patrick.net

I'll solve this all for every one of you with what I learned before pre-school:

100 cents = 1 dollar

End of discussion. Problem solved.

The correct solution is feeding the

http://www.youtube.com/watch?v=JnX-D4kkPOQ

Many either don't know, or perhaps don't care to know, what sound money is. A dollar can't even be defined, that in itself is dishonest. A dollar is a dollar because the government says it is - haha. Without a uniform system of standard weights and measures there is chaos.

simchaland says

I’ll solve this all for every one of you with what I learned before pre-school:
100 cents = 1 dollar
End of discussion. Problem solved.

2 Bits + 2 Bits + 2 Bits + 2 Bits = A dollar

All for the money hole stand up and hollar!

Hilarious video Vicente: My favorite line was "I don't take money from special interests but if I did I would throw it right down the hole because I am a patriot!

In all seriousness though, the reason a dollar is 8 bits is because a dollar is a specific amount of silver and eight bits is a dollar chopped into 8 pieces to facilitate trade. Of course today it would be even easier to chop metal into bits, we wouldn't need to carry coins or bits in our pockets. We can do it digitally just like the banks do now with credit cards.

Is there any point to this post?

Honest Abe says

Many either don’t know, or perhaps don’t care to know, what sound money is. A dollar can’t even be defined, that in itself is dishonest. A dollar is a dollar because the government says it is - haha. Without a uniform system of standard weights and measures there is chaos.

A dollar is a dollar because the government says it is and the people (and the rest of the world) accepts it as such. It really is that simple. That you can't grasp this concept (I'm guessing you never took Macro 101?) is beyond me.

A currency is not some fundamental universal concept. It's an arbitrary value assigned to an arbitrary thing by human beings. Altering it doesn't require changing the laws of physics.

AdHominem says

n all seriousness though, the reason a dollar is 8 bits is because a dollar is a specific amount of silver and eight bits is a dollar chopped into 8 pieces to facilitate trade.

That has to be the densest thing said yet on this thread. You don't even know the etymology of the term "bit" and now you're using it to assert some silly idea of what arbitrary amount of silver makes up a dollar?

Of course today it would be even easier to chop metal into bits, we wouldn’t need to carry coins or bits in our pockets. We can do it digitally just like the banks do now with credit cards.

Yeah cause that'll happen.

Still no luck exchanging your silver for goods and services I see.

Kevin, your tone and rhetoric shows a need to belittle rather than persuade. So whatever floats your boat.

Yes, I was an A student in economics and encouraged to major in it. Having a firm understanding of economics I chose a more lucrative path.

In your Orwellian training, no doubt you were programed to believe that a dollar is a dollar because big brother says so. But in fact, when the fledgling nation was looking to define a currency, they actually did some investigation about what the people where using as money. They found that spanish dollars (also known as pieces of eight, and thus the 2 bits, 4 bits, 6 bits a dollar rhyme) was the preferred choice in the free market. The founders also know of the requirements of Aristotle for a sound currency, and knew that precious metals fit the bill to a T. So naturally the early American leaders adopted the silver currency and standard in accordance with the will of the people. The fact that you deny and discredit this is your own arrogant downfall.

FYI there are already private companies who sell precious metal savings and debit accounts and their acceptance and use is growing in popularity, especially in a world where currency devaluation and collapse is a growing concern.

Nomograph says

You judge a nation by it’s people, not by it’s government....We are the wealthiest people in the world.

The cumulative household debt of Americans is over $16.5 trillion (that is in addition to the national debt of over $12.5 trillion). This is a level of debt that other nations could only dream of achieving. God bless America and the Federal Reserve who made it all possible!!!

I love this country as much as you do, that is why it is so sad to see it indebted to and enslaved by the banksters and corporations the FED enables. They are so good at it that they are even exporting our debt to other countries and using their labor and resources to support us and greatly enrich their own profits, power and influence! Eventually this all will end. And unfortunately you won't be so smug then, because right now it is actually sadly entertaining how arrogant and informed you consider yourself.

This is off topic and I don't know what your specialty is but I am curious if you know of any advancements in the understanding of the etiology of certain immune disorders such as hyperthyroidism or idiopathic adrenal insufficiency?

AdHominem says

This is off topic and I don’t know what your specialty is but I am curious if you know of any advancements in the understanding of the etiology of certain immune disorders such as hyperthyroidism or idiopathic adrenal insufficiency?

