply of digital gold currency, which use gold grams as money."
But they *don't* do that. They borrow money from the private sector or from foreign governments. Which they could also do with...
Not that wikpedia is the last vestige of credibility.
snip From someone else. You're basically trying to say it's impossible to lend money at interest with gold...
These debt crises were caused by banks that use debt incurred money. They didn't exist for debt free money, which was one of Lincolns cornerstones to a free economy.
But it isn't a bad idea to live within ones means either. I do and have no debt.
It keeps corruption in check, which is better than it happens today. Our national debt is increasing everyday due to the excesses of gov. spending.
-- Where are we going? And why am I in this handbasket?