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Gold/Silver Standards

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DRLHyper
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Post: #1
Gold/Silver Standards

Not going to lie about this; it sparked off as a private discussion.

But basically: What do you think about Gold/Silver standards? Would the economies of the world be more stable that way? Or does it favours imperialistic practices? (Aka: Larger nations dominating smaller ones)

If I had to say, I would aim to the later. But I am no expert on the field, and as far as I can tell the Gold Standard helped my country [Argentina] maintain a degree of prestige as a "rich economy" for long. My most issue with this is that it is not very sustainable.

05.05.2011 22:09
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Helsworth
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Post: #2
RE: Gold/Silver Standards

DRLHyper Wrote:
Not going to lie about this; it sparked off as a private discussion.

But basically: What do you think about Gold/Silver standards? Would the economies of the world be more stable that way? Or does it favours imperialistic practices? (Aka: Larger nations dominating smaller ones)

If I had to say, I would aim to the later. But I am no expert on the field, and as far as I can tell the Gold Standard helped my country [Argentina] maintain a degree of prestige as a "rich economy" for long. My most issue with this is that it is not very sustainable.

http://www.chomsky.info/talks/20010126.htm

I would advocate for an international fixed exchange rate sytem, ergo a new Bretton Woods.


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05.05.2011 22:36
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OVERSIER
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Post: #3
RE: Gold/Silver Standards

it would kill some nations while others will be better off . Also it would create a lot of wars because stealing gold from one nation for the other will be the only way to increase your currency price by a lot


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05.05.2011 22:41
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RichardAWilson
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Post: #4
RE: Gold/Silver Standards

The Gold Standard was anti-growth and unsustainable. Indeed, even Milton Friedman believed the Gold Standard contributed to the Great-Depression. The same could, though to a lesser degree, be said of the Silver Standard, which is unsustainable.

http://www.federalreserve.gov/boarddocs/...efault.htm

Monetary Aggregates have to be able to mirror growth in the underlying economy. Silver and Gold, which are limited, wouldn't be able to match the growth in today’s economy, which has outgrown those supplies.

I do, however, much like the aforementioned, favor a return to a fixed international exchange rate system, which would restore confidence in the global banking and financial system.

This post was last modified: 12.05.2011 20:58 by RichardAWilson.

12.05.2011 20:50
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Titian
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Post: #5
RE: Gold/Silver Standards

Personally I'm supporting the idea of a one-world gouvernment outlined by me various times in other parts of the forum (I'm afraid not in english Kopfkratz) and therefore one single currency for the whole of the global economy.

However, the global society is still a far way away from such a revolutionary system (especially because of all these nationalists who can't think outside the box/ their borders) so I have to accept the things as they are now. However, I don't like the idea of a gold/silver standard nor do I not not like it. I absolutely CONDEMN the idea.

Nobody can eat gold and silver; i.e. the industrial uses of such metals and therefore their economic value is limited. There is no practical use for them for the individual.
Any currency should solely be based on the upon the production of goods and services it represents. The global markets will then evalutate the currency's system's output' value and adjust it in comparison with the output of other currency systems.

EDIT:

A fixed international exchange rate system is bollocks! This is because exchange rates adjust the value of an currency system to the output of other currency systems.
Example:

Money supply in currency system 1:
5x
Production output in currency system 1 (volume, not measured in currency units):
d

Money supply in currency system 2:
x
Production output in currency system 2:
5d

Exchange rate currency1/currency 2:
2currency1Units for 1 currency2Units

do you see? It doesn't work out and just increases economic inequalities and instability


Just to take advantage of this opportunity to once again drown you in my infinite pool of wisdom:
Any currency is just money and money does NOT exist!!!


"If you grab them by their balls, their hearts and minds will follow." (Yes, Minister)

This post was last modified: 12.05.2011 21:57 by Titian.

