What Makes a Nation's Money Gain or Hold VALUE???

[Jos]

Palestine Government Loan Will Not Be Delayed, London States

Mandate for Palestine - Minutes of the Permanent Mandates Commission/LoN 12th session (11 November 1927)

The economy of Rural Palestine 1917-1939

The denial came following the publication of a report by the Palestine Hebrew daily, "Ha'aretz"

Yep the Palestine Hebrew daily, "Ha'aretz
printed in? Palestine

 

[Toddsterpatriot]

Palestine Government Loan Will Not Be Delayed, London States

Mandate for Palestine - Minutes of the Permanent Mandates Commission/LoN 12th session (11 November 1927)

The economy of Rural Palestine 1917-1939

The denial came following the publication of a report by the Palestine Hebrew daily, "Ha'aretz"

Yep the Palestine Hebrew daily, "Ha'aretz
printed in? Palestine

A Hebrew newspaper, not an Arabic newspaper.
So that was a Jewish coin you showed. Thanks!

 

[EdwardBaiamonte]

This nation went through many periods of inflation and deflation under the gold standard.

of course no one would say we had a solid gold standard for very long. A solid gold standard makes inflation nearly impossible by tying the amout of money to the amount of gold. Econ 101.

 

[OohPooPahDoo]

This nation went through many periods of inflation and deflation under the gold standard.

of course no one would say we had a solid gold standard for very long. A solid gold standard makes inflation nearly impossible by tying the amout of money to the amount of gold. Econ 101.

Gold was exchanged by the Treasury at the same fixed price for over 100 years. I fail to see how one could have a more stable gold standard.

Why would we want to tie the supply of money to the supply of gold? Is there any particular reason gold miners should get to determine how big the money supply is? Sorry but I don't see the logic in that, seems rather arbitrary. Why not allow the silver miners to determine the money supply instead?

 

[EdwardBaiamonte]

Gold was exchanged by the Treasury at the same fixed price for over 100 years. I fail to see how one could have a more stable gold standard.

For example, the Depression was caused when the the Fed failed to issue enough paper money to equal the gold supply. So, no real gold standard in place!!! Econ 101!!

Why would we want to tie the supply of money to the supply of gold?

to avoid liberal inflation and deflation of course. Econ 101!!

Is there any particular reason gold miners should get to determine how big the money supply is?

they don't because gold supply in ground is very limited. Econ 101!!

Why not allow the silver miners to determine the money supply instead?[/U]

you perhaps could but gold is more precious and has solid history of value whereas silver has been used by liberals to inflate, William Jennings Bryant comes to mind. More econ 101 for you.

 

[DSGE]

Gold was exchanged by the Treasury at the same fixed price for over 100 years. I fail to see how one could have a more stable gold standard.

For example, the Depression was caused when the the Fed failed to issue enough paper money to equal the gold supply. So, no real gold standard in place!!! Econ 101!!

Why would we want to tie the supply of money to the supply of gold?

to avoid liberal inflation and deflation of course. Econ 101!!

Is there any particular reason gold miners should get to determine how big the money supply is?

they don't because gold supply in ground is very limited. Econ 101!!

Why not allow the silver miners to determine the money supply instead?[/U]

you perhaps could but gold is more precious and has solid history of value whereas silver has been used by liberals to inflate, William Jennings Bryant comes to mind. More econ 101 for you.

This is more Macro 202, but do you understand that there's no reason to use gold? Do you understand that if you want the money supply to not grow you can just freeze the quantity of money?

 

[OohPooPahDoo]

Why would we want to tie the supply of money to the supply of gold?

to avoid liberal inflation and deflation of course. Econ 101!!

You have yet to show that tying the supply of money to gold would prevent inflation or delfation, all you do for evidence is say "Econ 101" over and over again, as if that proves something. You even neglect the effect the supply and demand of goods and services has on the price of goods and services, stuff you'd learn in Econ 101.

 

[EdwardBaiamonte]

This is more Macro 202, but do you understand that there's no reason to use gold? Do you understand that if you want the money supply to not grow you can just freeze the quantity of money?

yes you could if it was controlled by a computer not subject to liberal whims as Milton Friedman wanted. Short of that a gold standard represents the the greatest possible commitment to stable money and a stable growing economy.

