patrick.net

elliemae says

RayAmerica says

elliemae says

I asked him, what happens when you grow up and there’s no mom around to clean up after you? He said, “I’ll get a wife.”

Shocking statement …. SHOCKING. Sounds very much like you are raising a very sexist kid with an attitude that is dangerous to women. Are you teaching this kid that a woman’s role is to “scrub floors, cook meals and do laundry too?” Both of you should be sent to a Feminist Re-education camp at once. I find it amazing that a conservative like me has to point this out to you.

Yea, rayray, I allowed him to get away with this and hired a housekeeper for him immediately. He’s 25 now and I still pay for a housekeeper, female of course, until he can find a subservient twit of a woman with no goals. Trouble is that he continually dates women who are intelligent, vibrant self-thinkers who would never consider their only job to be cleaning up after him. Apparently he values the woman over the services that she would provide to him as a maid.
I thought we raised him better, and his father & I are very disappointed. Damn!

Wait, you only provide him with a maid? At 25 he should have concubines to satisfy all his needs. You're failing in your parental duties. Hire some concubines. What are you teaching him by letting him date such independent, intelligent, vibrant, and self-aware women? Sheesh!

simchaland says

Wait, you only provide him with a maid? At 25 he should have concubines to satisfy all his needs. You’re failing in your parental duties. Hire some concubines. What are you teaching him by letting him date such independent, intelligent, vibrant, and self-aware women? Sheesh!

In his defense, he requires her to wear a French maid's uniform with fishnet stockings and high spiked heals. In my defense, as a parent hoping to instill some values beyond shallow stereotypes, I hired a grandmother in her 50's with plenty of cellulite. His girlfriend(s) seldom feel threatened by her.
It's called a "happy medium."

So - exactly what is a "dollar"?

http://www.google.com/search?hl=en&rlz=1I7DMUS_en&defl=en&q=define:dollar&ei=kOe_S_HlGcL38AaQ8LXrCA&sa=X&oi=glossary_
definition&ct=title&ved=0CAYQkAE

"Dollar are a pop vocal duo from the UK, consisting of David Van Day and Thereza Bazar. The duo were successful in the late 1970s and 1980s.
en.wikipedia.org/wiki/Dollar_(band)"

thanks for asking. :)

Nomograph says

Honest Abe says

So - exactly what is a “dollar”?

A dollar is a denomination of the currency we use to exchange goods and services. It’s sole purpose is to enable the exchange of goods and services.
You can buy gold with a keystroke in the free market. Free markets are volatile and have risks. Are you afraid of freedom, Abe?

I'll bet he yells at you & tells you how wrong you are, followed by accusing you of being a liberal elitist snob.

And the downside to defining a dollar as a specific amount of silver (or gold) would be ???

The Wizard of Oceana says

the perils of the free market.

I would love to hear how in your Orwellian false reality the Fed and its monopoly over money and interest rates is "the free market" Please do tell.

Also since you claim a gold standard would be a government run program as opposed to this Fed monopoly on "money", please explain how defining a dollar as a specific amount of gold or silver will cause an increase in the size and scope of government. Please do tell!

In fact how would requiring gold (or gold backed currency/account) for the payment of debts be any different than requiring Federal Reserve notes for the payment of debts? Please do tell!!!
Both the gold currency and Federal Reserve notes require that the government enforce a "standard." Under gold there would be ABSOLUTELY NO CHANGE IN THE SIZE OR SCOPE OF GOVERNMENT (other than the fact that government could not have access to freely printed federal reserve notes and would be forced to limit spending to equal actual revenues rather than monetizing debt. This is a win win scenario, you know the kind of scenario the Wizard of Nomo's ideology rejects and therefore he doesn't understand).

Honest Abe says

And the downside to defining a dollar as a specific amount of silver (or gold) would be ???

The downside is that the corporations and government won't have access to unlimited supplies of "money."

In other words, the "downside" is we would actually have a free market in currency.

Nomograph says

So why not just buy gold?

Owning a private hoard of gold probably won't do you any good if/when the dollar collapses. I would prefer not to see the day it collapses and the civil unrest or worse that will likely come with it. That is why I am calling for reform now, before the crisis fully manifests.

