Yes, gold is a medium of exchange. One that apparently lost what looks like 50% of its value between 1913 and 1920, according to your chart in post #25.
Posted on 04/04/2011 10:20:04 AM PDT by JoeProBono
RALEIGH, N.C. - Federal prosecutors on Monday tried to take a hoard of silver "Liberty Dollars" worth about $7 million that authorities say was invented by an Indiana man to compete with U.S. currency.
Bernard von NotHaus, 67, was convicted last month in federal court in Statesville on conspiracy and counterfeiting charges for making and selling the currency, which he promoted as inflation-proof competition for the U.S. dollar....
(Excerpt) Read more at hosted.ap.org ...
Enough! Keep your stupid feud off of Free Republic!
Well, it does. A ounce of 92 percent gold is always a ounce of 92 percent gold. So, at least one part, one variable is fixed, making calculations of the possible values of other things less opaque. But, by and large governments don’t care for clarity. Illuminates, a bit, all sorts of activities.
In that case, a $1 FRN is always a $1 FRN.
So, at least one part, one variable is fixed
If it doesn't keep prices fixed, what is it good for?
Many things go into price. Supply, demand, quality, quantity. But the value of the medium of exchange should remain the same over space and time. Something that the Federal Reserve’s notes haven’t done, despite their supposed mission, or half of it, anyways.
It’s hard to measure, price, something when the measuring units are changed all the time.
You bet.
But the value of the medium of exchange should remain the same over space and time.
That would be a neat trick.
Something that the Federal Reserve’s notes haven’t done
Apparently, according to your chart, gold hasn't either.
It’s no trick, it’s a law, a physical law. An ounce, is an ounce.
At one time, it was thought that legal laws, not physical, were things that brought us closer to some constant, universal truth. Now laws seem to obscure and cloud. Not a good trend line.
I'm sure you've heard that silly claim, an ounce of gold has always bought a good suit? Do you believe that?
Would you rather have a hundred year old, gold 20$ coin, or 20$ bill?
Thanks for the chart, I never knew gold lost so much value over such a short period.
It’s a medium of exchange, neither gold nor FRN’s are stocks. ( English language has different words for different things, unlike, say, Arabic. ).
They are mediums of exchange, neither gold nor FRN’s are stocks. ( English language has different words for different things, unlike, say, Arabic. ).
Yes, gold is a medium of exchange. One that apparently lost what looks like 50% of its value between 1913 and 1920, according to your chart in post #25.
Thanks for the offer, but I read your chart just fine.
LOL! You’re calling MY post stupid
Do you really understand that little about gold as money?
If someone comes up with printing press technology to counterfeit notes, so what? You ahve some counterfeit notes, maybe a few billion; the North Koreans were working on this before. Once you know they’re doing it, you round up all the old money, confirm it’s NOT the counterfeit, and you publish new money. Sure, maybe you take a few billion, but paper money is but a very small portion of the total money supply. Even if they flooded a huge portion of the paper money supply before being detected and countered, you’re talking only a few billion dollars. Painful, but nothing compared to the trillion-dollar stimulus, or Quantitative Easing when it comes to diluting the money supply. There’s only $853 billion total in circulation, out of a national net worth of $45 trillion. Match the entire value of US circulation with counterfeit, and you’ve only taken 2% of the economy down; less than Obama’s stimulus. But realistically, counterfeiters could match only a few percent of the currency, because their very success inherently exposes them.
The problem with gold currency is that any new gold technology is perfectly legal, and not counterfeit. Anyone who can precipitate gold would be able to run their gold machine, and simply PERFECTLY LEGALLY supplant as much US wealth as he could make; with counterfeiters once you catch them, you’ve essentially solved the problem.
The whole gold vs stocks thing is kind of lame. Under any circumstance, it’s insane not to have both in a well-rounded portfolio.
Gold is super-hot right now because we have monetary hyperinflation being masked by economic deflation; If we do a Greenspan-Reagan maneuver to pull out of this death spiral, you’ll see a spike in unemployment and interest rates... but then somehow, but a crash in gold. But then your stocks will start taking off, and if you rebalance your portfolio frequently, you’ll have taken your profits from gold already.
Ok you are clueless. Here’s my last post to you. I’m not talking about illegal counterfeiting, I’m talking about the legal counterfeiting the fed is doing right now. They are massively increasing the quantity of dollars, thereby robbing everyone of their wealth through inflation.
Run along now.
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