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You need to turn off the Limbaugh and Levin
Many Austrians as well
Gold is just another asset class. I don't understand all the emotion on both sides- there is a significant anti gold crowd(there is no anti sugar or coton crowd) and a gold bug crowd that thinks all would be well if the government were on a gold standard.
Gold has its place as a commodity hard asset ( as does oil, real estate, silver, uranium, etc) but it doesn't deserve the scorn or adoration that it receives.
I don't understand all the emotion on both sides
Having gold equates to survival, people get emotional about survival.
all would be well if the government were on a gold standard.
It prevents the unavoidable failure of fiat money. How is that not true?
all would be well if the government were on a gold standard.
It prevents the unavoidable failure of fiat money. How is that not true?
If government is issuing dollars based on a gold standard they could still easily abuse it by
-overstating the amount of gold they claim to have
-leasing it without any one knowing
-lowering the ratio of the gold to dollar
There are all kinds of tricks that can be played with a gold standard
The only gold standard that would "work" would be if gold were universally used as money -it's not. It is an asset only.
A gold standard also removes from the population a commodity that could otherwise be used for jewelry, industry etc as governments would have to hoard it and vault it, which would make whatever the government didn't hoard much more expensive
Unless retirees are forced to buy bonds they won't buy them at no the no yield rate they are at today.
Higher rates would be a disaster for the US government as the deficit would explode as borrowing costs would rise.
Higher rates would kill growth, as there is still too much leverage. Killing growth would send the rates back down (as we see happening now).
This negative feedback ensures rates cannot jump up.
If the SDR thing becomes a possibility
You guys are soooo desperate to find something that could go wrong.
I said it above: Countries accumulating reserves are doing so to support the dollar relative to their currencies.
Buying SDR would just send this thing up until no one wants it. It would not lower a currency relative to the dollar. In addition the IMF is more or less controlled by the US. They will not undermine the reserve status of the dollar.
In addition the IMF is more or less controlled by the US.
That is what is important to remember- any IMF move would be dollar positive-
Ok, so what is the better alternative?
elimination of legal tender laws and let each country and individual use what they like-inevitably the best currencies will be the most used, not the ones that are forced upon us
Oh, but it does. gold is the answer to everything. I heard it on the radio.
You need to turn off the Limbaugh and Levin
I refuse. everyone knows that they tell nuttin' but the truth and the rest is made by the liberal media.
elimination of legal tender laws and let each country and individual use what they like-inevitably the best currencies will be the most used, not the ones that are forced upon us
IOW gold and silver
elimination of legal tender laws and let each country and individual use what they like-inevitably the best currencies will be the most used, not the ones that are forced upon us
IOW gold and silver
My guess would be people would chose those, digitized version, crytpos and government ones deemed to have sound fiscal policies
This is a great article explaining the current mercantilist situation we have today. Also read the comments below the article. Pettis really knows this stuff
cold.
http://globaleconomicanalysis.blogspot.com/2011/07/hugo-salinas-price-and-michael-pettis.html
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The United States is able to incur massive deficits funded in part by foreign purchases of U.S. debt and more recently and increasingly through the Federal Reserve’s (the Fed) purchases of T Bonds as part of their multi-year/multi trillion dollar quantitative easing (QE) program whereby they print dollars out of thin air to buy them.
As a result of QE more than a few nations, notably Iran, Russia, China and Brazil have become increasingly concerned that the value of their T Bond holdings are being diluted by the Fed’s massive money printing campaign and have made efforts to reduce their need to hold dollars for settling their trade accounts. Last October, China called for the world to “de-Americanize†because “the destinies of others are in the hands of a hypocritical nation that have to be terminatedâ€.
Such calls to “de-dollarize†have increased and been joined by Russia as the west battles Russia’s designs on Crimea and Ukraine with economic sanctions. Most recently, Russia and China signed a 30 year gas deal that supposedly does not involve dollars for payment.
What happens when the Fed and China stop buying and Belgium can't cover the shortfall?
Here is an analysis and list of the largest foreign holders of U.S. Treasuries as of March 2014 and of the top gold holding countries:
http://smaulgld.com/foreign-holdings-u-s-treasuries/
#investing