wintersFright

17 ms·

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by wintersFright 14y ago
[ The following is not authored by me but I submit it as a useful and thought provoking explanation. Original can be found on ZeroHedge] There are a number of people who would like to see the return of hard money, which is to say money "bac
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by wintersFright 14y ago
the trick is to realise that currency was not designed to be a store of value so don't use it as such. To paraphrase Silvio Gesell, an economist in favor of symbolic currency almost a century ago, "All the physical assets of the world are a
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by wintersFright 14y ago
fiat (govt currency) risk is if you are keeping 100 million in a bank account and Bernanke keeps running the printer, then one day you will wake up and it will buy approx three eggs. So best to ensure you have physical wealth assets on hand
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by wintersFright 14y ago
>>Bitcoins could replace gold. umm. no. central banks hold gold as a reserve asset. all other reserve assets are liabilities of foreign govt's. eg: USG. Central banks aren't about to replace the only unencumbered physical asset they
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by wintersFright 14y ago
but you need a police force to enforce fiat :)
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by wintersFright 14y ago
People arguably trust FRN's since the majority continue to save in FRN's/bank credits (I agree the trust is misplaced).
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by wintersFright 14y ago
Interesting that they don't address whether there are concerns about it eroding tax revenue or if it is a threat to federal reserve notes.
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by wintersFright 14y ago
Another thing to consider is that a 'dollar' was consistent in name only over that period. until 1900: A dollar represented a weight of gold and silver 1900: $20.67 / oz gold 1933: $35 / oz gold (internationally only, domestically it was ju
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by wintersFright 14y ago
right - got you.
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by wintersFright 14y ago
totally agree
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by wintersFright 14y ago
>>My grandma kept a stash... Interesting. I've asked my grandma how she saved given she was in the USD=42oz period but her response was we never had enough to save (postwar period really). My mum would rather believe a nobel prize w
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by wintersFright 14y ago
I'd agree with your last sentence if you substituted 'goldbugs' for 'paperbugs' :) Some history for you: A USD until 1971 represented a thing. It was redeemable for a specific weight of gold. After Nixon shock it become a concept. It is now
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by wintersFright 14y ago
I normally lurk so I don't know why I can't reply to your most recent, so replying here. Agree on your criticism of my loose word of the term saves. I don't agree with your reasons on why people don't buy gold though - most would have no id
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by wintersFright 14y ago
See heading 'The myth of a safe deposit box seizures order' http://en.wikipedia.org/wiki/Executive_Order_6102 As an aside I wonder what percentage of the population had boxes back then - compared to now. I mean no one I know has them now
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by wintersFright 14y ago
>>Barrel of oil yesterday was $X today it's $X+Y So as a vendor of goods, you won't mind if you are continually repricing the goods you sell today because the paper you received for the goods sold yesterday doesn't cover the value y
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by wintersFright 14y ago
He is referring to the Big Mac Index - a measure of purchasing power parity http://en.wikipedia.org/wiki/Big_Mac_Index
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by wintersFright 14y ago
"you still need US dollars to buy oil" well as long as the oil producers are happy exchanging the world's economic lifeblood for paper IOU's which Ben Bernanke is devalueing as fast as he can. I wouldn't bet the current situation will cont
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by wintersFright 14y ago
1) In the 30's more people owned gold. Now people are dishoarding gold (cash4gold). Going after gold hoarders won't yield much. Also no one in the 30's went to jail. 2) Coins from a reputable mint are pretty easy. The tungsten forgeries are
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by wintersFright 14y ago
One idea I came across a while ago is the idea of a 'national dividend'. Basically everyone gets a base amount of money you could live off. If people want to work harder and earn more money, they are free to. Unfortunately I can't recall t
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by wintersFright 14y ago
I wonder why the power plant has been blacked out?
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Curiosity Rover: Martian Solar Day 2 Panorama(360pano.eu)
8 points by wintersFright 14y ago|1 comments
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by wintersFright 14y ago
That is only a problem if you try and use the currency as a Store-of-value. Use it only as a Medium-of-Exchange and the fluctations don't really matter. Money wasn't meant to be saved. Earn and pay your bills in the monetary plane. Save you
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by wintersFright 15y ago
I wonder how well we will handle the adverse conditions when we have been letting the car do all the work in fair weather scenarios? "Google wants me to drive in this weather? I haven't driven for 2 years! Now let me see - where is that ind
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by wintersFright 15y ago
You don't have to believe in the fall of civilisation to realise that the US Govt is currently borrowing $1 trillion per year to fund the non negotiable American lifesyle. Things that cannot go on forever won't, and this is one of them. Tak
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by wintersFright 15y ago
People price things in gold as there is a roughly known and finite quantity either in vaults or in the ground. USD's however have no upper bound and can be conjured into existence as 1's and 0's. Remember there are three functions of money
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by wintersFright 15y ago
The realist sees the exhorbitant privilege of paying China paper dollars in return for a shipments of iPhones won't go on forever. When that happens it will be the American workforce clamouring for sweatshop jobs to put food on the table. J
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by wintersFright 15y ago
the coin doesn't hit the economy but it enables further borrowing which does. surprised at all the 'no this is actually quote ok' arguments. you can't print value out of thin air. you only print volume which taxes the holders of existing US
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by wintersFright 15y ago
As an zeroHedge reading, armchair economist i think there are a lot of flaws in that guys argument "Bitcoin does not have a central bank capable of printing and lending bitcoins" >>I rather think thats the point. Lending is inflatio
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by wintersFright 16y ago
Douglas Adams: Imagine a puddle waking up one morning and thinking, 'This is an interesting world I find myself in, an interesting hole I find myself in, fits me rather neatly, doesn't it? In fact it fits me staggeringly well, must have bee