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Thread: Gold Standard???

  1. #11

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    I've been giving this all a lot of thought, and I seriously doubt we will ever get back to a gold standard.

    1) Banks need a fiat currency to function.
    Banks use what's called fractional banking. This means for every dollar that is deposited in the bank, the bank really has $.03 in cash. The rest of it gets loaned out several times and deposited several times, so banks are actually loaning out somewhere around $3,800 in loans. This creates more dollars out of thin air as the loans are paid off.

    2) The Federal Reserve controls the amount of money in circulation.
    Whenever there is not enough money in circulation, the Federal Reserve does what is called Quantitative Easing which keeps the supply of money growing at a steady rate. We see this as inflation, when it is actually devaluation or debasement of the Dollar. The economy slows, banks don't loan as much money out, Quantitative Easing makes up the difference. If too much money is in circulation and the Federal Reserve removes money from circulation. I can't remember the term for that.

    3) International Debt and Trade Deficits are not paid with gold.
    Richard Nixon took us off the gold standard in 1972 by signing a bill into law that allows the US to pay off debt in paper money (money transfer). All of this debt to other countries, is monetized through the inflation and devaluation of the dollar. While we accuse other countries of manipulating their curiencies, our Federal Reserve is out there doing the same thing. So we can technically say our government doesn't manipulate the Dollar... we just hire a bank to do it for us.

    Conclusion:
    In order for us to go onto the gold standard or any standard of backing the Dollar with value, we would have to make some drastic changes to our banking system. The Federal Reserve has to go. We won't need them, because we will no longer have a fiat currency. Banks will not be able to charge interest for loans. Compound interest will destroy the value-backed currency model. Fractional banking will have to stop as well. Our National Debt will have to be paid off, and we will need to operate the government on a balanced budget. National debt will eat into the value-backed currency value and since we can't print money to cover the debt, debt will eventually take over the entire budget of government.

    I would love to see it, but I doubt it will ever happen in my lifetime.
    "All animals are equal, but some animals are more equal than others"

  2. #12

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    Excellent synopsis, and fortunately most rational folks would come to the same conclusion. Since fiscal sanity seems to be in such supply, we're not likely to see anybody get in a big hurry to fix things.
    I know that it's like tryin' to bail out the Queen Mary with a teaspoon, but I don't feel as though I have much standin' to piss & moan if I don't make a sacrifice myself. I won't take SocSec unless I feel I really need it. Lettin' 'em keep another 25 grand in the Federal account ain't really gonna make a difference but it makes me feel as though I'm on just a little bit higher moral ground.
    YMMV

  3. #13
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    Quote Originally Posted by Rich_Vale74 View Post
    Excellent synopsis, and fortunately most rational folks would come to the same conclusion. Since fiscal sanity seems to be in such supply, we're not likely to see anybody get in a big hurry to fix things.
    I know that it's like tryin' to bail out the Queen Mary with a teaspoon, but I don't feel as though I have much standin' to piss & moan if I don't make a sacrifice myself. I won't take SocSec unless I feel I really need it. Lettin' 'em keep another 25 grand in the Federal account ain't really gonna make a difference but it makes me feel as though I'm on just a little bit higher moral ground.
    YMMV
    While I applaud and appreciate your thoughts about SS, I don't agree. In spite what some see to think, SS is not a free "gimme" from the guv. They took money from me for a whole lot of years, spent it stupidly, and I got no interest from it. They owe me a debt and I won't it back, EVERY CENT OF IT...PLUS INTEREST OWED ON THE "LOAN". Had they invested the excess they took in, from the start, SS would not be in the mess its in today. But, NOOOO!! They had to put the excess into the treasury and spent it on their stupid boon doggles. So, yeah, now its time for them to repay the debt. And BTW, that's YOUR money you're gonna let the keep. It isn't theirs. They took it without asking you or me (blasted pirates!), IN ADDITION TO INCOME TAXES. Had they showed any sense of physcal (SP) responsibility for the last 100 years it would be different. But they just want to wring every penny they can from us and continue to find excuses to take even more. Sorry, don't mean to sound so high handed, but I'm fed up with government thievery. If I ran my famiy budget the way they do the government's budget I wouldn't have so much as a wool blanket to cover with on cold nights.
    Last edited by beowulf; 02-02-2020 at 03:21 PM.

