Our monetary system

  • Thread starter Mattv81
  • 49 comments
  • 2,802 views
Mattv81

Mattv81

426
This thread is about fiat currency and fractional reserve banking. If you don't know what I'm talking about then please watch these clips in this order:
http://www.youtube.com/watch?v=_dmPchuXIXQ
http://www.youtube.com/watch?v=lBZne09Gf5A
http://www.youtube.com/watch?v=SjUrib_Gh0Y
http://www.youtube.com/watch?v=_BVNN1wqw3k
http://www.youtube.com/watch?v=VPPFgHF9VR4

This clip explains the same thing, but makes it easier to understand:
http://www.youtube.com/watch?v=dQ6hg1oNeGE

IMO, this is a VERY important subject. Possibly the MOST important subject of our age, and the reason behind this economic crisis.

What do you think?
 
Mattv81
What do you think?
Click to expand...
Central economic planning in general, and everything related to it, will be the death of modern society.

Tempo0010
Everyone knows, but who in the planet can do something about it, cantdowithpowerfullpeople
Click to expand...
One hurdle on the way to solving these problems is the fact that most people don't know, and can't be bothered to learn. They're too busy paying their bills and wondering why everything keeps getting worse. I'm no economist, I'm just a young dude in college, but at least I make an effort to familiarize myself with economics and how it relates to pretty much everything. I personally don't believe you can be in favor of liberty and also support Keynesian economics. The two are incompatible.
 
Tempo0010
Everyone knows, but who in the planet can do something about it, cantdowithpowerfullpeople
Click to expand...

Not everyone knows, but yes, a lot of people do these days. This is what this thread is for. I can't accept that there is nothing we can do, but I do realise it's going to be very difficult. There are people who are trying to make a difference, eg. Gaddafi (see this thread)
I would suggest that we need to go to gold backed currency/full reserve banking, and this will prevent the Bank of England, Federal Reserve, etc from unfairly manipulating the economy. I would also suggest that central banks should not be privately owned. I would even go as far as suggesting that no banks should be privately owned, and governments should be in charge of lending, and if interest is charged, then the money should be available somewhere in the system so it's possible to repay. At the moment it's overly complicated, but it's only designed that way so we don't think about it too much. The difficult bit is knowing how to make it happen. I believe there will be a revolution in the west soon like there has been in the middle east. But we have to make sure that our revolution is a genuine revolution directed at the right people and the right problems.
 
Keef
Central economic planning in general, and everything related to it, will be the death of modern society.


One hurdle on the way to solving these problems is the fact that most people don't know, and can't be bothered to learn. They're too busy paying their bills and wondering why everything keeps getting worse. I'm no economist, I'm just a young dude in college, but at least I make an effort to familiarize myself with economics and how it relates to pretty much everything. I personally don't believe you can be in favor of liberty and also support Keynesian economics. The two are incompatible.
Click to expand...

You're absolutely right. Austrian Economics definitely seems to be the way forward, and Ron Paul is the one to make that happen. And from what I've heard, he's actually in with a chance next time. If people keep informing others of these issues then we can increase his chances. The next problem would be, how would we protect him from the Federal Reserve? I believe a massive part of JFK being killed was the fact that he made Executive Order 11110, which would have made a new silver backed currency which was controlled by the government instead of the Federal Reserve.
 
Last edited:
The next few years are going to be interesting for sure.. I don't think it's a stretch to imagine the Euro being scrapped and possibly seeing a depression.

We need to go back to trading with actual things of value, no more theoretical money. If I paint your chicken coop, you give me a chicken or two. I'll pay for my oil change with two pumpkins and a live octopus. Thank you!
 
Neal
Imagine how many pumpkins it would take to buy a house...in Surrey!
Click to expand...

Yes, but you can amass a large stock of evergreens if you trade your pumpkins in mid to late October, then trade your trees for colorful eggs.. (I know it was a poor example, but my point is serious).
 
