User Tag List

First 123

Results 21 to 27 of 27

  1. #21
    Senior Member Lateralus's Avatar
    Join Date
    May 2007
    MBTI
    ENTJ
    Enneagram
    3w4
    Posts
    6,276

    Default

    Quote Originally Posted by Risen View Post
    I also made note of what he said about the gold standard. It would've been more accurate to say that it ended with FDR, but we did bring it back in some form afterward, until Nixon came and completely unpegged from it. So it's not false, since we stopped dealing with gold altogether after Nixon. As for the graph in the vid, it seems to follow the same data presented by the Federal Reserve Bank of St. Louis, which I would hope has reliable data since they are the ones printing money.
    A gold standard implies that you (as an individual) can exchange dollars for gold. That was not the case. Under Bretton Woods, nations held gold in reserve, but citizens could not exchange paper for gold. This allowed the US expand its money supply, which is why I am skeptical of Glenn Beck's graph. He shows a relatively flat money supply all through the 60s and 70s, but that's not what actually happened.

    I'm not arguing against his big picture here, he's correct that the Fed is creating unprecedented amounts of money. I just prefer that everything be factually accurate.
    "We grow up thinking that beliefs are something to be proud of, but they're really nothing but opinions one refuses to reconsider. Beliefs are easy. The stronger your beliefs are, the less open you are to growth and wisdom, because "strength of belief" is only the intensity with which you resist questioning yourself. As soon as you are proud of a belief, as soon as you think it adds something to who you are, then you've made it a part of your ego."

  2. #22
    Member *Strictly_The_Facts*'s Avatar
    Join Date
    Jan 2009
    MBTI
    InTJ
    Enneagram
    5
    Socionics
    LII
    Posts
    69

    Default

    Quote Originally Posted by Anja View Post
    That's interesting, Risen. I did hear the opposite. Wonder who's giving us the news and why it is conflicting. . .
    That would be a good question now wouldn't it..
    If one does not understand a person, one tends to regard him as a fool. -Carl Gustav Jung *I-74* *N-53* *T-95* *J-89*

  3. #23
    Permabanned
    Join Date
    Mar 2008
    MBTI
    ISTP
    Enneagram
    9w8
    Posts
    3,187

    Default

    Quote Originally Posted by Lateralus View Post
    A gold standard implies that you (as an individual) can exchange dollars for gold. That was not the case. Under Bretton Woods, nations held gold in reserve, but citizens could not exchange paper for gold. This allowed the US expand its money supply, which is why I am skeptical of Glenn Beck's graph. He shows a relatively flat money supply all through the 60s and 70s, but that's not what actually happened.

    I'm not arguing against his big picture here, he's correct that the Fed is creating unprecedented amounts of money. I just prefer that everything be factually accurate.
    Well that was mine (and I think his) point; that the currency was BACKED by real gold until that time. Yea, it wasn't a full gold standard after FDR, but the currency still had a real value behind it in gold (or am I wrong?). I think he was referring to that, not the gold standard specifically, which is his fault for using the wrong terminology.

    As for the graph, it fits the Fed's data man :/ .

  4. #24
    Senior Member Lateralus's Avatar
    Join Date
    May 2007
    MBTI
    ENTJ
    Enneagram
    3w4
    Posts
    6,276

    Default

    But the currency wasn't backed by gold. The reserves were only for trade between nations.
    "We grow up thinking that beliefs are something to be proud of, but they're really nothing but opinions one refuses to reconsider. Beliefs are easy. The stronger your beliefs are, the less open you are to growth and wisdom, because "strength of belief" is only the intensity with which you resist questioning yourself. As soon as you are proud of a belief, as soon as you think it adds something to who you are, then you've made it a part of your ego."

  5. #25
    Permabanned
    Join Date
    Mar 2008
    MBTI
    ISTP
    Enneagram
    9w8
    Posts
    3,187

    Default

    Quote Originally Posted by Lateralus View Post
    But the currency wasn't backed by gold. The reserves were only for trade between nations.
    Looking at wikipedia, it seems that during his administration the percentage of gold backing the dollar decreased, and he stopped the trading of dollars for gold directly.

    Nixon Shock - Wikipedia, the free encyclopedia

    In 1971 Nixon unilaterally canceled the Bretton Woods system and stopped the direct convertibility of the United States dollar to gold. The second shock was the 1972 Nixon visit to China that brought a surprising new twist to Cold War diplomacy.

    ................

    By the early 1970s, as the Vietnam War and increased domestic spending accelerated inflation,[1] the United States was running not just a balance of payments deficit but also a trade deficit (for the first time in the 20th century). The crucial turning point was 1970, which saw U.S. gold coverage of the paper dollar deteriorate from 55% to 22%. This, in the view of neoclassical economists, represented the point where holders of the dollar had lost faith in the U.S. ability to cut its budget and trade deficits.