...and Nomo, I'm sure that you don't mind giving me an online consult. It hurts my neck when I stand on my head. Do you have any advice? (you're welcome in advance for the opportunity to provide the obvious answer)

Oh, friend, I don't deny that people used silver as a medium of exchange 250 years ago. What I take issue with is this absurd assertion that there is some fundamental natural constant for the value of said medium of exchange.

To a lesser extent I take issue with the idea that metallic currency is actually going to solve any real problems in the world.

But, please, the next time you're buying groceries, try to slap down some silver and let me know how that works out for you.

Kevin, try this - Google: How sound money prevents tyranny. You'll get over 900,000 articles to read in about .43 seconds. Read and learn my friend, then you'll understand the value of sound money and how that will solve many problems in the world.

Respectfully,
Abe

Bah, only 900K hits? I see "moon landing conspiracy" comes in at nearly 4 MILLION! You'll have to do better if your argument is that quantity=quality.

I like Google Trends a lot. It shows me that "Huttaree militia" was the 5th hottest search today. Ranks well below "Ricky Martin news" though.

Where was I going with this? I forget.

$1 = 99 cents when bought on credit (WF Visa card). YMMV.

Honest Abe says

Kevin, try this - Google: How sound money prevents tyranny. You’ll get over 900,000 articles to read in about .43 seconds. Read and learn my friend, then you’ll understand the value of sound money and how that will solve many problems in the world.
Respectfully,
Abe

Hasn't anyone here ever heard of debasing coinage. It's been done since coins were invented, including the vaunted spanish dollar everyone is talking about. There is nothing sound about metal coins any more than seashells. If governments want to debase the currency they will no matter what it's made of. Everyone is missing the point that currency only has value as a medium of exchange for goods and services, not by having any intrinsic value in and of itself.

This whole post is meaningless anyway. There were dozens of spanish coins minted in the western world during colonial history with many different values and quite a few debasements. The alleged standard dollar at the time of the revolution could have been any one of a number of spanish coins, both silver and gold, of various values in circulation at the time of the American revolution.

Hasn't anyone other than me read how the lack of sound money leads to tyranny? A mind is a terrible thing to waste. Liberalism is a mental disorder.

Honest Abe says

Liberalism is a mental disorder.

Yet it is the dominant status quo in every modern economy. The LACK of liberalism can be found in Iran, North Korea, Myanmar, Saudi Arabia, Pakistan -- ie the real shitholes of the world.

The nicer and more successful a place is, the more liberal it is. Funny how that works.

Liberalism is essentially the rejection of freemarket Monopoly®-game morality.

Anti-liberals simply fail to understand that real estate price escalation is the spectre behind every "free" economy. Real estate will simply suck every last free dollar out of the system, out of the hands of productive members into the wallets of specuvestors and rentiers, since the supply of land is fixed and the demand (in every place worth living) is unbounded.

The liberal welfare state simply redirects this parasitical flow into wealth-creation and wealth-preserving community functions -- subsidized parks, schools, hospitals, beaches.

(Ideally. The actual implementation often leaves a lot to be desired, of course. A people only get the government they deserve, no less and no more)

Kevin says

Oh, friend, I don’t deny that people used silver as a medium of exchange 250 years ago. What I take issue with is this absurd assertion that there is some fundamental natural constant for the value of said medium of exchange.
To a lesser extent I take issue with the idea that metallic currency is actually going to solve any real problems in the world.
But, please, the next time you’re buying groceries, try to slap down some silver and let me know how that works out for you.

Precious metals are still a store of value and medium of exchange in many parts of the world. In fact the Chinese government is encouraging that its citizens save their money in the form of silver and/or gold. In our country we may not use silver or gold in our daily life, but many Americans do use it as an investment (not necessarily to make money, but to preserve purchasing power in an inflationary environment). Gold is an important part of other cultures and savings/trade for example in the Middle East and India.

A dollar as a piece of silver of a particular weight and purity is not merely a medium of exchange. It meets all four of Aristotle's requirements for good money:

* Durable: Money must stand the test of time and the elements. It must not fade, corrode, or change through time;
* Portable: Good money needs to hold a high amount of 'worth' relative to its weight and size;
* Divisible: Money should be relatively easy to separate and re-combine without affecting its fundamental characteristics. An extension of this idea is that the item should be "fungible", defined as "being freely exchangeable or replaceable, in whole or in part, for another of like nature or kind."
* Intrinsically Valuable: This value of money should be independent of any other object and contained in the money itself, starting with rarity.