Neal
Imagine how many pumpkins it would take to buy a house...in Surrey!
Click to expand...
Money can be anything with value. While you could indeed trade pumpkins, or cows, or boats, or corn cobs, the market at large has generally focused on objects with a good combination of value and convenience, and are widely accepted as being exchangeable for various other goods from loaves of bread to lakefront property.

Gold is a pretty decent example.
 
Keef
Money can be anything with value. While you could indeed trade pumpkins, or cows, or boats, or corn cobs, the market at large has generally focused on objects with a good combination of value and convenience, and are widely accepted as being exchangeable for various other goods from loaves of bread to lakefront property.

Gold is a pretty decent example.
Click to expand...

Silver too. In fact silver might be better if the dollar or euro collapses as it comes in much smaller denominations and so it could easily be used as a back up currency if we have hyper inflation. I'm going to trade in one of my krugerrands for silver coins. Anyone got any suggestions on where would be the best place to buy £1000 worth of silver? If possible I'd like to get a mixture of ounce, half ounce, and quarter ounce coins.
 
Last edited:
Most people on the internet are either hardcore libertarians or hardcore socialists. Most of us Opinions Forumers are familiar with monetary policy and its role in the economic crisis.
 
Omnis
Most people on the internet are either hardcore libertarians or hardcore socialists. Most of us Opinions Forumers are familiar with monetary policy and its role in the economic crisis.
Click to expand...

Welcome to the discussion. :)

Yeah, hopefully a few people from the gaming section will stumble across this thread and learn more about it. It's a big topic and there is a lot to learn, so hopefully we can pool our knowledge and teach each other something new.

As someone who knows about this topic, what do you think about this?
 
Last edited:
Keef
At least you'll be able to heat your home nice and toasty as you dump your Papiermarks into the firelpace one wheelbarrow at a time.
Click to expand...


That’s never going to happen and if it does it won’t be in our life time, so again pay me cash.
 
hambone8611
That’s never going to happen and if it does it won’t be in our life time, so again pay me cash.
Click to expand...
It happened in Germany during a span of a few years, hence my reference to the Papiermark. Germany removed gold backing from their paper currency during WW1. By the mid-20s, 20 period-correct American dollars would buy you nearly one hundred billion Papiermarks. We're in the early stages of it as we speak.
 
Grand Prix
Dangerously close to Godwin's Law.

:lol:
Click to expand...
It's actually a good event to make an example of. Germany's post-WW1 economic collapse was one of the main reasons Hitler and his Nazi regime were thrust into power, promising to repair the country and make it great and ooh and ahh and rainbows and unicorns. We all know how that worked out for them.

An economic failure like the one we're on the brink of is most dangerous because you don't know what's going to happen after it. History tells us that it's usually not pretty.
 
Well get rid of cents and start printing billion dollar bills then if it's a problem. Simples.




I kid of course, :lol: I personally wouldn't mind carrying around silver and gold coin currency though.
 
I just learned what Godwin’s law is and I’m still convinced cash will always be king. Nobody ever offered me a chicken under the table to keep Uncle Sam out of the deal,
 
Grand Prix
I personally wouldn't mind carrying around silver and gold coin currency though.
Click to expand...
You could take comfort in the fact that gold and silver have been intensely desirable and valuable to the human race for many thousands of years and probably will be many thousands from now.

EDIT: As of right now, a gold coin weighing as much as a US quarter would be worth about $323. Might be tricky to change at McDonald's, but holy crap, I wouldn't mind stocking a few in a safe under the floorboards.

A silver coin would be worth $8. Muuuuch more reasonable. Also one reason why silver prices have rallied quite a lot faster than gold in recent years.
 
Last edited:
Keef
You could take comfort in the fact that gold and silver have been intensely desirable and valuable to the human race for many thousands of years and probably will be many thousands from now.

EDIT: As of right now, a gold coin weighing as much as a US quarter would be worth about $323. Might be tricky to change at McDonald's, but holy crap, I wouldn't mind stocking a few in a safe under the floorboards.

