Where Does Your Money Come From (cont'd)

What about people who have enough money that they don't have to spend? You are acting like your country would be all middle class people with out any rich people who have money to invest/save/spend. The wealthy would pluck the non-wealthy dry in your system.

It's called a plutocracy. Read some history books.

 

I think we're agreeing here.

 

You're talking out of both sides of your mouth and I'm tired of it.

 

You mean common sense? Yea, I'm sorry about that.

 

We're you a phi felt brother in college?

 

Phi Delt... yea

 

Sorry, autocorrect didn't like delt.

 

So answer the question. What is the difference between someone finding gold in the ground during the gold days and printing money?

Why were countries who had and found the most gold considered the wealthiest?

 

1. The ability to find gold is limited;

2. The gold stays 100% in the private sector; doesn't contribute to the growth of Government, and didn't result in increased taxation of the populace.

 

All public sector intervention is not the same. Military forms of public sector intervention can be more costly than non-military forms of public sector intervention.

 

Gold is a commodity, fiat money isn't.

Supply and demand of a precious metal.

 

the only difference would be that gold also has a non monetary use in electronics and other products. aside from that it's the same. (oh, and you can't print gold.) gold production relative to the gold stock is very small. furthermore, gold mining is no more or less profitable than any other business in any other industry.

 

Wouldn't it be interesting if the ability to mine gold and convert it to currency use parallels the rate of growth of the population?

Natural currency inflation indexed to the population.

Sounds like how it should be.

 

Lol, so you are telling me those years of the gold rush didn't significantly increase the amount of gold we had? And as they found more and more gold, more and more people flocked to these locations to get gold. Why do you think everyone wanted to find gold?

Why do you think those locations flourished when they did find gold?

You guys are simply making things up. There was never a stable amount of gold in the world, and people and countries went out of their way to get it. Simply because they can get what they wanted for it and people were willing to produce and provide services for it.

There is absolutely nothing different than finding gold in the ground and the Govt printing money. If there is someone willing to produce, someone willing to consume, and someone willing to work, then all you need is the medium of exchange to fill in the gaps. No difference whatsoever. This is why America does what I'm saying and hasn't done anything whatsoever of what you are saying in the past 200+ years.

 

Alright, we have made our first step in logic!! So you are admitting that the currency should grow at some rate to parallel population growth. This is a start!! I am proud of you. Now ask yourself the question, why is it beneficial to grow as the population grows. Think about it for a second, don't just say the first thing that comes to your head.

 

It didn't 300 years ago. Gold was a useless metal found in the ground. So now what is your excuse?

 

The value of gold as a currency is not it's value as a commodity. Try again!

 

Being that gold is not currently a government sponsored currency, the value of US minted gold bullion coins and bars, and those minted in foreign countries, are worth the commodity price.

 

I have said this throughout. That is not what your lauded monetary system limits.

Because as the population grows, the amount of represented transactable currency has to grow with it, or it will suppress the velocity of our currency through our economy.

Mining gold does that exact same thing; notes backed by that solid asset can do likewise.

Unfortunately, that is not what your system has been doing.

 

what is my excuse for what?

 

That's ridiculous. Gold was revered long prior to 300 years ago; it was used to represent wealth and prestige long before it became a currency.

 

Fiat money isn't considered a commodity and gold is.

 

I would argue that all money is a commodity

 

While I agree that money can be traded as a commodity, it could be quibbled that commodity money is not fiat money, therefore, fiat money cannot be a truer form of commodity.

 

You definitely have NO education.

Gold was currency thousands of years ago.

What crappy school did you go to? They should be shut down!