Will having sound money such as Aristotle described solve all of our problems? Of course not, but it would be a good start.

AdHominem says

Precious metals are still a store of value and medium of exchange in many parts of the world. In fact the Chinese government is encouraging that its citizens save their money in the form of silver and/or gold.

You can do that here, you know. Just buy some gold with your hated dollars.

Honest Abe says

Hasn’t anyone other than me read how the lack of sound money leads to tyranny? A mind is a terrible thing to waste. Liberalism is a mental disorder.

C'mon! I've read a book! It has pages & everything!

Honest Abe says

Kevin, try this - Google: How sound money prevents tyranny. You’ll get over 900,000 articles to read in about .43 seconds. Read and learn my friend, then you’ll understand the value of sound money and how that will solve many problems in the world.
Respectfully,

Abe

There weren't any tyrants when we used metal for money?

AdHominem says

Precious metals are still a store of value and medium of exchange in many parts of the world. In fact the Chinese government is encouraging that its citizens save their money in the form of silver and/or gold. In our country we may not use silver or gold in our daily life, but many Americans do use it as an investment (not necessarily to make money, but to preserve purchasing power in an inflationary environment). Gold is an important part of other cultures and savings/trade for example in the Middle East and India.

Uh, not to point out the obvious, but silver and gold do have actual market value. You can buy them, just like the people in india and china that you think are doing this (and I won't even argue about what those people are actually doing, but arguing that we should be more like china or india is amusing to me).

Nobody is arguing that the metals themselves are worthless, just that using them for money isn't going to solve any actual problem. Using "sound money" would not have prevented a single problem that we have in the US today.

Just go back to before the Nixon shock.

Inflation? Check!
Government debt? Check!
Unsustainable spending programs? Check!
Tyrants running the world? Check!
High taxes? Check!

All of these things occurred when we used metal as money (albeit indirectly).

Kevin says

Just go back to before the Nixon shock.

Inflation? Check!
Government debt? Check!
Unsustainable spending programs? Check!
Tyrants running the world? Check!
High taxes? Check!

fiat "dollar", not truly backed by anything? CHECK!
FEDERAL RESERVE? CHECK!
EXPLODING NATIONAL DEBT (thanks to FED)? CHECK!

as i said earlier....

Will having sound money such as Aristotle described solve all of our problems? Of course not, but it would be a good start.

So what is the liberal solution? I can't wait !!

Honest Abe says

So what is the liberal solution? I can’t wait !!

I don't know--what is the problem?

Shiny metals and pretty rocks only hold value because human beings imbue them with "value" and find them "desirable."

Pieces of paper and tokens only hold value because human beings imbue them with "value" and find them "desirable."

No specie holds value unless a human mind assigns value to it. There is no such thing as "intrinsic value" when it comes to money. Species hold value only if people decide that they hold value, end of story.

tatupu70 says

I don’t know–what is the problem?

Exactly. There is no problem. Everyone has a job. And no one has any debt. Things are peachy, watch American Idol and be happy.

AdHominem says

Exactly. There is no problem. Everyone has a job. And no one has any debt. Things are peachy, watch American Idol and be happy

I'm not a big fan of Idol, but I'm glad you're starting to look at things in a different light. You'll live longer...

tatupu70 says

You’ll live longer…

is that a threat?

Because it sounds like what a gangster might say. For your own good know what I mean?

A threat--lol? Optimistic people tend to live longer...

AdHominem says

tatupu70 says

I don’t know–what is the problem?

Exactly. There is no problem. Everyone has a job. And no one has any debt. Things are peachy, watch American Idol and be happy.

So using metal for money is going to make sure that everyone has a job, and that nobody has any debt? Awesome. I didn't realize that the world was perfect before Nixon...

The world was never perfect, and won't be anytime soon. But we can have a better money standard, one that the people choose and not the banksters.

"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered...I believe that banking institutions are more dangerous to our liberties than standing armies... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." Thomas Jefferson

AdHominem says

The world was never perfect, and won’t be anytime soon. But we can have a better money standard, one that the people choose and not the banksters.

And the people are better equipped to define the monetary system because....? Last time I checked, it was "the people", through their elected leaders, who chose to create the semi-privatized central bank that we have today.

