How is new money created in the economy?

[Harpy Eagle]

Also, why are you so averse to gold? lol

why are you so enamored by it? It only has the value people assign to it, just like a fiat currency

 

[ThisIsMe]

can you list a few of them that have failed?

I gave you few that are doing just fine, so now your turn to back up your claim they "all fail"

Well, the video series I posted had mentioned it, plus

A Short History of Fiat Currency Failures: 9 Currencies That Have Collapsed

The history of fiat currency is the same each time. Too much is printed, creating inflation or hyperinflation and the currency is rejected.

www.hardmoneyhistory.com

The history of fiat currency is more or less the same in each circumstance. The government prints too much, creates inflation or hyperinflation and the currency is rejected.

Every fiat currency has failed because eventually fiat ceases to function as a store of value and a medium of exchange.

The Failure of Money

www.businessinsider.com

Fiat currency has reigned in the last forty years, but every fiat currency that has existed in history has eventually failed. A study of 775 fiat currencies indicates the average life expectancy of fiat currencies is 27 years, with some taking a month to crash and others surviving for centuries.

Just going off of things like that.

 

[Harpy Eagle]

Well, the video series I posted had mentioned it, plus

A Short History of Fiat Currency Failures: 9 Currencies That Have Collapsed

The history of fiat currency is the same each time. Too much is printed, creating inflation or hyperinflation and the currency is rejected.

www.hardmoneyhistory.com

Fun little statement at the end of your article. Seems they have not all failed, in fact most have not

It will fail as every fiat currency in history has failed (with the exception, of course, of those still in circulation).

 

[ThisIsMe]

why are you so enamored by it? It only has the value people assign to it, just like a fiat currency

I wouldn’t say I’m enamored by it, I just recognize that all fiat currency is backed by nothing, but gold is its own source of value. Gold has been used since like 1500BC and it’s still a desired commodity today. Fiat currencies come and go.

 

[Lesh]

I wouldn’t say I’m enamored by it, I just recognize that all fiat currency is backed by nothing, but gold is its own source of value. Gold has been used since like 1500BC and it’s still a desired commodity today. Fiat currencies come and go.

View attachment 886357

Gold is somewhat scarce and has some use
Otherwise it’s little different than currency

 

[ThisIsMe]

Fun little statement at the end of your article. Seems they have not all failed, in fact most have not

It will fail as every fiat currency in history has failed (with the exception, of course, of those still in circulation).

Well, obviously those still in existence have not failed, yet, the point being that the track record of fiat currency is not good and it appears, according to the sources I’ve listed, all fail and those that haven’t YET, doesn’t mean they won’t. If history and track record holds true, they eventually will. I’ve just found several articles that talk about the failure of all fiat currency..if they are all wrong, then..I don’t know what to say…

Hey, I’m just going off what I read. Honestly, it’s really not anything to worry about, currency will do what it does, nothing we can do about it.

 

[ThisIsMe]

Gold is somewhat scarce and has some use
Otherwise it’s little different than currency

all I can point to is all the articles that say gold has been around since..forever, and they all say gold is a better store of value.

Take it as you will, or not..

 

[Harpy Eagle]

I wouldn’t say I’m enamored by it, I just recognize that all fiat currency is backed by nothing, but gold is its own source of value.

but that value is just what we place on it, no different than fiat currency. I think those that stockpile gold in case of a collapse of society are likely going to be surprised when nobody would trade anything worth having for it.

 

[ThisIsMe]

but that value is just what we place on it, no different than fiat currency. I think those that stockpile gold in case of a collapse of society are likely going to be surprised when nobody would trade anything worth having for it.

I suppose I can see that. Gold has typically been a store of value, but in the event of a collapse, I can also see how individuals wouldn’t recognize it as anything of value because “people” can’t do anything with it other than trade it, but there are some people who would have use for it and to them, it would have value over a collapsed dollar.

So, I suppose then that means that these dozens and dozens of investment websites and economists who say gold is a better store of value, they’re all wrong?

 

[Harpy Eagle]

I suppose I can see that. Gold has typically been a store of value, but in the event of a collapse, I can also see how individuals wouldn’t recognize it as anything of value because “people” can’t do anything with it other than trade it, but there are some people who would have use for it and to them, it would have value over a collapsed dollar.

So, I suppose then that means that these dozens and dozens of investment websites and economists who say gold is a better store of value, they’re all wrong?

Investment websites are there to sell you a product.

Just a quick google search comes up with all sorts of articles saying gold is not all that it is cracked up to be.

 

[Libby von H]

On what basis are you sure? The basis that governments and private individuals for thousands of years routinely devalued specie in a variety of ways, from shaving coins to debasing the metal by mixing it with junk metals?

