Is fiat money heading for the grave?
- Thread starter GunnyGene
- Start date
Good. Germany printed money after WWI and it wasn't pretty when inflation kicked in. When we started on that path I knew retards were steering the ship.
Ever snatch a pacifier from a baby's mouth? Baby usually throws a tantrum. If the Swiss snatch our fiat pacifier I expect a similar result here and in other countries. Welfare would disappear overnight for starters.
So, in layman's terms, what does that mean to us, Joe Average, here in the U.S.?
I'm not a finance guy. But, from what I understand, it would cause a lot of uncertainty & wildly swinging interest rates/inflation/depression as the central banks and govt's tried to cope with it. There's a lot of opinions about it on various financial sites, but none of it good. Russia & China have been buying up a lot of gold in the past few years, and own most of the worlds supply now. Last I heard the US had 8,000tons on hand, from the 22,000 tons we had a few years ago. Price of gold could go to over $5000/oz., etc., etc. Silver and other precious metals would also be part of the mix.
That's coming soon enough. It's already being worked on and tested.
I think it should all go back to a gold standard. It's time to reign in these global banksters. Back when we had real silver in our coins, a quarter and dime would get you a gallon of gas. The silver value in those coins will still get you a gallon of gas but in fiat money it costs about $3.00. It seems like the current value of our money exists because we all think and agree it does. As they keep printing money that perceived value will slip more and more and/or be combined with uncontrollable inflation. Either way our purchasing power is eroded. If it's eroded, where did the wealth it previously gave us go?...to the banksters and guaranteed they will have it in gold or other tangible assets.
Depending on what's happening and the severity, your precious metals could be worth more than gold and silver. At a minimum they are highly valuable in a bartering economy.
Never barter something that will be used to kill you or your family.
That being said... a few things could happen... oil may skyrocket since it's being traded in US fiat dollars and if currency is going back to the "gold standard" it will decrease the value of the US dollar (and other fiat money) thus forcing prices to increase to match the gold standard.... which means your money buys you much less in the world including the USA.
It would be very tumultuous financially for a while before things settle down and equilibrium is formed within the market with the new standard.
It was mentioned that China was buying up a good amount of gold... could be in anticipation of this. Having more backed gold makes the Yen a bit stronger compared to the "fake" communistic hold his has been on the Yen to make China a bit more equitable trading partner on the global scale... ie the Chinese Gov't has been forcefully devaluing the yen for a few years now.
Probably a main concern why UK hasn't entered into the Euro along with the other EU countries and kept the Pound as it's national currency. Saved them a bit during the 2008 global financial meltdown due to USA mortgage crisis that was allowed to be traded internationally.
That being said... a few things could happen... oil may skyrocket since it's being traded in US fiat dollars and if currency is going back to the "gold standard" it will decrease the value of the US dollar (and other fiat money) thus forcing prices to increase to match the gold standard.... which means your money buys you much less in the world including the USA.
It would be very tumultuous financially for a while before things settle down and equilibrium is formed within the market with the new standard.
It was mentioned that China was buying up a good amount of gold... could be in anticipation of this. Having more backed gold makes the Yen a bit stronger compared to the "fake" communistic hold his has been on the Yen to make China a bit more equitable trading partner on the global scale... ie the Chinese Gov't has been forcefully devaluing the yen for a few years now.
Probably a main concern why UK hasn't entered into the Euro along with the other EU countries and kept the Pound as it's national currency. Saved them a bit during the 2008 global financial meltdown due to USA mortgage crisis that was allowed to be traded internationally.
You must have had high gas prices. When I started driving, gas (100 octane) was 19 cents/gal.
Everything is connected, so you may be right about oil. But I read yesterday that oil is likely to hit $50/bbl in 2015 because of our production and a internal dispute in OPEC. Apparently the Saudi's are going for market share and screw the prices. Fracking is working.
MossLvR
.270 WIN
Well, it would threaten the end of the Federal Reserve Bank (a private corporation)and paper money. The US $ is the only allowed way of buying and selling oil in any legal world market and this is what keeps the US $ strong (as it is no longer backed by gold bullion). If the FIAT system is threatened, the USA must go to war to stop it or the US $ will be worthless as oil can then be traded by gold, etc. and that will be a certain end to the American way of life.
Should have thought of that before they decided to go into Fiat money and print more than it's worth. Unless they reel in spending, reduce the social net programs that are being abused, and begin a solid plan to increase GDP as well as grow home based businesses.... its going to come crashing down eventually. And it aint going to be pretty.
MossLvR
.270 WIN
I actually don't believe the 'the social net" programs are the biggest culprits in spending as the poor generally can't lobby and those programs are hosted by very large private corporations that get a nice payout. The real threat to spending is corporate welfare as there is absolutely no benefit to the taxpayer as the money is not reinvested into the homeland or localities. Then again, wtf do I know .
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You got it WM.
Corporate welfare definitely sucks but it's also a real problems when we have 47% of the citizenry deriving most of their income from the other 53%. We have a record number of people of working age that are sitting on the sidelines due to a variety of reasons from lazy slacker to people that want to work and can't find any job. Now throw the illegals (soon to be executive order legals) into the mix. Our economy seems more like a Ponzi scheme that's about to crash.I actually don't believe the 'the social net" programs are the biggest culprits in spending as the poor generally can't lobby and those programs are hosted by very large private corporations that get a nice payout. The real threat to spending is corporate welfare as there is absolutely no benefit to the taxpayer as the money is not reinvested into the homeland or localities. Then again, wtf do I know
It would cause pain to get rid of fiat money but I'd rather deal with it now than when it's catastrophic and forced upon is to deal with it.
You think Obama is going to go for that?
I actually think he's waiting to release his immigration exec. order for when the verdict in Kansas City is released.
Though I know that's totally unrelated to the topic, but I had to throw that in there anyway.
...Or Thanksgiving week.
I actually don't believe the 'the social net" programs are the biggest culprits in spending as the poor generally can't lobby and those programs are hosted by very large private corporations that get a nice payout. The real threat to spending is corporate welfare as there is absolutely no benefit to the taxpayer as the money is not reinvested into the homeland or localities. Then again, wtf do I know
http://www.cbpp.org/cms/?fa=view&id=1258
More than half the budget is on social programs.