I don't think anything backs our currency. It strikes me as an arbitrary medium that the government prints and citizens use in trade for commodities, things such as labor/real estate or other goods. Businesses do the same things between themselves. Financial institutions are something different altogether. But we all just trade things and the currency is what we have agreed is the medium we'll use.
Think about it, if you went to the government with a wheelbarrow full of cash and asked for whatever was backing it what do you think you'd get?? There's no store of gold somewhere, there's no physical anything worth the value of all the money our Uncles prints to match that value. That's some long ago fantasy. Paper money and worthless change just facilitates the economy and we all have agreed on that.
"Those who would give up essential Liberty, to purchase a little temporary Safety, deserve neither Liberty nor Safety," --- Benjamin Franklin
Per Fekete, the gold standard with real bills worked well from 1815 to 1914 as
it ushered in numerous technological advancements.
Yeah...it was the gold standard that ushered in technological advancements. The things you read on the internet. Lol
.
Nikola Tesla created all of his important inventions before the Federal Reserve existed.
The radio was invented, penicillin was discovered, railroads were built, and the Empire State Building was constructed -
all of these during the Gold Standard era.
Per Fekete, the gold standard with real bills worked well from 1815 to 1914 as
it ushered in numerous technological advancements.
Yeah...it was the gold standard that ushered in technological advancements. The things you read on the internet. Lol
.
Nikola Tesla created all of his important inventions before the Federal Reserve existed.
The radio was invented, penicillin was discovered, railroads were built, and the Empire State Building was constructed -
all of these during the Gold Standard era.
.
Well yes...obviously it was because we were in a gold standard!!! LOL
None of that would have happened if not for the gold standard!!
Per Fekete, the gold standard with real bills worked well from 1815 to 1914 as
it ushered in numerous technological advancements.
Yeah...it was the gold standard that ushered in technological advancements. The things you read on the internet. Lol
.
Nikola Tesla created all of his important inventions before the Federal Reserve existed.
The radio was invented, penicillin was discovered, railroads were built, and the Empire State Building was constructed -
all of these during the Gold Standard era.
.
Well yes...obviously it was because we were in a gold standard!!! LOL
None of that would have happened if not for the gold standard!!
Hahaha
.
You would have us believe the lie that the existence of a Gold Standard PREVENTS all technological advancements.
Per Fekete, the gold standard with real bills worked well from 1815 to 1914 as
it ushered in numerous technological advancements.
Yeah...it was the gold standard that ushered in technological advancements. The things you read on the internet. Lol
.
Nikola Tesla created all of his important inventions before the Federal Reserve existed.
The radio was invented, penicillin was discovered, railroads were built, and the Empire State Building was constructed -
all of these during the Gold Standard era.
.
Well yes...obviously it was because we were in a gold standard!!! LOL
None of that would have happened if not for the gold standard!!
Hahaha
.
You would have us believe the lie that the existence of a Gold Standard PREVENTS all technological advancements.
.
You would have us believe the LIE that the existence of a gold stand is the reason for technological advances.
Per Fekete, the gold standard with real bills worked well from 1815 to 1914 as
it ushered in numerous technological advancements.
Yeah...it was the gold standard that ushered in technological advancements. The things you read on the internet. Lol
.
Nikola Tesla created all of his important inventions before the Federal Reserve existed.
The radio was invented, penicillin was discovered, railroads were built, and the Empire State Building was constructed -
all of these during the Gold Standard era.
.
Well yes...obviously it was because we were in a gold standard!!! LOL
None of that would have happened if not for the gold standard!!
Hahaha
.
You would have us believe the lie that the existence of a Gold Standard PREVENTS all technological advancements.
.
You would have us believe the LIE that the existence of a gold stand is the reason for technological advances.
My comment is more accurate.
.
No.
A Gold Standard (or similar) that is actually followed will result in a better quality of life (on average) compared to a debt-based financial system.
@Maywood said:
Think about it, if you went to the government with a wheelbarrow full of cash and asked for whatever was backing >it what do you think you'd get?? There's no store of gold somewhere, there's no physical anything worth the value of >all the money our Uncles prints to match that value. That's some long ago fantasy. Paper money and worthless >change just facilitates the economy and we all have agreed on that.
