Liberty News ForumLNF Forums HereEconomics, Financial News › Why?
Page Index Toggle Pages: 1 [2] 3 4 5 Send TopicPrint
Very Hot Topic (More than 25 Replies) Why? (Read 767 times)
michiganFats
LNF Representative
***
Online

I Love Liberty News Forum!

Posts: 1,379
Joined: Jun 19th, 2017
Re: Why?
Reply #10 - Jun 30th, 2017 at 10:53am
Print Post  
TowardLiberty wrote on Jun 29th, 2017 at 8:18pm:
I am talking about previous monetary regimes in history.

http://www.investopedia.com/terms/b/brettonwoodsagreement.asp


The world is awash in debt.

Gold is the only asset that has zero counter party risk. http://www.investopedia.com/terms/c/counterpartyrisk.asp

That's the main reason why it will play such an important role going forward.



The world has always been awash in debt. Today isn't special. Gold isn't a weapon, it's a hedge and not even a very good one because it's value is subject to the whims of the public just like "fiat" currency.

I don't understand why other counties hedging their bets can be seen as an imminent collapse here or as an economic attack.
  
Back to top
 
IP Logged
 
TowardLiberty
LNF Speaker
LNF Bunker
*****
Online

anti-state, anti-war and
pro-market

Posts: 29,885
Location: Houston
Joined: Apr 6th, 2008
Gender: Male
Re: Why?
Reply #11 - Jun 30th, 2017 at 11:13am
Print Post  
michiganFats wrote on Jun 30th, 2017 at 10:53am:
The world has always been awash in debt. Today isn't special. Gold isn't a weapon, it's a hedge and not even a very good one because it's value is subject to the whims of the public just like "fiat" currency.


Well, I don't think anyone has said it is a weapon.

The point is that it is the asset that is the best hedge against uncertainty because it has no counter party risk. The lack of counter party risk is what gives it at an advantage over others.

But yes, there is nothing that is not subject to the whims of the public.

Quote:
I don't understand why other counties hedging their bets can be seen as an imminent collapse here or as an economic attack.

I'm not sure anyone has made that argument.

We are looking down the road at long term changes and we are discussing the actions of other countries as a guide to where they see the next monetary regime going.

But nothing about that suggests that this is imminent or that the next monetary regime will be an "attack" on the US.
  

"Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist." J M Keynes

"In the first place, the dichotomy between "theoretical" and "practical" is a false one. In economics, all arguments are theoretical. And, since economics discusses the real world, these theoretical arguments are by their nature "practical" ones as well." M Rothbard
Back to top
 
IP Logged
 
michiganFats
LNF Representative
***
Online

I Love Liberty News Forum!

Posts: 1,379
Joined: Jun 19th, 2017
Re: Why?
Reply #12 - Jun 30th, 2017 at 11:16am
Print Post  
TowardLiberty wrote on Jun 30th, 2017 at 11:13am:
Well, I don't think anyone has said it is a weapon.

The point is that it is the asset that is the best hedge against uncertainty because it has no counter party risk. The lack of counter party risk is what gives it at an advantage over others.

But yes, there is nothing that is not subject to the whims of the public.

I'm not sure anyone has made that argument.

We are looking down the road at long term changes and we are discussing the actions of other countries as a guide to where they see the next monetary regime going.

But nothing about that suggests that this is imminent or that the next monetary regime will be an "attack" on the US.


The impression I got from the OP is that other countries buying gold is somehow a threat to America. Was I wrong about that? Because if I was then I can see how none of this makes sense.
  
Back to top
 
IP Logged
 
TowardLiberty
LNF Speaker
LNF Bunker
*****
Online

anti-state, anti-war and
pro-market

Posts: 29,885
Location: Houston
Joined: Apr 6th, 2008
Gender: Male
Re: Why?
Reply #13 - Jun 30th, 2017 at 1:05pm
Print Post  
michiganFats wrote on Jun 30th, 2017 at 11:16am:
The impression I got from the OP is that other countries buying gold is somehow a threat to America. Was I wrong about that? Because if I was then I can see how none of this makes sense.


Yes, I think that's the wrong way to see this.

It's not a threat or a weapon.

It's a recognition that the future is going to be different than the past and that gold is going to play a role going forward.

These monetary regimes never last indefinitely. They have a relatively short lifespan.
  

"Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist." J M Keynes

"In the first place, the dichotomy between "theoretical" and "practical" is a false one. In economics, all arguments are theoretical. And, since economics discusses the real world, these theoretical arguments are by their nature "practical" ones as well." M Rothbard
Back to top
 
IP Logged
 
michiganFats
LNF Representative
***
Online

I Love Liberty News Forum!

Posts: 1,379
Joined: Jun 19th, 2017
Re: Why?
Reply #14 - Jun 30th, 2017 at 1:16pm
Print Post  
TowardLiberty wrote on Jun 30th, 2017 at 1:05pm:
Yes, I think that's the wrong way to see this.

It's not a threat or a weapon.

It's a recognition that the future is going to be different than the past and that gold is going to play a role going forward.

These monetary regimes never last indefinitely. They have a relatively short lifespan.


Alright, but, why is China, Russia, and India buying gold noteworthy? Why should an American reading this care?
  
Back to top
 
IP Logged
 
TowardLiberty
LNF Speaker
LNF Bunker
*****
Online

anti-state, anti-war and
pro-market

Posts: 29,885
Location: Houston
Joined: Apr 6th, 2008
Gender: Male
Re: Why?
Reply #15 - Jun 30th, 2017 at 1:31pm
Print Post  
michiganFats wrote on Jun 30th, 2017 at 1:16pm:
Alright, but, why is China, Russia, and India buying gold noteworthy? Why should an American reading this care?