  4. #14

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    I appreciate your thoughts, Beowulf, and I ain't sayin' I won't avail myself of the the funds at sometime in the future. You're entirely right about how they've screwed up SocSec in every way possible. In a week or so I'm gonna be 10 years past the age at which I coulda started drawin' one of those checks, and by waitin', it means that if/when I do it'll be a good bit more than if I'd jumped at it with the first opportunity. Of course, since I'm still workin' 6 days a week there'd have been some tax consequences as I understand it. My thinkin' for years has been that I'd try to set myself up so that I wouldn't need to count on that money, only that it'd be there if I really need it. Those who're just startin' out in the workin' world have to realize that this system ain't gonna be able to pay out for them the way folks gettin' a check now hope it'll keep doin'.
    As the sayin' goes, the kids who're fundin' your "SocSec retirement" are the one's who'll pick your retirement home.
    The thing about which you and I disagree most is the concept that it's "your" or "my" money. They've conned most folks into believin' that, but the courts ruled long ago that you have no right to that money specifically. It stopped bein' mine when they took it from my earnings before it even got to my paycheck. If I want "my" money I can go down to town to my bank or credit union and take out "my" money. I can even fill out some forms to withdraw what's in my retirement accounts. I actually asked the lady on the phone from the SocSec office when she told me I should take it, if I could drop in and get back everything that was withheld. When she said no, she had to agree that it wasn't really "my" money.
    Again, YMMV.

    Edited to add that I didn't mean to hijack this thread. Sorry.
    Last edited by Rich_Vale74; 02-02-2020 at 04:34 PM.

  5. #15
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    Quote Originally Posted by Rich_Vale74 View Post
    I appreciate your thoughts, Beowulf, and I ain't sayin' I won't avail myself of the the funds at sometime in the future. You're entirely right about how they've screwed up SocSec in every way possible. In a week or so I'm gonna be 10 years past the age at which I coulda started drawin' one of those checks, and by waitin', it means that if/when I do it'll be a good bit more than if I'd jumped at it with the first opportunity. Of course, since I'm still workin' 6 days a week there'd have been some tax consequences as I understand it. My thinkin' for years has been that I'd try to set myself up so that I wouldn't need to count on that money, only that it'd be there if I really need it. Those who're just startin' out in the workin' world have to realize that this system ain't gonna be able to pay out for them the way folks gettin' a check now hope it'll keep doin'.
    As the sayin' goes, the kids who're fundin' your "SocSec retirement" are the one's who'll pick your retirement home.
    The thing about which you and I disagree most is the concept that it's "your" or "my" money. They've conned most folks into believin' that, but the courts ruled long ago that you have no right to that money specifically. It stopped bein' mine when they took it from my earnings before it even got to my paycheck. If I want "my" money I can go down to town to my bank or credit union and take out "my" money. I can even fill out some forms to withdraw what's in my retirement accounts. I actually asked the lady on the phone from the SocSec office when she told me I should take it, if I could drop in and get back everything that was withheld. When she said no, she had to agree that it wasn't really "my" money.
    Again, YMMV.

    Edited to add that I didn't mean to hijack this thread. Sorry.
    Sure can't argue your point. But, the part about mine/yours/ours/ theirs...You're right. Its ours...until they steal it from us. Sort of like the highwayman who robs the stagecoach. Problem is, guv likes to consider everything theirs, and they're just letting us use it. BOTTOM DEALING, BACK SHOOTIN, FOUR SLUSHING, FORKED TONGUED, LYING, THIEVING PIRATES!!!!

  6. #16
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    Quote Originally Posted by Rich_Vale74 View Post
    The thing about which you and I disagree most is the concept that it's "your" or "my" money. They've conned most folks into believin' that, but the courts ruled long ago that you have no right to that money specifically. It stopped bein' mine when they took it from my earnings before it even got to my paycheck. If I want "my" money I can go down to town to my bank or credit union and take out "my" money. I can even fill out some forms to withdraw what's in my retirement accounts. I actually asked the lady on the phone from the SocSec office when she told me I should take it, if I could drop in and get back everything that was withheld. When she said no, she had to agree that it wasn't really "my" money.
    Again, YMMV.

    .

    So, by your thinking, even though you worked for it, it's not your money, because they didn't put it in your paycheck ?

  7. #17

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    Just my of lookin' at it, I suppose. I think of it as them takin' it like they do the other taxes. They're smart enough to do it a little at a time, weekly, bi-weekly, monthly... they know that they'd be in lots of trouble if we all had to sit down and write out a check once a year for all of it.
    There may be other things that I'll give money to voluntarily, but those are by my own choice. If I choose to give soon-to-be-outdated storage food to a person or organization, or tithe, that's still like money that may be mine but I feel I cant' keep it. Again, my choice. The money I get and keep is what I use to pay bills, buy food and save for retirement and other things.

  8. #18
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    Interesting take from X22. I think he may be thinking along my lines, the possibility of POTUS declaring our national debt null and void, due the corruption and the fact that the Fed is unconstitutional;

    Pay close attention at the 12:30 mark;
    https://www.youtube.com/watch?v=t06BUWcvDT4

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