How is new money created in the economy?

[ThisIsMe]

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

Ok, so what provides stability for our future? How long will the “full faith and credit” of the United States be able to keep our dollar afloat.

 

[Lesh]

Ok, so what provides stability for our future? How long will the “full faith and credit” of the United States be able to keep our dollar afloat.

As long as our economy and military are strong

 

[Harpy Eagle]

Ok, so what provides stability for our future? How long will the “full faith and credit” of the United States be able to keep our dollar afloat.

longer than you or I will live. The British Pound Sterling has been around for 1200 plus years.

 

[JohnDB]

Ok, so what provides stability for our future? How long will the “full faith and credit” of the United States be able to keep our dollar afloat.

The economy....AKA the GDP.

As our GDP continues to grow the Dollar will continue to gain power and desirability as it is the currency of Legal Tender in the US.

The problem arises as the US economy shrinks due to corporate flight from taxation. The companies are still essentially American but conduct most manufacturing and revenue generation outside the US. Meaning they are untaxed. (META, Apple, Twitter, and etc)
Also leveraged stocks in companies is how salaries are paid....you can't tax a loan either.

 

[ThisIsMe]

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

But you can’t sell chunks of your house to pay for things……and you can’t carry it around in your pocket.

Gold at least can be broken down into to smaller, more tradable sizes.

But, golfing gator has made me see the error of my ways. I guess we’ll just live off of our baseless fiat currency until such time as then world doesn’t want it anymore, then we’ll go back to the barter system…

 

[ThisIsMe]

longer than you or I will live. The British Pound Sterling has been around for 1200 plus years.

I don’t know, I plan to cryogenically freeze myself and wake up 1000 years in the future. I hope our dollar is still around then!

 

[Harpy Eagle]

I don’t know, I plan to cryogenically freeze myself and wake up 1000 years in the future. I hope our dollar is still around then!

I would hope by then we have a Star Trek type world where money does not even seem to exist.

 

[Lesh]

I would hope by then we have a Star Trek type world where money does not even seem to exist.

Money will always exist

 

[ThisIsMe]

I would hope by then we have a Star Trek type world where money does not even seem to exist.

First contact.

“The economics of the future are somewhat different. The acquisition of wealth is no longer the driving force, we seek to better ourselves”

I too thought that would be great, until then, we have currency…

 

[Stormy Daniels]

But you can’t sell chunks of your house to pay for things……and you can’t carry it around in your pocket.

Gold at least can be broken down into to smaller, more tradable sizes.

But, golfing gator has made me see the error of my ways. I guess we’ll just live off of our baseless fiat currency until such time as then world doesn’t want it anymore, then we’ll go back to the barter system…

You can't pay for anything with gold. It would just be a barter. You could do the same with your house, if you want.

And that's really what all of your arguments come down to. Your have a personal preference to use gold for bartering than something else, like your house or he wood in your back yard.

 

[Captain Caveman]

This is the kind of thing that tends to be tossed around a lot around here, but new people seem to address at its roots. So let's talk about it.

Both.

Central bank buys securities on the open market which gives more liquidity to banks to loan out. But, it devalues your currency against other countries.

 

[Lesh]

Both.

Central bank buys securities on the open market which gives more liquidity to banks to loan out. But, it devalues your currency against other countries.

So when those loans to bank are paid back...it revalues your currwency?

 

[Captain Caveman]

So when those loans to bank are paid back...it revalues your currwency?

It's explained here -

Exchange Rates: Impact of QE on the value of a currency

In this revision topic video we build an answer to a question examining the possible impact of an expansion of quantitative easing (QE) on the external value of a currency.

www.tutor2u.net

 

[Lesh]

It's explained here -

Exchange Rates: Impact of QE on the value of a currency

In this revision topic video we build an answer to a question examining the possible impact of an expansion of quantitative easing (QE) on the external value of a currency.

www.tutor2u.net

Actually it's not. It doesn't answer my question

 

[Captain Caveman]

Actually it's not. It doesn't answer my question

Ok, never mind. I can only cover economics.

 

[ThisIsMe]

You can't pay for anything with gold. It would just be a barter. You could do the same with your house, if you want.

And that's really what all of your arguments come down to. Your have a personal preference to use gold for bartering than something else, like your house or he wood in your back yard.

You can't pay for anything with gold. It would just be a barter. You could do the same with your house, if you want.

Patron: “excuse me, I’d like to buy a loaf of bread, a gallon of milk, and some steaks”

Vendor: “ok that will be $25, how would you like to pay?”

Patron: “well, all I have is my house…”

Vendor: “seems fair…I’ll take it..”

I don’t have a preference for gold, this entire post line was based off of the premise that the dollar is a fiat currency with no real value. Gold has been traditionally a store of value because people desire it, for different things. You all argue that gold has no more value than our fiat currency.

When the dollar crashes, i guess those who spent a lifetime of filling their house with random stuff will be the rich ones..

 

[Lesh]

Patron: “excuse me, I’d like to buy a loaf of bread, a gallon of milk, and some steaks”

Vendor: “ok that will be $25, how would you like to pay?”

Patron: “well, all I have is my house…”

Vendor: “seems fair…I’ll take it..”

I don’t have a preference for gold, this entire post line was based off of the premise that the dollar is a fiat currency with no real value. Gold has been traditionally a store of value because people desire it, for different things. You all argue that gold has no more value than our fiat currency.

When the dollar crashes, i guess those who spent a lifetime of filling their house with random stuff will be the rich ones..

Sure buddy. Pay for that with a Krugerrand.

See what you get for change

 

[22lcidw]

longer than you or I will live. The British Pound Sterling has been around for 1200 plus years.

The U.K. is a pauper compared to what it was. Reduced to regional wars at best although they have nukes. The name of a currency means nothing if it is nearing the same.