Paper Money VS Gold Coin

Discussion in 'Politics' started by ihopehefails, Jan 17, 2010.

  1. ihopehefails
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    ihopehefails BANNED

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    The big difference between paper fiat money and gold or any other valuable metal used for currency is that gold and its perceived value exist naturally or in the natural realm while the value of fiat money is created by government mandate hence the slogan on every dollar "payable for all debts private and public". Gold coins do not need this. Its value exist by the social agreement between individuals within society. This makes the value of gold something that is freely derived at within the mind of every person in society and like so many other things that exist within the natural realm it exist without the government.

    Rights are like this as well. Natural and inalienable rights exist freely much like the value of gold does while rights the government gives us depend on its existence. The perversed thinking in our modern world is that the value of gold is assigned by the government and is no different that the assigned value of fiat money.

    There is no distinction between the natural realm and public realm anymore.
     
  2. rightwinger
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    rightwinger Paid Messageboard Poster Gold Supporting Member Supporting Member

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    What the hell value does gold have? It is just a metal. If it were not for the hoarding and speculation it would be just a decorative metal
     
  3. Baruch Menachem
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    That value in the natural relm is kind of spooky, as it is easily manipulable. Also, economic activity is tied to the location where you find the stuff, and how hard it is to find.

    Between 1848 and 1903, while there were gold strikes in Austrialia and the US, none of them were all that impressive, compared with what happened in CA. And the CA gold strike really wasn't such a much. So from the period 1861-1903 the world suffered declining prices all over, because the amount of gold found from year to year wasn't enough to maintain price levels. Some years they found a lot, and there was inflation. Some years were very dry, and prices crashed, and those who had loans out suffered.
    After 1903 the english discovered the cyanide process to get gold from ore. This made the gold fields in South Africa and Russia not only workable, but it made them the biggest producers. So from 1903 onward, the gold supply was determined by the internal politics of these two countries.

    So do you want the US money supply to be determined by a conference between South Africa and Russia?

    Think about it for a moment.
     
  4. ihopehefails
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    The hoarding and speculating that you refer to indicates that there is some value being created within the free interactions of the people. Whether you think it is worth anything or not. You have the right to declare it worthless in your own mind but won't because you know that others think it is value.

    Its value exist without the aid of government but the point I was making is that rights in the natural sphere, like the value of gold, also exist in the same way and that is it does not need government to assign them to people.
     
  5. ihopehefails
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    I wasn't aging economics as much as I was arguing how the natural realm of our existence works in regards to our rights. No one needs the government to speak or even excercise all powers available to them. These things we can do freely do not need the government to exist.
     
  6. ihopehefails
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    I don't think it would be different than anything else. I don't think it would hurt anything but my point wasn't about economics.
     
  7. Kevin_Kennedy
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    Kevin_Kennedy Defend Liberty

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  8. Kevin_Kennedy
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    Kevin_Kennedy Defend Liberty

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    What value does a green piece of paper with a dead President on it have? None, except for the promise of the government, whose promises aren't worth the paper their currency is printed on.
     
  9. rightwinger
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    rightwinger Paid Messageboard Poster Gold Supporting Member Supporting Member

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    Why does a decorative metal have value while a viable Government does not?
    Other than the fact it is hoarded, gold has no intrinsic value. How would our lives be diferent if gold ceased to exist?
     
  10. Kevin_Kennedy
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    Kevin_Kennedy Defend Liberty

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    The value of paper money is even easier to manipulate. A couple keystrokes on the computer and you can double the money supply.

    Maintain price levels? Why would you want to maintain price levels? Prices are subjective and thus must go up and down naturally. We shouldn't try to artificially prop them up. As for prices going down because there wasn't enough gold, that's a good thing. It means the currency was becoming worth more.
     

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