Our biggest financial problems, unemployment and the national debt, are both caused by the desires of the people (specifically, cheap products, big social programs, and revenge). Please explain to me how using metal for money would:

1. Reduce spending on the three big government programs (military, social security, medicare)
2. Create jobs

Shit, I forgot that everything Thomas Jefferson ever said was an irrefutable truth and that he never made a single mistake in his life. Clearly quoting things that he said about banking 250 years ago is a great way to argue your point.

Inflating the money supply devalues the dollar. Thats why there are laws against counterfeiting, because that devalues the dollar.

Aren't all things in commerce defined? Please name one product that someone would buy, or use - but not know the quantity of that which they are buying? All things used in commerce, trade, exchange, barter, etc. must be defined to prevent theft, fraud, chaos.

2 + 2 = 4.

These are really basic concepts - but you appear too smart to understand them.

Abe

P.S. I can tell by your comment's you still have not taken the time to google: how the lack of sound money leads to tyranny (and national debt, and big social programs, and war, and unlimited entitlement programs and a damaged economy, etc).

tatupu70 says

AdHominem says

Exactly. There is no problem. Everyone has a job. And no one has any debt. Things are peachy, watch American Idol and be happy

I’m not a big fan of Idol, but I’m glad you’re starting to look at things in a different light. You’ll live longer…

How dare you threaten him? That's a mean thing to say - implying that he can be happy & have a long life. It's people like you that ruin the whole "the sky is falling" vibe. I demand that you apologize!

Nomograph says

You should be figuring out how to protect and grow your wealth on your own (HINT: try ownership and forget about currency).

That works very well for some fraction of the most wealthy among us. However, the vast majority ofus use the current fruits of our labor to support the needs of family. The working poor, middle, and upper middle class all fall into this category. Employee compensation never keeps up with inflation. The extreme case of Weimar Germany is an example of the catastrophy that hyperinflation can bring to wage earners.

Those that own enough assets to retire, like Nomo, would do fine during inflation and hyperinflation as they feel the benefit of the net wealth transfer from the less fortunate.

Nomograph says

I honestly can’t understand why you insist that the government provide you with a wealth-storage program.

The concern is about stealing wage value from the workers, rather than stealing the stored wealth of the investment class. As Nomo likes to point out, the rich people will do fine. No demographic benefits more from market turbulence, the boom/bust cycle, hyperinflations, and depressions than those with enough wealth to capitalize on the resulting "opportunities". This is when the super rich "fleece the sheep" so to speak.

Therefore, as 4x likes to say, follow the money. The super rich and powerful that pull the levers of our government machine have an enormous vested interest in fostering booms and busts. The easiest way to accomplish this task is via loose monetary and fiscal policies.

CBOEtrader - THANK YOU !!!

Abe

Honest Abe says

Inflating the money supply devalues the dollar. Thats why there are laws against counterfeiting, because that devalues the dollar.
Aren’t all things in commerce defined? Please name one product that someone would buy, or use - but not know the quantity of that which they are buying? All things used in commerce, trade, exchange, barter, etc. must be defined to prevent theft, fraud, chaos.
2 + 2 = 4.
These are really basic concepts - but you appear too smart to understand them.
Abe
P.S. I can tell by your comment’s you still have not taken the time to google: how the lack of sound money leads to tyranny (and national debt, and big social programs, and war, and unlimited entitlement programs and a damaged economy, etc).

Yeah, you still haven't explained how using metal for money would prevent the two main problems with the current economy -- problems we had when we DID have metal for money and continue to have today.

I'll be waiting.

You assume two fallacies.

RE: Employment-
The natural state of men and women is to work, if nothing else to provide for themselves. In fact a working person can produce much more than they will consume. It takes interference from other men or women to change this natural state. Which is precisely why governments are instituted among consenting men and women, to insure that this natural state of affairs may remain in place. To attempt to restrain men from exerting influence over others. To protect the liberty to do the work that you desire and reap the fruits of that labor as a just reward for said labor. To outlaw slavery.

Let's say money did not exist, not even gold or silver. Do you still think we would have "unemployment?" In this cashless society it would be rather difficult to get into deep debt. Who would loan to a slothful man? In this society only usable commodities would have any value. Even that value would be limited. It would do a man no good to own tons of land (On second thought maybe land would still be worth owning if you somehow get other people to work it for you but chances are they would just kill you and work it for themselves), piles of grain, or barrels of oil because what worth would they be to him? And who would help him acquire more let alone protect what he has? Wouldn't workers instead choose to work to acquire for themselves? The wealthy man would be seen as a hoarder and a detriment to everyone else. Of course this cashless society could not progress past a subsistence level (and maybe that isn't such a bad thing, especially if you have Native American or similar ancestry).