It was Isaac Newton who solved that shaving problem NOT some politician
Milled edges on coins are often associated with Isaac Newton. Newton accepted the position of Warden of the Mint in 1696. At his disposal was “a new invention of rounding the money and making the edges of them with letters or graining

 

[ThisIsMe]

Investment websites are there to sell you a product.

Just a quick google search comes up with all sorts of articles saying gold is not all that it is cracked up to be.

Hmm, he said she said? Because a quick search will also show gold to be the be all end all

Also, another thing I hadn’t considered is digital currency. If they push for a digital currency, would you rather have a money you can hold in your hand..or one that is completely hands free that you can’t hold?

 

[Lesh]

Hmm, he said she said? Because a quick search will also show gold to be the be all end all

Also, another thing I hadn’t considered is digital currency. If they push for a digital currency, would you rather have a money you can hold in your hand..or one that is completely hands free that you can’t hold?

Crypto is a joke and lost money is digital

 

[Hutch Starskey]

So you have no idea what creates new money?

First there are products that are made that people want, so a price is paid for said product.
Then there is labor required to make that product so people earn the wages for the creation of that product.

This is how the government can figure out the GDP. Right now the money printed greatly outweighs the earned money. That is because people on welfare who get free shit, never earned that money so there is nothing backing that dollar. Do you understand? When the dollar was bound by the ounce of gold, the government couldnt print more than it had in the depository....

Gross Domestic Product.

126.23%
The U.S. debt to GDP ratio is a measure of how much the federal government owes compared to the size of the economy. In 2020, the U.S. debt to GDP ratio was 126.23%, meaning that the government debt was larger than the annual economic output1. This was a significant increase from 2019, when the ratio was 100.81%1. Another way to measure the U.S. debt is to include all types of debt, such as household, business, and state and local government debt. In this case, the U.S. total debt to GDP ratio was 895.4% in 2020, the highest level ever recorded2.

Firstly though, before a single product can be made or a paycheck earned,
the capital to do so must be raised.

 

[Harpy Eagle]

Hmm, he said she said? Because a quick search will also show gold to be the be all end all

Yep, and as with most things the answer probably lies in the middle

Also, another thing I hadn’t considered is digital currency. If they push for a digital currency, would you rather have a money you can hold in your hand..or one that is completely hands free that you can’t hold?

I do not want a 100% digital currency, but I also pretty much never carry cash. The only time I take cash out is if I am going to be travelling. The last trip I took was over Thanksgiving and that was the last time I had cash on my person.

 

[ThisIsMe]

Yep, and as with most things the answer probably lies in the middle



I do not want a 100% digital currency, but I also pretty much never carry cash. The only time I take cash out is if I am going to be travelling. The last trip I took was over Thanksgiving and that was the last time I had cash on my person.

Right but my question was, if ever they do go to a digital currency, wouldn’t a physical asset like gold be a better hedge than a digital currency that you can’t hold? You’re at the mercy of whatever agency is responsible for keeping it safe and accurate.

 

[Harpy Eagle]

Right but my question was, if ever they do go to a digital currency, wouldn’t a physical asset like gold be a better hedge than a digital currency that you can’t hold? You’re at the mercy of whatever agency is responsible for keeping it safe and accurate.

If you can find someone that wants your gold and will trade it for something you have then sure, that would be awesome. You might find a better market for something like ammo than gold

 

[JohnDB]

Right but my question was, if ever they do go to a digital currency, wouldn’t a physical asset like gold be a better hedge than a digital currency that you can’t hold? You’re at the mercy of whatever agency is responsible for keeping it safe and accurate.

You also are at the mercy of the digital currency blockchain security systems. (Which have been cracked)

That's the dirty little secret nobody wants out.

There's literally billions of dollars worth of phoney digital currency floating around out there. And the fact that nobody really knows if the digital currency they hold is actually worth anything or not is being kept tightly under wraps because the whole thing would collapse.
You steal a $10 that sells for thousands and they might come after you or not.

You steal or destroy billions....you are gonna be the next Jeffrey Epstein.

With all the various "AI"s out there....I'm surprised that bitcoin, erethium, dogecoin and etc is still being traded.

 

[JohnDB]

If you can find someone that wants your gold and will trade it for something you have then sure, that would be awesome. You might find a better market for something like ammo than gold

Things only have value when someone (or groups) desire to possess what you have.

Gold is desirable for its scarcity and for its many uses. (Electrical contacts, radiation stopping, corrosion resistance, malleability, and jewelry)

To a hungry man gold is only valuable if he can buy bread with it.

 

[Stormy Daniels]

Right but my question was, if ever they do go to a digital currency, wouldn’t a physical asset like gold be a better hedge than a digital currency that you can’t hold? You’re at the mercy of whatever agency is responsible for keeping it safe and accurate.

May as well be a house, then. That's a physical asset.