161 replies to this topic

[Br Cornelius]

acidhead, on 02 October 2012 - 06:54 AM, said:

Gold would never reduce itself to nothing.. it's not possible.

But a currency with interest at source will always reduce itself to nothing over time. Gold cannot be used as a reference if you charge interest on the currency on which it is based. You may not understand what I am saying here (despite having clearly stated it in a previous post). The money supply itself should not have interest charged on it by the central bank - otherwise it will devalue over time. However it is fine to charge interest on capitol lent to a private individual. the two things are entirely seperate aspects of money and its use.

Why should we pay a private central bank interest for the right to use the only currency which we are allowed to use. What have they done to earn that interest other than monopolise the money supply ? They are taxing us by stealth and offering no services in return.

Br Cornelius

Edited by Br Cornelius, 02 October 2012 - 11:37 AM.

[Mr Right Wing]

Br Cornelius, on 02 October 2012 - 11:34 AM, said:

But a currency with interest at source will always reduce itself to nothing over time. Gold cannot be used as a reference if you charge interest on the currency by which it is backed. You may not understand what I am saying here (despite having clearly stated it in a previous post). The money supply itself should not have interest charged on it by the central bank - otherwise it will devalue over time. However it is fine to charge interest on capitol lent to a private individual. the two things are entirely seperate aspects of money and its use.

Br Cornelius

Guys, if the amount of paper money was fixed then in times of budget deficit a government wouldnt be able to use inflation to reduce the amount owed.

Deficits often occur during wartime (WW1+WW2), recessions, natural disasters, famine, plague, etc. We would go bankrupt quickly without the means to reduce what is owed by inflation.

[Little Fish]

Mr Right Wing, on 02 October 2012 - 11:42 AM, said:

Guys, if the amount of paper money was fixed then in times of budget deficit a government wouldnt be able to use inflation to reduce the amount owed.

Deficits often occur during wartime (WW1+WW2), recessions, natural disasters, famine, plague, etc. We would go bankrupt quickly without the means to reduce what is owed by inflation.

why should savers and pensioners foot the bill for the debts of others?
inflation is an invisible tax which takes wealth away from those who have managed their wealth responsibly. inflation also, as you say, reduces the debts of those that were irresponsible with their wealth.

[Mr Right Wing]

Little Fish, on 02 October 2012 - 11:53 AM, said:

why should savers and pensioners foot the bill for the debts of others?
inflation is an invisible tax which takes wealth away from those who have managed their wealth responsibly. inflation also, as you say, reduces the debts of those that were irresponsible with their wealth.

Inflation is a vital mechanism in balancing the books of a nation.

The economic problems were caused by the Labour Party deciding to nationalise the banks. It could have -
1. Let them go bust.
2. Created a state bank, absorbed the debt, then let that go bust.

But no the reds decided to nationalise the lot and give the nation a debt of £1 trillion in doing so.

Instead if banning inflation go for the real cause. Ban the Labour Party.

[Karlis]

Can anyone cite an example, where inflation was counter-balanced by specific aspects built into the economic system?

[questionmark]

Karlis, on 02 October 2012 - 02:15 PM, said:

Can anyone cite an example, where inflation was counter-balanced by specific aspects built into the economic system?

successfully or attempted?

The New Zealanders have a good explanation of built in systems. But we have to see this as control of domestic issues, others like the price of raw materials sourced from abroad cannot be controlled domestically...

[Br Cornelius]

Mr Right Wing, on 02 October 2012 - 11:42 AM, said:

Guys, if the amount of paper money was fixed then in times of budget deficit a government wouldnt be able to use inflation to reduce the amount owed.

Deficits often occur during wartime (WW1+WW2), recessions, natural disasters, famine, plague, etc. We would go bankrupt quickly without the means to reduce what is owed by inflation.

Which is a good thing ??

Everyone else faces consequences of running up bad debts. Seems to confirm that the whole war thing is something of a scam perpetrated by Governments living way beyond their means. Have you noticed how the productive economies of the world have given up on making war on their neighbours.

Br Cornelius

[acidhead]

Br Cornelius, on 02 October 2012 - 11:34 AM, said:

But a currency with interest at source will always reduce itself to nothing over time. Gold cannot be used as a reference if you charge interest on the currency on which it is based. You may not understand what I am saying here (despite having clearly stated it in a previous post). The money supply itself should not have interest charged on it by the central bank - otherwise it will devalue over time. However it is fine to charge interest on capitol lent to a private individual. the two things are entirely seperate aspects of money and its use.

Why should we pay a private central bank interest for the right to use the only currency which we are allowed to use. What have they done to earn that interest other than monopolise the money supply ? They are taxing us by stealth and offering no services in return.

Br Cornelius

No I think BR what you're missing is Gold 's value is determined by the market.  While all other commodities perish gold does not.  It's here forever to stay while others go extinct.  It's a fair medium of exchange, as is other precious metal because their value will always have a market share......... forever.

[questionmark]

acidhead, on 03 October 2012 - 03:16 AM, said:

No I think BR what you're missing is Gold 's value is determined by the market.  While all other commodities perish gold does not.  It's here forever to stay while others go extinct.  It's a fair medium of exchange, as is other precious metal because their value will always have a market share......... forever.

And precisely that makes it, among many other factors already mentioned, inadequate as standard for any currency.

[acidhead]

whatever

[acidhead]

Don't ever let the gold standard antagonists deceive your doubt.   Sure history repeats but we're experiencing nothing like anything else we've ever seen before.  Those who cling to the past are also deceived by those who carried out the same pattern.  A deal has been brokered.  A deal of the century, as it will be billed.   Obama is there to deliver it and sell it to the American public.... It's not going to go over well.

[questionmark]

acidhead, on 06 October 2012 - 04:23 AM, said:

Don't ever let the gold standard antagonists deceive your doubt.   Sure history repeats but we're experiencing nothing like anything else we've ever seen before.  Those who cling to the past are also deceived by those who carried out the same pattern.  A deal has been brokered.  A deal of the century, as it will be billed.   Obama is there to deliver it and sell it to the American public.... It's not going to go over well.

Right, and the gold standard is very much of the past, in fact 100s of years past.

[Br Cornelius]

questionmark, on 06 October 2012 - 08:33 AM, said:

Right, and the gold standard is very much of the past, in fact 100s of years past.

Every time anyone attempts to stay on the Gold Standard they fall off the wagon after a few years or at best a decade or so.

Br Cornelius

[acidhead]

Br Cornelius, on 06 October 2012 - 09:28 AM, said:

Every time anyone attempts to stay on the Gold Standard they fall off the wagon after a few years or at best a decade or so.

Br Cornelius

Yet, each time it wasn't a result of a failure of the gold standard. It was a result of poor GOV intervention.

[Yamato]

Karlis, on 02 October 2012 - 02:15 PM, said:

Can anyone cite an example, where inflation was counter-balanced by specific aspects built into the economic system?

Competition and innovation in the free market.