#1
I'm writing a 10-12 page paper on the Gold Standard, 10 sources. It's beefy, and I want your opinions.

For those of you who may not know what that is, before Nixon, the U.S. dollar used to represent ownership of a certain amount of gold held in a vault at the National Treasury. Therefor, the dollar actually did have something to back it up, rather than the word of the U.S. government. For some time, the price of gold was set at around $20 an ounce.

In the present state of the economy, with gold above $1500/oz, do you believe that it was a mistake to abandon the Gold Standard? Should it be reinstated?
"The future's uncertain, and The End is always near."
-Jim Morrison
#2
what does the US dollar represent now?
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I had a dream about your avatar once, so yes of course.

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#3
Quote by fearofthemark
what does the US dollar represent now?


What you believe it to represent.
"The future's uncertain, and The End is always near."
-Jim Morrison
#4
Quote by SlinkyBlue
What you believe it to represent.


Sexual favours.

Really, when you pay $300 for something, you're trading 300 sexual favours for that object. Giving money to kids...
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#5
if you're into crucifying mankind on a cross of gold, that's cool, I guess.
I think we took too many drugs when we were kids,
'cause now we like to make
Weird Music
-Wayne Coyne
#6
Always believe in your soul!
You've got the power to know
You're indestructible!
Always believe iiiiiin!

...spandau ballet anyone?
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My chest hurts after that.
#7
Quote by iantheman
if you're into crucifying mankind on a cross of gold, that's cool, I guess.


.... eh?
"The future's uncertain, and The End is always near."
-Jim Morrison
#8
Quote by SlinkyBlue
What you believe it to represent.



I dunno, I guess I've always wanted the dollar to represent pure metal
Quote by guitarxo
I had a dream about your avatar once, so yes of course.

Quote by Bladez22


every time i see that twirling electrode avatar of yours I know that the post is worth reading or the link is worth clicking


#9
Quote by LastSlayerKing
Always believe in your soul!
You've got the power to know
You're indestructible!
Always believe iiiiiin!

...spandau ballet anyone?

I love that song, I just heard it a couple of minutes ago.
STಠ_ಠ
#10
Quote by SlinkyBlue
What you believe it to represent.

So if I believe a dollar is worth 200€ I can go to my bank and say "hey bankchick, just slap me 200 for this sucker!"?? You gotta be trollin me.

I thought the international trade and stock n shizzle controlled the currencies
Quote by Ulalume
I had a friend who was held at gunpoint as a cashier. The robber told him to give him all the money in the register and what not. Apparently my friend then replied, "Would you like a slurpee with that?"
#11
Well, what establishes how much gold is worth in the first place (besides the quality of the gold)? Is it the fact that it is shiny, or that the tools you make out of it are just like wooden ones, but break blocks at a faster rate?
Some people use quotations,
Some people are just perverse,
Some people have ironic machinations,
But I'll just break into verse!
#13
Quote by TimTheWizard
So if I believe a dollar is worth 200€ I can go to my bank and say "hey bankchick, just slap me 200 for this sucker!"?? You gotta be trollin me.

I thought the international trade and stock n shizzle controlled the currencies


The ultimate value of a currency is the faith that the people, consumers and purchasers have in it. Nothing really controls currency other than the U.S. government, who decides to deflate or inflate it through interest rates and the money supply, etc.

The reason that coke is 1.30 a bottle now isn't because the manufacturer is screwing you, it's because the 99c that you used to pay in 1999 was worth more than it is today. That's happening for various reasons of course, which is what I'm writing my paper about.

Quote by Vabolo
Well, what establishes how much gold is worth in the first place (besides the quality of the gold)? Is it the fact that it is shiny, or that the tools you make out of it are just like wooden ones, but break blocks at a faster rate?


Today, Gold is an alternative currency. As is silver. The reason it's so high today is because people have less faith in the dollar, and paper money in general.

What I'm trying to say is, the faith that the economy has in the dollar controls the value of gold. When people don't trust the dollar, gold and silver go up. When they feel comfortable with their money, it goes down.
"The future's uncertain, and The End is always near."
-Jim Morrison
Last edited by SlinkyBlue at May 9, 2011,
#14
Quote by SlinkyBlue
.... eh?