A silver coin would be worth $8. Muuuuch more reasonable. Also one reason why silver prices have rallied quite a lot faster than gold in recent years.
Click to expand...


Interesting. Although they wouldn't necessarily need to be pure gold and silver would they? Up here our lowest form of paper currency is the $5 bill, with $2 and $1 coins taking up more percentage of the total amount of money printed, I imagine. So less dependent on paper currency. Which might explain why our economy is doing relatively well. Hmmmm. Need to read up more on that.
 
Grand Prix
Interesting. Although they wouldn't necessarily need to be pure gold and silver would they? Up here our lowest form of paper currency is the $5 bill, with $2 and $1 coins taking up more percentage of the total amount of money printed, I imagine. So less dependent on paper currency. Which might explain why our economy is doing relatively well. Hmmmm. Need to read up more on that.
Click to expand...

Not really, because the coins themselves are made of nickel, copper, steel, tin, etc etc. Not metals that are worth much in and of themselves. The thing with gold coins, is that gold and silver are worth something, always have been, and likely always will be.
 
Last edited:
Noob616
Not really, because the coins themselves are made of nickel, copper, steel, tin, etc etc. Not metals that are worth much in and of themselves. The thing with gold coins, is that gold and silver are worth something, always have been, and likely always will be.
Click to expand...

True.
 
Mattv81
Welcome to the discussion. :)

Yeah, hopefully a few people from the gaming section will stumble across this thread and learn more about it. It's a big topic and there is a lot to learn, so hopefully we can pool our knowledge and teach each other something new.

As someone who knows about this topic, what do you think about this?
Click to expand...

You make it seem that some of the gamers have no clue this is going on...and has been going on for a very long time. I think the average citizen just has a tough time thinking or understanding how their oh so great gov't could let this be.
 
Noob616
Not really, because the coins themselves are made of nickel, copper, steel, tin, etc etc. Not metals that are worth much in and of themselves. The thing with gold coins, is that gold and silver are worth something, always have been, and likely always will be.
Click to expand...

Gold and silver coins can also be melted down into their raw materials, meaning that if your nation's currency collapses, you can go to a different country and your coins will be worth something.

I've always found it interesting that gold is so valued though.. I mean other than being rare and shiny, and working as heat shields, it doesn't really have any practical use, and it's certainly something society could do without.
 
Noob616
Not really, because the coins themselves are made of nickel, copper, steel, tin, etc etc. Not metals that are worth much in and of themselves. The thing with gold coins, is that gold and silver are worth something, always have been, and likely always will be.
Click to expand...
Some characteristics that give materials their value are versatility, utility, scarcity. Honestly, if the world were about to end and the only things left were the same amounts of steel and gold each, I would take the steel because you can actually do something with it. Gold is great for trading or for reserve because it is scarce, but you can't actually make anything useful with it.

Paper, like steel, is very useful. But holy jebus there's a lot of trees out there. Even after processing, paper is one of the least valuable things I can think of this side of a pile of dog turds.
 
Paper money has value when its backed by gold. The federal reserve just keeps printing money, every time they shove money into the economy the value of the money in your savings account goes down.


EDIT: I dont know how much money in our economy is backed by gold.
 

Similar threads

atteiros
Livery Editor Tutorial Videos - by Blue Chicken Designs
2
Replies
32
Views
11K
atteiros
atteiros
N
our car channel gran turismo and more
Replies
0
Views
486
nxn
N
IMMORTALPILOT
Ferrari F1 STOCK Goodbye! World Championship
2
Replies
55
Views
5K
MajikTom
MajikTom
IMMORTALPILOT
Ferrari F1 STOCK World Championship Season2/Win big prizes!!
12 13 14
Replies
405
Views
30K
IMMORTALPILOT
IMMORTALPILOT
IMMORTALPILOT
  • Locked
Ferrari F1 World Championship Season4/Win big prizes!!
33 34 35
Replies
1K
Views
50K
IMMORTALPILOT
IMMORTALPILOT

Latest Posts

Back