The dollar is the global reserve financial currency.
The dollar is used on 90% of all FX transactions.
The dollar is used by foreigners to buy American real estate....stocks....or bonds.
The dollar is used to purchase goods and services.
Using a gold bar to buy stocks or a head of lettuce is not practical.
@dcarr said:
A Gold Standard (or similar) that is actually followed will result in a better quality of life (on average) compared to a >debt-based financial system.
Sorry, not the experience of the modern economic world. I wish it were so....I'm fascinated by the Gold Standard and have studied and read about it for 45 years. But it just 'aint so.
A modern, functioning economy will be at its best with a flexible currency and a very low rate of inflation. The cost to maintain a fixed price level over decades or centuries is exorbitant and the gains illusory.
Per Fekete, the gold standard with real bills worked well from 1815 to 1914 as
it ushered in numerous technological advancements.
Yeah...it was the gold standard that ushered in technological advancements. The things you read on the internet. Lol
.
Nikola Tesla created all of his important inventions before the Federal Reserve existed.
The radio was invented, penicillin was discovered, railroads were built, and the Empire State Building was constructed -
all of these during the Gold Standard era.
.
Well yes...obviously it was because we were in a gold standard!!! LOL
None of that would have happened if not for the gold standard!!
Hahaha
.
You would have us believe the lie that the existence of a Gold Standard PREVENTS all technological advancements.
.
You would have us believe the LIE that the existence of a gold stand is the reason for technological advances.
My comment is more accurate.
.
No.
A Gold Standard (or similar) that is actually followed will result in a better quality of life (on average) compared to a debt-based financial system.
.
That's your opinion, which is unsubstantiated by any any facts.
You are free to have an opinion though. God Bless America.
Concerning Silver, History will answer most questions about these abrupt and extreme run ups and it has nothing to do with industrial demand. It has to do with manipulation. Just an opinion of a person who started hoarding silver when it was under or close to $5 an ounce
@al410 said:
Concerning Silver, History will answer most questions about these abrupt and extreme run ups and it has nothing to do with industrial demand. It has to do with manipulation. Just an opinion of a person who started hoarding silver when it was under or close to $5 an ounce
JMO
Al
FOMO (fear of missing out) is the cause of the extreme run-up. Taking profits is the cause of the abrupt reversal. As before fundamentals will again light the fuse, just a matter of time.
When gold and silver move together, it signals the coming end of fiat money.
Per Fekete, the gold standard with real bills worked well from 1815 to 1914 as
it ushered in numerous technological advancements.
Yeah...it was the gold standard that ushered in technological advancements. The things you read on the internet. Lol
.
Nikola Tesla created all of his important inventions before the Federal Reserve existed.
The radio was invented, penicillin was discovered, railroads were built, and the Empire State Building was constructed -
all of these during the Gold Standard era.
.
Well yes...obviously it was because we were in a gold standard!!! LOL
None of that would have happened if not for the gold standard!!
Hahaha
.
You would have us believe the lie that the existence of a Gold Standard PREVENTS all technological advancements.
.
You would have us believe the LIE that the existence of a gold stand is the reason for technological advances.
My comment is more accurate.
.
No.
A Gold Standard (or similar) that is actually followed will result in a better quality of life (on average) compared to a debt-based financial system.
.
That's your opinion, which is unsubstantiated by any any facts.
You are free to have an opinion though. God Bless America.
.
Here is a FACT for you:
The wide availability of fiat credit for mortgages has caused buyers to bid up the cost of housing.
Now, a typical buyer, over 15 or 30 years, will pay 2, 3, or even 4 times the original price of the house in interest.
That is quite a hit to the living standard for mortgagees.
Even a person paying "cash" for a house has to pay more to outbid people with a bunch of credit in their pocket.
Both spouses have to work so as to be able to pay. It didn't used to be that way.
Substitute "student loans" for "mortgages" and "college" for "housing", and the story is the same.
Per Fekete, the gold standard with real bills worked well from 1815 to 1914 as
it ushered in numerous technological advancements.
Yeah...it was the gold standard that ushered in technological advancements. The things you read on the internet. Lol
.
Nikola Tesla created all of his important inventions before the Federal Reserve existed.