 

[DSGE]

This is more Macro 202, but do you understand that there's no reason to use gold? Do you understand that if you want the money supply to not grow you can just freeze the quantity of money?

yes you could if it was controlled by a computer not subject to liberal whims as Milton Friedman wanted. Short of that a gold standard represents the the greatest possible commitment to stable money and a stable growing economy.

Right so why are you even considering a gold standard? You can just freeze the quantity of money or have its growth controlled by a computer and get more stability (since the price level won't change with swings in the relative price of gold), and we don't have to waste real resources constantly dealing with gold reserves. By all measures a k-percent growth rule (you may want k=0) is strictly better than a gold standard, so why on earth are you pushing for gold?

Also you aren't considering changes in the velocity of money (granted, they probably didn't cover it in Econ 101). If you're familiar with the equation of exchange that'd be helpful. Did you cover MV = PY in Econ 101?

 

[EdwardBaiamonte]

[
Right so why are you even considering a gold standard?

because it represents the greatest possible commitment to stable money and stable economic growth

 

[OohPooPahDoo]

[
Right so why are you even considering a gold standard?

because it represents the greatest possible commitment to stable money and stable economic growth

No it doesn't. The economy doesn't grow because the supply of money is tied to gold. That's the dumbest fucking thing I've ever heard.

 

[DSGE]

[
Right so why are you even considering a gold standard?

because it represents the greatest possible commitment to stable money and stable economic growth

... did you actually read my post? Jesus christ. K-percent rule > Gold standard. So why not advocate a K-percent rule rather than a gold standard?!

And what about my second question? Did you cover MV=PY? If so, that'll make explaining things a lot easier.

 

[EdwardBaiamonte]

You can just freeze the quantity of money

OMG!!!! are you a child??? who is you" if "you" can freeze it you and the chairman and the board and the politicians and the press can unfreeze it!!!!!!

 

[DSGE]

You can just freeze the quantity of money

OMG!!!! are you a child??? who is you" if "you" can freeze it you and the chairman and the board and the politicians and the press can unfreeze it!!!!!!

"You" is congress. For a binding gold standard to exist congress has to modify the Federal Reserve Act to say "you can only issue base money if you have this much gold backing it". It's just as easy to have congress modify the Federal Reserve Act to say "you have to keep the quantity of base money constant".

 

[EdwardBaiamonte]

It's just as easy to have congress modify the Federal Reserve Act to say "you have to keep the quantity of base money constant".

OMG!!!! JUST AS EASY????? Ron Paul has 30% of the nation organized around a gold standard. No one has 0% organized around your idea!!! Sorry!

 

[OohPooPahDoo]

You can just freeze the quantity of money

OMG!!!! are you a child??? who is you" if "you" can freeze it you and the chairman and the board and the politicians and the press can unfreeze it!!!!!!

The politicians can also decide to issue more currency than their is gold.

Stupid head.

 

[Toddsterpatriot]

It's just as easy to have congress modify the Federal Reserve Act to say "you have to keep the quantity of base money constant".

OMG!!!! JUST AS EASY????? Ron Paul has 30% of the nation organized around a gold standard. No one has 0% organized around your idea!!! Sorry!

Ron Paul has a few ignorant idiots organized around his gold standard. So what?

 

[EdwardBaiamonte]

No it doesn't. The economy doesn't grow because the supply of money is tied to gold. That's the dumbest fucking thing I've ever heard.

everything is dumb to you because you dont think first!! The economy does grow when tied to gold because you then avoid the recessions and depressions that eat up the 3-4 % growth you might acheive in a fiat environment. See what happens when you think first??

 

[DSGE]

It's just as easy to have congress modify the Federal Reserve Act to say "you have to keep the quantity of base money constant".

OMG!!!! JUST AS EASY????? Ron Paul has 30% of the nation organized around a gold standard. No one has 0% organized around your idea!!! Sorry!

You're an idiot. Oh my god.

They question, you stupid nutsack, is why would you ever lend your support to a gold standard when a k-percent rule is strictly better at keeping prices stable.

 

[DSGE]

No it doesn't. The economy doesn't grow because the supply of money is tied to gold. That's the dumbest fucking thing I've ever heard.

everything is dumb to you because you dont think first!! The economy does grow when tied to gold because you then avoid the recessions and depressions that eat up the 3-4 % growth you might acheive in a fiat environment. See what happens when yoou think first??

That's a lie. Tying money to gold will actually increase volatility since you can't offset changes in velocity.