Enter Gold and silver (or other similar forms of money which by nature of their scarcity lend themselves as a medium of stable exchange). Money changes everything. Money IS influence, and only influence can bring another person to do your will rather than their own. Money enables the hoarder to pay people to protect and increase his hoard. The ancients called the love of money the root of all evil and is this not true? Money enables one man to influence/dictate the rules and lives of other men and women.

Gold and silver as money limit the influence of the rich, by nature of their limited supply.

The FED on the other hand gives the PtB complete control over money and therefore COMPLETE and UNLIMITED INFLUENCE over the affairs of the people under its dominion. In the game of Monopoly the end result is always the same. But most people don't realize there are two winners. The person who bankrupts everyone else AND THE BANK! The bank ALWAYS WINS. And one of the reasons the bank can never lose is that it cannot run out of money/influence. The rules of the game say that if the bank runs out of money it can just print more. In the United States the situation is the same. The FED can never run out of money and, just like in the game of monopoly the large corporations (monopolies) are the ones that benefit from the unlimited supply of money. The small companies and individuals will eventually be entirely owned by the bank and the corporations that grow up around it. We soon won't be able to buy or sell without their permission. In fact we are all slaves to these corporations whether we admit it or not. The FED made America a giant version of Monopoly. The funny part is that while they are taking control of more and more assets (notice the rich getting richer and the middle class shrinking?) you think you are winning. The PtB want you to think so. They are happy for you. Oh sure it is still better to be an American than a Haitain for now. And as long as the powers that be can make you believe it is in your best interest to serve them, you will. Why do you think the Chinese submit to their slave masters? Our slavery is just less extreme (right now) than theirs.

In order to limit their influence we must take back control of our money-currency.

RE: spending/debt

The FED makes this extreme load of debt possible. The FED can't regulate or prevent moral hazard, THE FED IS MORAL HAZARD! It allows politicians to offer bribes for votes without raising taxes. It allows corporations to do the same offering guaranteed profits to investors while socializing losses. Nixon had to close the gold window because foreign investors knew that servicing our our debt would be impossible without devaluing the dollar (and Nixon knew our gold was more valuable than our dollar, this is not rocket science for you either is it Kevin? For some reason Nixon wanted to keep our worthless gold and spend our valuable "dollars"?). As lender of last resort the Fed allowed Nixon to continue to run up the debt with little consequence to American corporate interests. The wealthy have first access to newly created money and therefore are able to spend it (buying up even more assets) before the effects of inflation are fully realized. In essence the wealthy get to spend their money and keep their gold. Eventually this Federal Reserve monetary regime will end of course, but in the meantime look for the rich to continue getting richer, using the FED as their source of influence of last resort.

The only way we can end the reckless spending and get out of debt is to end the FED.

AdHominem says

Enter Gold and silver (or other similar forms of money which by nature of their scarcity lend themselves as a medium of stable exchange). Money changes everything. Money IS influence, and only influence can bring another person to do your will rather than their own. Money enables the hoarder to pay people to protect and increase his hoard. The ancients called the love of money the root of all evil and is this not true? Money enables one man to influence/dictate the rules and lives of other men and women.

No one ever influenced/dictated the rules and lives of other men and women before coinage was invented? That's not the way I read history.

"In order to have winners, free markets must have losers", is that what you said?

A free market is simply cooperative free choice. Willing buyer - willing seller. The supermarket is selling apples for $1.50 per pound. Someone agrees to pay $1.50 for a pound of apples. Thats a willing buyer and a willing seller. Thats cooperative free choice. Thats the essence of freedom.

Please point out the "loser" in this transaction.

How is the worker, who is making at least minimum wage, now has health care benefits, possibly subsidized housing and maybe even food stamps the loser?

Seriously, no jobs in this country are MANDITORY are they? Someone chose to pick apples. They made a FREE CHOICE that the pay they got was worth the time it took. It was a win-win decision, made with free choice by both parties. That in itself is freedom. Freedom is good - its the absence of coercion, the absence of force.

Only the element of FORCE creates a loser in an otherwise mutually agreeable, win-win transaction. A simple example is the difference of love vs. rape. The same act with different outcome. One involves a mutually agreeable, loving, win-win, free choice meeting. The other is a win-lose meeting, without free choice and the element of force. You get it, right?