    In 1971, more and more dollars were printed (an increase of 10%)[1] and then sent overseas, to pay for the nation's military expenditures and private investments. In the first six months of 1971, assets for $22 billion fled the United States.[citation needed] In May 1971, inflation-wary West Germany left the Bretton Woods system, unwilling to deflate its own currency to prop up the dollar.[1] In the next three months, the dollar dropped 7.5% against the deutsche mark.[1]

    Because of the excessive printing of paper dollars, and the negative balance of U.S. trade, other nations were increasingly demanding fulfillment of America's "promise to pay". That is, they were demanding gold from the U.S. in exchange for paper dollars. Switzerland traded for $50 million in gold in July.[1] France, in particular, made heavy and repeated demands and acquired large amounts of gold ($191 million)[1] in that manner. On August 5, Congress released a report recommending devaluation of the dollar.[1] As the dollar dropped in comparison to European currencies, on August 9, Switzerland also took its currency from Bretton Woods.[1]

    In response to these events and to polls citing a 73% disapproval of his policies the year before an election,[1] on August 15, 1971, Nixon unilaterally imposed 90-day wage and price controls, a 10% import surcharge, and most importantly "closed the gold window," making the dollar inconvertible to gold directly, except on the open market. Unusually, this decision was made without consulting members of the international monetary system or even with his own State Department, and was soon dubbed the Nixon shock. Some advisers recalled later that more time was spent at Camp David deciding when to make a speech announcing the plan than was actually spent creating the plan.[2] Nixon was afraid to interrupt television viewers watching Bonanza, but he was advised that he must make an announcement before stock markets opened on Monday. Despite the Bonanza pre-emption, the August 15, 1971 speech and the price-control plans were a hit with the public, which felt Nixon was rescuing them from price-gougers and from a foreign-caused exchange crisis.[2][3]

    The surcharge was dropped in December 1971 as part of a general revaluation of major currencies, which were henceforth allowed 2.25 percent devaluations from the agreed exchange rate. But even the more flexible official rates could not be defended against the speculators. By March 1976, all the world's major currencies were floatingin other words, exchange rates were no longer the principal target used by governments to administer monetary policy.
    Then this article puts it this way-


    What Was The Gold Standard?
    A Very Brief History of the Gold Standard
    If you would like to learn about the history of money in detail, there is an excellent site called A Comparative Chronology of Money which details the important places and dates in monetary history. During most of the 1800s the United States was had a bimetallic system of money, however it was essentially on a gold standard as very little silver was traded. A true gold standard came to fruition in 1900 with the passage of the Gold Standard Act. The gold standard effectively came to an end in 1933 when President Franklin D. Roosevelt outlawed private gold ownership (except for the purposes of jewelery). The Bretton Woods System, enacted in 1946 created a system of fixed exchange rates that allowed governments to sell their gold to the United States treasury at the price of $35/ounce. "The Bretton Woods system ended on August 15, 1971, when President Richard Nixon ended trading of gold at the fixed price of $35/ounce. At that point for the first time in history, formal links between the major world currencies and real commodities were severed". The gold standard has not been used in any major economy since that time.

  6. #26
    Senior Member Maabus1999's Avatar
    Join Date
    Aug 2008
    MBTI
    INTJ
    Posts
    528

    Default

    Quote Originally Posted by Athenian200 View Post
    It looks like they're intentionally trying to create inflation. To what end, I know not.
    For one it reduces everyone's overall debt commitment in a fractional sense. However I am not for this due to the other side effects this can cause.

  7. #27
    Permabanned
    Join Date
    Mar 2008
    MBTI
    ISTP
    Enneagram
    9w8
    Posts
    3,187

    Default

    Quote Originally Posted by Maabus1999 View Post
    For one it reduces everyone's overall debt commitment in a fractional sense. However I am not for this due to the other side effects this can cause.
    Side effects akin to what happened to the Wiemar Republic.

    [youtube="aCTufjMGXsc"]Headed Towards Wiemar Republic[/youtube]

Similar Threads

  1. For how much money would you do this for?
    By Such Irony in forum The Bonfire
    Replies: 38
    Last Post: 09-27-2011, 07:05 PM
  2. How far off are we
    By OrangeAppled in forum The Bonfire
    Replies: 11
    Last Post: 09-23-2011, 01:27 AM
  3. [MBTItm] How intense are we talking about here??
    By Wild horses in forum The NF Idyllic (ENFP, INFP, ENFJ, INFJ)
    Replies: 13
    Last Post: 10-30-2008, 03:14 PM
  4. How much are you going to make this week?
    By Lateralus in forum Politics, History, and Current Events
    Replies: 41
    Last Post: 10-15-2008, 08:16 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
Single Sign On provided by vBSSO