You still have not explained how the FED and its monopoly over money and interest rates is a "free market."

AdHominem says

You still have not explained how the FED and its monopoly over money and interest rates is a “free market.”

Are you defining the market as "the printing of currency"?

Of course there isn't a free market in currency printing. If we did, then anyone could print money in their basement....

Speaking of golden (silence being it, and all), how's the sore throat Nomo?

Trade ya - got another pen to clean out, full of dung. It'll clog the sinuses and the smell will linger for a day or two. Am I selling it to ya? How's about - it'll give you a sore back, arms, legs & neck. Even my eyelashes hurt from yesterday's go-round.

You'll get a bunch of inquisitive critters who are interested in what you're doing, hang around and try to steal your gloves or anything else you put down. This includes cute little birdies that are there to pick out the oats that weren't consumed in the first place. That'll be followed by cats, who want to eat the cute little birds, and who will hiss & howl at each other as they jockey for the best position. They'll also want to eat the cute little mice who have made a home in the aforementioned dung.

That'll be watched by the dogs - who "own" the cats and therefore don't usually chase them... but don't like commotion. Goats and horses watch all this with interest, and help out as best they can. This encourages neighborhood kids to come around, none of whom want to help but bring bb guns to shoot the cute little birds and mice who are uncovered. I'm cool with their shooting mice (guns pointed downward) but not the birds. And I make them help a little anyway, but have to give them pop or they'll get whiny.

This encourages their parents to stop by and watch, hang out with a beer and give constructive criticism. I love that part. It'll become like government work - 1 actual worker, 2 whiny assistants with different agendas, multiple interferences from outside influences who believe they have some ownership in the event, and a few supervisors.

The Wizard of Nomo says

But wait. You’ve been trying to convince everyone that gold is the only substance known to man that holds it’s value.

Gold and silver will hold value over the long term (decades). But its value is meaningless in the event of an accidental or orchestrated currency collapse and the chaos or worse that follows. In the event of a total breakdown (which is likely during a Federal Reserve note currency collapse) money will be the least of your concerns. That is the situation I would prefer to avoid. I would hate to see your toilet cleaner come over and clean you out (hint they won't be after your "money"), after beating you with a pipe wrench.

The Wizard Nomo says

free markets?

You claimed that people calling for a metal backed currency are afraid of the free market. That was YOU! I am still waiting to hear how in your Orwellian false reality forcing Americans to deal in Federal Reserve notes and the Fed's monopoly over currency and interest rates in the US is a "free market." Sounds more like totalitarianism in the real world.

Nomo - You're now a wizard. Congrats. That oughtta make you feel a little better today.

Nomograph says

Are you saying that gold prices are . . . unstable?

No, actually I am saying fiat currencies are unstable.

AdHominem says

You claimed that people calling for a metal backed currency are afraid of the free market.

If I'm forced to use a shiny metal as my currency, how is that a free market?

A better question is why did Roosevelt confiscate privately held gold coins in 1933?

I never said requiring any currency is a free market, you'll just have to believe Roosevelt and the Fed that gold currency is a free market. The Fed knows:

Gold and silver are hard currency, which cannot be debased except by fraud.

Fiat currencies are by nature a fraud and unstable.

That is why the Fed hates gold and silver. Commodity money exposes the fraud of their fiat Federal Reserve notes. Gold and silver reveal the results of their activity as lender of last resort and chief counterfeiter.

Every fiat currency has and eventually will collapse when the PtB push the limits of credibility too far. Fortunately gold as money cannot fail. That is why it has been used for millennia and remains today. Why do central banks and governments want any gold anyway if it is not a true currency? Why would Roosevelt confiscate Americans gold and then devalue their dollar?

WIZARD of NOMO: I am still waiting to hear how in your Orwellian false reality forcing Americans to deal in Federal Reserve notes and the Fed’s monopoly over currency and interest rates in the US is a “free market.” Sounds more like totalitarianism in the real world.

AdHominem says

A better question is why did Roosevelt confiscate privately held gold coins in 1933?

No, I like my question better. How about you answer that one?