The radio was invented, penicillin was discovered, railroads were built, and the Empire State Building was constructed -
all of these during the Gold Standard era.
.
Well yes...obviously it was because we were in a gold standard!!! LOL
None of that would have happened if not for the gold standard!!
Hahaha
.
You would have us believe the lie that the existence of a Gold Standard PREVENTS all technological advancements.
.
You would have us believe the LIE that the existence of a gold stand is the reason for technological advances.
My comment is more accurate.
.
No.
A Gold Standard (or similar) that is actually followed will result in a better quality of life (on average) compared to a debt-based financial system.
.
That's your opinion, which is unsubstantiated by any any facts.
You are free to have an opinion though. God Bless America.
.
Here is a FACT for you:
The wide availability of fiat credit for mortgages has caused buyers to bid up the cost of housing.
Now, a typical buyer, over 15 or 30 years, will pay 2, 3, or even 4 times the original price of the house in interest.
That is quite a hit to the living standard for mortgagees.
Even a person paying "cash" for a house has to pay more to outbid people with a bunch of credit in their pocket.
Both spouses have to work so as to be able to pay. It didn't used to be that way.
Substitute "student loans" for "mortgages" and "college" for "housing", and the story is the same.
.
I had a 30-year mortgage, refi'd to a 15 after 2 years and had it paid in full in just over 6 years total. Now that's a FACT.
The problem I see with the living standard today is people have just become lazy. As they say, put in a bit of work and reap the rewards. RGDS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
Retiring at 55, what day is today?
Per Fekete, the gold standard with real bills worked well from 1815 to 1914 as
it ushered in numerous technological advancements.
Yeah...it was the gold standard that ushered in technological advancements. The things you read on the internet. Lol
.
Nikola Tesla created all of his important inventions before the Federal Reserve existed.
The radio was invented, penicillin was discovered, railroads were built, and the Empire State Building was constructed -
all of these during the Gold Standard era.
.
Well yes...obviously it was because we were in a gold standard!!! LOL
None of that would have happened if not for the gold standard!!
Hahaha
.
You would have us believe the lie that the existence of a Gold Standard PREVENTS all technological advancements.
.
You would have us believe the LIE that the existence of a gold stand is the reason for technological advances.
My comment is more accurate.
.
No.
A Gold Standard (or similar) that is actually followed will result in a better quality of life (on average) compared to a debt-based financial system.
.
That's your opinion, which is unsubstantiated by any any facts.
You are free to have an opinion though. God Bless America.
.
Here is a FACT for you:
The wide availability of fiat credit for mortgages has caused buyers to bid up the cost of housing.
Now, a typical buyer, over 15 or 30 years, will pay 2, 3, or even 4 times the original price of the house in interest.
That is quite a hit to the living standard for mortgagees.
Even a person paying "cash" for a house has to pay more to outbid people with a bunch of credit in their pocket.
Both spouses have to work so as to be able to pay. It didn't used to be that way.
Substitute "student loans" for "mortgages" and "college" for "housing", and the story is the same.
And looky more....1798...bank credit...hmmm..it seems folk took on debt during a gold standard and paid 8%!!
Also, in your flawed example, you state the mortgage borrowers paid 2-4x the price of the house, yet fail to mention the price of the house went up 2-4x (usually more).
This thread is just another example of the never-ending human struggle to determine the "correct" answers to unanswerable questions. It does get somewhat tiresome after a while. Keep in mind the old adage: if all the economists in the world were laid end to end, they wouldn't reach a conclusion.
@al410 said:
Concerning Silver, History will answer most questions about these abrupt and extreme run ups and it has nothing >to do with industrial demand. It has to do with manipulation. Just an opinion of a person who started hoarding >silver when it was under or close to $5 an ounce
It's simply a few big players -- including retail momentum players -- acting at the same time. China has been propping up oil prices; I would not be shocked to find out that they are building up silver inventories to head off any future embargo if they engage in military action like Russia in Ukraine.
Per Fekete, the gold standard with real bills worked well from 1815 to 1914 as
it ushered in numerous technological advancements.
Yeah...it was the gold standard that ushered in technological advancements. The things you read on the internet. Lol
.