12.05.2011 21:51
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Helsworth
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Post: #6
RE: Gold/Silver Standards

A 100% gold/silver standard cannot work. The world can use a gold reference, while a fixed exchange rate system is way better than this chaotic free floating crap. Each country can balance their trade accounts/payments. A currency's worth should be reflected by the real economy, however today that's not the case.
Also one world currency isn't that revolutionary as you'd think and a one world monetary/fiscal system won't solve the problems of third world and developing countries.


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12.05.2011 22:11
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Titian
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Post: #7
RE: Gold/Silver Standards

it's an important part of a bigger solution. Of course just a new currency system can't change anything.


"If you grab them by their balls, their hearts and minds will follow." (Yes, Minister)

12.05.2011 22:17
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DRLHyper
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Post: #8
RE: Gold/Silver Standards

Actually, my solution for the world would be to cut-off international things like the WTO and instead strenghten regional trade blocs. MercoSur, UnaSul & stuff like it merge to creater a more broad, effective organization.

Regional currecies is the key to this strife. To heck with global markets; we should create custom/trade unions which would then trade on the global market.

12.05.2011 22:42
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Helsworth
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Post: #9
RE: Gold/Silver Standards

DRLHyper Wrote:
Actually, my solution for the world would be to cut-off international things like the WTO and instead strenghten regional trade blocs. MercoSur, UnaSul & stuff like it merge to creater a more broad, effective organization.

Regional currecies is the key to this strife. To heck with global markets; we should create custom/trade unions which would then trade on the global market.

Regional trade blocks are a good idea, a lot better than WTO financial and commercial practices. There's also the problem of corruption, the lack of transparency and accountability of central banks to their respective governments and people. Too many investment banks get cheap loans at near 0% interest, money that doesn't exist so they can gamble it away on financial derivatives. Lets stop quantitative easing and giving credit to illegitimate private speculators, then socializing the losses...


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12.05.2011 23:12
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VincentNikolai
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Post: #10
RE: Gold/Silver Standards

Titian Wrote:
Personally I'm supporting the idea of a one-world gouvernment outlined by me various times in other parts of the forum (I'm afraid not in english Kopfkratz) and therefore one single currency for the whole of the global economy.

However, the global society is still a far way away from such a revolutionary system (especially because of all these nationalists who can't think outside the box/ their borders) so I have to accept the things as they are now. However, I don't like the idea of a gold/silver standard nor do I not not like it. I absolutely CONDEMN the idea.

Nobody can eat gold and silver; i.e. the industrial uses of such metals and therefore their economic value is limited. There is no practical use for them for the individual.
Any currency should solely be based on the upon the production of goods and services it represents. The global markets will then evalutate the currency's system's output' value and adjust it in comparison with the output of other currency systems.

EDIT:

A fixed international exchange rate system is bollocks! This is because exchange rates adjust the value of an currency system to the output of other currency systems.
Example:

Money supply in currency system 1:
5x
Production output in currency system 1 (volume, not measured in currency units):
d

Money supply in currency system 2:
x
Production output in currency system 2:
5d

Exchange rate currency1/currency 2:
2currency1Units for 1 currency2Units

do you see? It doesn't work out and just increases economic inequalities and instability


Just to take advantage of this opportunity to once again drown you in my infinite pool of wisdom:
Any currency is just money and money does NOT exist!!!

Wow, never realized we were so politically linked.Kopfkratz

And you expressed it much better than I've been able to thus far... Eh, I agree with Titian.

I also agree with Helsworth and DRL. Honestly, I just believe the world needs a more cohesive and complementary economy which can only be achieved by becoming more of a "whole". The first step would definitely be regional trade blocs. Following that having matured and our aspirations moving to colonializing the last of the final frontiers, a world bloc.


Politics has no relation to morals.
The Prince, Niccolo Machiavelli
The Prince- A dedication and political maneuver by Niccolo Machiavelli to prove his advice's value to the maintenance of the ruling Florentine Medici Political force.

This post was last modified: 13.05.2011 03:27 by VincentNikolai.

13.05.2011 03:25
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