As soon as The Wizard answers mine.AdHominem says

The Wizard of Nomo says

But wait. You’ve been trying to convince everyone that gold is the only substance known to man that holds it’s value.

Gold and silver will hold value over the long term (decades). But its value is meaningless in the event of an accidental or orchestrated currency collapse and the chaos or worse that follows. In the event of a total breakdown (which is likely during a Federal Reserve note currency collapse) money will be the least of your concerns. That is the situation I would prefer to avoid. I would hate to see your toilet cleaner come over and clean you out (hint they won’t be after your “money”), after beating you with a pipe wrench.
The Wizard Nomo says

free markets?

You claimed that people calling for a metal backed currency are afraid of the free market. That was YOU! I am still waiting to hear how in your Orwellian false reality forcing Americans to deal in Federal Reserve notes and the Fed’s monopoly over currency and interest rates in the US is a “free market.” Sounds more like totalitarianism in the real world.

Fact: there has never been a time in all of recorded history when gold or silver has been considered worthless.

Fact: over 300 fiat currencies in history have failed and collapsed.

Precious metals have intrinsic value that, throughout history, has been recognized the world over. Fiat paper money has value only in the minds of those that are willing to accept its promissory "value."

RayAmerica says

Fact: there has never been a time in all of recorded history when gold or silver has been considered worthless

That's not true. The dinosaurs did not value gold at all.

When De Gaulle showed up at the gold window to demand payment for his U.S. dollars in 1971, Nixon responded by closing the gold window. Why? Because he feared a run in the exchange of dollars to gold from the world market, exposing the fact that the U.S. currency was only partially supported by gold. Our currency back then was similar to how fractional reserve banking operates today. Only a very small fraction of gold existed to back the dollar. Now we have zero support, only a promise and the printing press that is ready to run 24/7 to "pay" off the huge debt obligations with currency that continues to lose value. How long do you think the financiers of the world will go along with this fraud? The day of reckoning is coming for the U.S. dollar and it is going to be unimaginably ugly.

tatupu70 says

That’s not true. The dinosaurs did not value gold at all.

You really should take this show on the road and get paid for it.

RayAmerica says

Fact: there has never been a time in all of recorded history when gold or silver has been considered worthless.

Ignoring dinosaurs for now, my problem with gold is that it does actually swing wildly in buying power. I was just looking at the graph of the buying power of gold in Ron Paul's book "End The Fed" and it looks like gold varies by a factor of ten in what it can buy. I think that's mostly because gold gets bid up too high during times of uncertainty.

So while gold does not fall to zero, you can still lose your shirt if you're fully invested in gold, and it's near the high end of its historical range.

RayAmerica says

How long do you think the financiers of the world will go along with this fraud?

If the financiers of the world are in on the scheme and benefitting from it, why would they ever want it to end?

RayAmerica says

You really should take this show on the road and get paid for it.

Sorry--bad jokes aside, my question has always been what is the so called intrinsic value of gold? Why do you think gold has some innate value?? Historically, people have valued it because it's pretty and makes good jewelry and adornments. Is that how we want to decide what to use as a currency?

Vicente says

If the financiers of the world are in on the scheme and benefitting from it, why would they ever want it to end?

The financiers I'm referring to are those that expect the U.S. dollar to maintain its value due to fiscal responsibility by the federal government. We are spending at an incredible pace and the big money players of the world know it. We have only four basic options available to pay down our debt: 1) dramatically cut government spending and balance the budget, 2) dramatically raise taxes, 3) continue to borrow enormous sums from foreign sources (currently $3 + Billion per day), 4) monetize our debt via the printing press. I would argue that #1 & #2 will not happen due to the political suicide it would require by our self serving politicians. #3 is more palpable politically because most voters cannot comprehend that their government is basically broke and forced to borrow in order to function. #4 is the most likely scenario because it is the most acceptable to voters that do not have the capacity to understand inflationary economics, i.e. debasing of the currency. When Nixon closed the gold window in 1971, the government literally held its breath, not knowing how the world would react. We have abused our currency since that time and, although we are currently experiencing deflation in some sectors and inflation in others (along with high unemployment, i.e. stagflation), the day is absolutely coming when the excessive amounts of fiat money will finally push inflation into at least the double digits. When the big money players begin to unload their U.S. dollars, we will be forced to raise interest rates in order to attract investments in the dollar. With the economy already weakened while enjoying historically low interest rates, what do you think will happen when interest rates are forced higher?

tatupu70 says

Sorry–bad jokes aside, my question has always been what is the so called intrinsic value of gold? Why do you think gold has some innate value??