Free and unlimited coinage of silver at the ratio of 16:1 is clearly the only reasonable solution.
I think we took too many drugs when we were kids,
'cause now we like to make
Weird Music
-Wayne Coyne
Last edited by iantheman at May 9, 2011,
#15
Quote by TimTheWizard
So if I believe a dollar is worth 200€ I can go to my bank and say "hey bankchick, just slap me 200 for this sucker!"?? You gotta be trollin me.

I thought the international trade and stock n shizzle controlled the currencies


Money is an abstract concept invented by mankind. It represents (as of now, I believe) a certain amount of time you spent working. Think of it this way: if you earn 15 bucks an hour, and that a Gibson Les Paul is worth 1500$, then that guitar is actually worth 100 hours of work.

Of course, for it to work, everyone has to have the same idea of what it's worth, or else we have a very broken trade system (it kind of is, when you think about it, since a guy packing bags at a grocery store here would make about ten bucks an hour for that kind of work, and a kid in a sweatshop would make less than that in a week, and packing paper and/or plastic bags full of goods seems a lot less forceful than being chained to a workstation in crummy conditions all day; but I'm rambling on here).
Some people use quotations,
Some people are just perverse,
Some people have ironic machinations,
But I'll just break into verse!
#16
I know money makes no sense, but if no one is actually controlling the value of it... then who does make up the trades? If I go to my bank and say I wanna trade 10€ for dollars, I'll get a certain amount of Dollars instead of the question "well sir, how much do you trust the dollar?"

This thread is really confusing me, but I'd love to understand where the money value comes from now.
Quote by Ulalume
I had a friend who was held at gunpoint as a cashier. The robber told him to give him all the money in the register and what not. Apparently my friend then replied, "Would you like a slurpee with that?"
#17
Quote by TimTheWizard

This thread is really confusing me, but I'd love to understand where the money value comes from now.


The value of money is determined by the trust in it, man. Also, if you turn in 10 pounds for dollars, you shouldn't consider it "changing" money or whaterver.

What you're actually doing is buying U.S. dollars.

The U.S. dollar is the World Reserve Currency, meaning 99% of countries accept it, so it tends to be a little more steady than the others. But that assumption is dwindling. It costs 2.1 million units of Vietnamese currency to buy 100USD, fun fact.

Anyway. The value of money is controlled by interest rates, increasing or decreasing the money supply, discount rates, etc... the variables associated with each are called Monetary and Fiscal policy, something I'm sure you've heard of. I don't fully understand it either, I can recite how it works, but I can't recite why it works. I hope to one day.

The Fed printed up 700 billion dollars to bail out the banks. There's only an estimated $829 billion physical dollars in circulation.

Every time they print up one of those stimulus packages, they essentially take half your money by halving the value of your holdings. The public just hasn't really figured that out yet.
"The future's uncertain, and The End is always near."
-Jim Morrison
Last edited by SlinkyBlue at May 9, 2011,
#18
Hmm.. I think I'm starting to get to get it. So if everyone would starting to sell their gold that means the dollar would drop in value, because theit trust in dollar has lowered too. Right?

Sorry if I'm annoying or seem dumb, but it's hard to talk in English bout smth that needs jargon/lingo (the difficult words to explain a certain topic)
Quote by Ulalume
I had a friend who was held at gunpoint as a cashier. The robber told him to give him all the money in the register and what not. Apparently my friend then replied, "Would you like a slurpee with that?"
#19
Quote by SlinkyBlue

The ultimate value of a currency is the faith that the people, consumers and purchasers have in it. Nothing really controls currency other than the U.S. government, who decides to deflate or inflate it through interest rates and the money supply, etc.


wrong bro, the federal reserve bank is not govt. owned, it is a private entity owned by a group of shareholders.
#20
Quote by GandalfWh1te
wrong bro, the federal reserve bank is not govt. owned, it is a private entity owned by a group of shareholders.


You're right. That's a recent legislation, however, and very controversial for those who know about it. Reagan, right?

The National Treasury shouldn't be privatized.
"The future's uncertain, and The End is always near."
-Jim Morrison