It is noteworthy because it is new and gives us a clue as to where things are heading. Why wouldn't Americans care about that?

It has massive implications for the global economy.

I would think people of all nations would be interested.

« Last Edit: Jun 30th, 2017 at 1:55pm by TowardLiberty »  

"Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist." J M Keynes

"In the first place, the dichotomy between "theoretical" and "practical" is a false one. In economics, all arguments are theoretical. And, since economics discusses the real world, these theoretical arguments are by their nature "practical" ones as well." M Rothbard
Back to top
 
IP Logged
 
michiganFats
LNF Representative
***
Online

I Love Liberty News Forum!

Posts: 1,379
Joined: Jun 19th, 2017
Re: Why?
Reply #16 - Jun 30th, 2017 at 1:36pm
Print Post  
TowardLiberty wrote on Jun 30th, 2017 at 1:31pm:
It is noteworthy because it is knew and gives us a clue as to where things are heading. Why wouldn't Americans care about that?

It has massive implications for the global economy.

I would think people of all nations would be interested.



Great. Alright. In what way does it have implications?

I say they are worried about their own economies, not ours.
  
Back to top
 
IP Logged
 
TowardLiberty
LNF Speaker
LNF Bunker
*****
Online

anti-state, anti-war and
pro-market

Posts: 29,885
Location: Houston
Joined: Apr 6th, 2008
Gender: Male
Re: Why?
Reply #17 - Jun 30th, 2017 at 2:07pm
Print Post  
michiganFats wrote on Jun 30th, 2017 at 1:36pm:
Great. Alright. In what way does it have implications?


One of the major gains to the US associated with the present system is tied to global demand for the dollar. Other nations hold dollars to support their banking systems and they also need them to buy energy, as it is sold and priced exclusively in dollars.

There are said to be more dollars in foreign hands than there are inside the US.

If there was a change in our global monetary system and dollars were no longer needed for these reasons, then those dollars would come back to the US in exchange for goods and services here, bidding up prices and creating inflation.

As it stands this outcome is forestalled by the ever present demand for US dollars. That allows the US state to run deficits, and create new dollars to cover them which quickly find demand over seas so that domestic prices are not impacted.

Our living standards are being indirectly subsidized as we export inflation and import real goods and services.

The motivation for other nations, such as India and China, is to have a new monetary regime that is separate from the US dollar. They have been in the position of needing to have a large supply of dollars in order to participate in the dollar based global financial system, but in doing so they have been holding a large supply of something that has continued to depreciate over time.

They want a way out of this trap.

They seek a global monetary system that works for them and not the US elites.

And honestly, from the perspective of an everyday American and not one of the elites, this is good for us too because we too suffer under this dollar based system to the extent we do not have the wealth and wherewithal to make the investments that beat inflation.
Quote:
I say they are worried about their own economies, not ours.


No doubt.
  

"Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist." J M Keynes

"In the first place, the dichotomy between "theoretical" and "practical" is a false one. In economics, all arguments are theoretical. And, since economics discusses the real world, these theoretical arguments are by their nature "practical" ones as well." M Rothbard
Back to top
 
IP Logged
 
michiganFats
LNF Representative
***
Online

I Love Liberty News Forum!

Posts: 1,379
Joined: Jun 19th, 2017
Re: Why?
Reply #18 - Jun 30th, 2017 at 2:58pm
Print Post  
TowardLiberty wrote on Jun 30th, 2017 at 2:07pm:
If there was a change in our global monetary system and dollars were no longer needed for these reasons, then those dollars would come back to the US in exchange for goods and services here, bidding up prices and creating inflation.



Ah, substance. Alright, if there was a change how would those dollars come back? And if they did come back, how would foreign gold holdings be relevant?

You still haven't explained that. If I were you I'd email Zuckerberg and ask him to explain it to me.
  
Back to top
 
IP Logged
 
TowardLiberty
LNF Speaker
LNF Bunker
*****
Online

anti-state, anti-war and
pro-market

Posts: 29,885
Location: Houston
Joined: Apr 6th, 2008
Gender: Male
Re: Why?
Reply #19 - Jun 30th, 2017 at 3:01pm
Print Post  
michiganFats wrote on Jun 30th, 2017 at 2:58pm:
Ah, substance. Alright, if there was a change how would those dollars come back?


How?

In purchases of US exports, real estate, stocks and securities.

Quote:
And if they did come back, how would foreign gold holdings be relevant?


They would be relevant to the reason why they came back- ie there was a new monetary arrangement and those dollars were no longer necessary for foreigners to hold.

  

"Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist." J M Keynes

"In the first place, the dichotomy between "theoretical" and "practical" is a false one. In economics, all arguments are theoretical. And, since economics discusses the real world, these theoretical arguments are by their nature "practical" ones as well." M Rothbard
Back to top
 
IP Logged
 
Page Index Toggle Pages: 1 [2] 3 4 5
Send TopicPrint
 
Liberty News ForumLNF Forums HereEconomics, Financial News › Why?

LNF Home - Political Opinion Page
LNF Forums

Christian Forum - Religion Forum - Sports Forum - Entertainment - House
Military, History - Cooking and Crafts - Creative Writing
Off the Wall News - Science Forum - Tech Gadgets - Financial News - Humor
Bunker - Page 2 - Page 3 - Page 4 - Chat Room





Drudge Report - News Max - Rush Limbaugh - FrontpageMag
Advertise on the LNF - Twitter LNF - LNF Archive - LNF News
LNF Blog
News and Political Links
Political Blogs
Add your website or blog
Political Columnists
Political Humor
News forum posting, privacy policy and member rules