Gold has a history of value, whereas fiat currency has a history of eventual failure. Gold is relatively scarce due to the difficulties related to mining, making it limited in its supply. Throughout history, including antiquity, gold has always been in demand and low in supply. Whereas, the supply of fiat money can easily be expanded via the printing press. For example: printing a million dollar note takes the same effort as does printing a single dollar bill. Politicians know this, and love the flexibility this gives them in literally "buying" votes with their fiat currency purchased social programs. The voters are temporarily fooled by inflation in the early stages because they are deceived into thinking that they themselves are becoming wealthier because their assets appear to be "increasing" in value. What is actually happening is inflationary forces are diminishing the value of the dollar while seemingly increasing the value of assets related to it. The real estate bubble is a perfect example of an excessive amount of money chasing too few properties, driving the prices abnormally high. Gold, because it is limited in supply, cannot be utilized in this manner, precisely why the politicians hate it.

Prior to becoming the “Maestro” of the Fed, Greenspan understood these principles and wrote about them. Here’s an example of what he believed before he became the most reckless Fed chairman in history:

“Deficit spending is simply a scheme for the ‘hidden’ confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights.”

Pretty amazing quote by the man that expanded the fiat money supply more than any Fed chairman in history!

RayAmerica says

Gold has a history of value, whereas fiat currency has a history of eventual failure. Gold is relatively scarce due to the difficulties related to mining, making it limited in its supply. Throughout history, including antiquity, gold has always been in demand and low in supply.

So--if I understand your answer correctly--you like gold because throughout history people have liked to make jewelry out of it. That makes it a good currency? Oh, and it's relatively scarce too. What if people's tastes changed and we no longer wanted to make jewelry out of gold? Would gold still have value then? After all, there are lots of scarce materials that don't have great value.

Why not diamonds? It at least is far more portable than gold.

AdHominem says

Gold and silver are hard currency, which cannot be debased except by fraud.

Simply not true. You just pull the coins out of circulation and remint them. Ever since coinage was invented governments have been debasing their hard currencies. You need to read more history. Here is a brief article on the subject.
http://www.campaignforliberty.com/blog.php?view=6085
For anyone with a more scholarly bent here is a pretty well researched article on debasements http://www.google.co.nz/#hl=en&q=history+of+currency+debasements&meta=&aq=f&aqi=g2&aql=&oq=&gs_rfai=&fp=bb66be834872d4aa

So your continued reference to "sound currency" doesn't make much sense. Very few hard currencies survived all that long either. Coins were constantly be reminted. Financial collapses happened regularly under gold/silver standards. The great depression happened when most of the world was on the gold standard including the US.

I'm not per se defending fiat currency, but pointing out the the gold standard is far from a panacea.

bob2356 says

oins were constantly be reminted.

That is so true. This is why a dollar must be defined as a specific amount and purity of metal. You may remember me saying that earlier?

I think that’s mostly because gold gets bid up too high during times of uncertainty

Yeah, like when people are afraid the fiat "dollar" or government might collapse. In either case gold is highly desirable to many people. Of course if everyone already owned gold or their currency was gold backed, these spikes and volatility would be avoided. No need to resort to panic gold buying when your currency is "as good as gold!" (even better if it IS GOLD!)

In fact the "value" of an ounce of gold was about $20 from 1786 to 1933. -Gold standard years and quite a nice run don't you think?
The value of an ounce of gold was $35 from 1934 to nearly 1971 -Bretton Woods quasi gold standard years up till failure due to unbridled deficit spending without remorse/willingness to repay: to fund Vietnam and the New Deal. Nixon made his official FU and up yours to the world by closing the gold window and officially declaring the world America's bitch.
Since 1971 the value of the dollar has floated and this has caused the "volatility" in the gold market. If we had a gold backed dollar like in 1933 before FDR confiscated them and started to mess things up, we would still have a $20 double eagle (nearly one ounce of gold) in circulation. So you see it is the Federal Reserve note "dollar" that is volatile, not gold.

Soon the world may decide America is the bitch, and abandon us and our worthless "dollars" all together.

Put it another way The Federal Reserve note "dollar" is a giant ponzi scheme. You don't want to be dependent on them when the ponzi scheme collapses.

source http://www.measuringworth.org/datasets/gold/

Yeah, the world will stop using those dollars that they have in their foreign currency funds. That'll show us! Why, if they do that we'll have no choice but to...uh, what again? Stop selling us products and destroy their own economies?

Or they could stop loaning us money and stop buying treasuries - OOPS.

Todays book for non-reading, uneducated individuals: Economics in One Lesson, by Henry Hazlitt.

BTW - I would LOVE to get suggestions on books to read with other viewpoints. Any ideas? Hahahaha.

Adho - right on target !!! "They" can't stand it... good job in pointing out reality.

Here's an article for you Abe:

http://www.guardian.co.uk/business/2010/apr/12/gold-gordon-brown-sell-off

And an excerpt:

Yet the irony is that, in the world economy, gold has never meant less. A century ago, during the final years of a flourishing gold standard, every major unit of currency in the world was simply a promise for a certain amount. The central banks could not issue money unless they had the gold somewhere to back it up, so currency held its value well – sometimes too well, because if gold supplies did not keep pace with economic growth, it caused deflation, wage cuts, and a general economic drag.

In 1949, according to Green, around 75% of all the gold that had ever been mined was being held inside one building, Fort Knox in Kentucky (which Auric Goldfinger, 15 fictional years later, failed to destroy). But the economist John Maynard Keynes famously regarded the gold standard as a "barbarous relic", and it did not survive the money printing of the two world wars – being gradually replaced by today's free-floating system, where currencies hold their values because central banks promise to make sure they do. There is still gold in vaults, but very little.

"It's a drop in the ocean," says Stephen King, HSBC's chief economist and author of Losing Control: the Emerging Threats to Western Prosperity. "[Gold] doesn't really matter very much these days for the running of the global economy."

But centuries of attachment to gold do not fade so quickly, as the prime minister has found. And some people, often known as "gold bugs", continue to argue that this magic metal is a natural store of value, or that its movements are the only way of reading what the world is up to.

"It's something, I think, that people don't often understand," says King. "They seem to think that gold is special, because it's shiny or whatever. But the truth of the matter is that gold is valuable [only] because people believe it to be valuable."

Tatu - you are exactly RIGHT !!! You said: "In the world economy, gold has never meant less". That is precisely why the world economy is in shambles. Countries around the world got OFF the gold standard after the Untied States did BECAUSE they could not economically keep pace with America who could now "print money out of thin air".

Now, less than four decades later, the world economy, and its collective citizens are paying the price. This would not be happening if every country in the world had remained ON the gold standard. That would have REQUIRED financial discipline, something politicians don't have. Politicians cannot buy votes having financial discipline.

Unfortunately, I believe you'll find this concept too easy to understand - therefore you'll disagree. BTW, any book recommendations ??

Honest Abe says

Now, less than four decades later, the world economy, and its collective citizens are paying the price. This would not be happening if every country in the world had remained ON the gold standard. That would have REQUIRED financial discipline, something politicians don’t have. Politicians cannot buy votes having financial discipline.

What would not be happening? The US ran deficits where it was on the gold standard.

Honest Abe says

BTW, any book recommendations ??

Sorry--forgot to answer that. I gave you book recommendations awhile back. Not surprisingly, you didn't like them.... I'm guessing that you only read stuff that agrees with your warped belief system.

Honest Abe says

“It’s something, I think, that people don’t often understand,” says King. “They seem to think that gold is special, because it’s shiny or whatever. But the truth of the matter is that gold is valuable [only] because people believe it to be valuable.”

That's the key takeaway from the article for you Abe...