Nikola Tesla created all of his important inventions before the Federal Reserve existed.
The radio was invented, penicillin was discovered, railroads were built, and the Empire State Building was constructed -
all of these during the Gold Standard era.
.
Well yes...obviously it was because we were in a gold standard!!! LOL
None of that would have happened if not for the gold standard!!
Hahaha
.
You would have us believe the lie that the existence of a Gold Standard PREVENTS all technological advancements.
.
You would have us believe the LIE that the existence of a gold stand is the reason for technological advances.
My comment is more accurate.
.
No.
A Gold Standard (or similar) that is actually followed will result in a better quality of life (on average) compared to a debt-based financial system.
.
That's your opinion, which is unsubstantiated by any any facts.
You are free to have an opinion though. God Bless America.
.
Here is a FACT for you:
The wide availability of fiat credit for mortgages has caused buyers to bid up the cost of housing.
Now, a typical buyer, over 15 or 30 years, will pay 2, 3, or even 4 times the original price of the house in interest.
That is quite a hit to the living standard for mortgagees.
Even a person paying "cash" for a house has to pay more to outbid people with a bunch of credit in their pocket.
Both spouses have to work so as to be able to pay. It didn't used to be that way.
Substitute "student loans" for "mortgages" and "college" for "housing", and the story is the same.
And looky more....1798...bank credit...hmmm..it seems folk took on debt during a gold standard and paid 8%!!
Also, in your flawed example, you state the mortgage borrowers paid 2-4x the price of the house, yet fail to mention the price of the house went up 2-4x (usually more).
So tell us again how the gold standard invented the light bulb and penicillin.
Me thinks you just grumpy.
.
The value of the house may have gone up 2x, 3x, or 4x, but so did the cost of everything else (due to inflation).
When the quantity of money is limited by the Gold Standard (or similar), naturally interest rates are going to be higher because if you lend gold to someone and they don't pay it back, it is very difficult to replace that gold. But with fiat currency,
if you don't get it back you can just issue more of it.
High interest rates discourage people from taking on debt. There is way too much debt in the system now. With the general population leveling off, this is going to cause problems in servicing that debt. There just isn't enough new people coming in to the economy that are willing to take on new debt and service that debt to support the existing structures.
You falsely make it sound like capital formation can not occur with a Gold standard. It can, and did.
Per Fekete, the gold standard with real bills worked well from 1815 to 1914 as
it ushered in numerous technological advancements.
Yeah...it was the gold standard that ushered in technological advancements. The things you read on the internet. Lol
.
Nikola Tesla created all of his important inventions before the Federal Reserve existed.
The radio was invented, penicillin was discovered, railroads were built, and the Empire State Building was constructed -
all of these during the Gold Standard era.
.
Well yes...obviously it was because we were in a gold standard!!! LOL
None of that would have happened if not for the gold standard!!
Hahaha
.
You would have us believe the lie that the existence of a Gold Standard PREVENTS all technological advancements.
.
You would have us believe the LIE that the existence of a gold stand is the reason for technological advances.
My comment is more accurate.
.
No.
A Gold Standard (or similar) that is actually followed will result in a better quality of life (on average) compared to a debt-based financial system.
.
That's your opinion, which is unsubstantiated by any any facts.
You are free to have an opinion though. God Bless America.
.
Here is a FACT for you:
The wide availability of fiat credit for mortgages has caused buyers to bid up the cost of housing.
Now, a typical buyer, over 15 or 30 years, will pay 2, 3, or even 4 times the original price of the house in interest.
That is quite a hit to the living standard for mortgagees.
Even a person paying "cash" for a house has to pay more to outbid people with a bunch of credit in their pocket.
Both spouses have to work so as to be able to pay. It didn't used to be that way.
Substitute "student loans" for "mortgages" and "college" for "housing", and the story is the same.
And looky more....1798...bank credit...hmmm..it seems folk took on debt during a gold standard and paid 8%!!
Also, in your flawed example, you state the mortgage borrowers paid 2-4x the price of the house, yet fail to mention the price of the house went up 2-4x (usually more).
So tell us again how the gold standard invented the light bulb and penicillin.
Me thinks you just grumpy.
.
The value of the house may have gone up 2x, 3x, or 4x, but so did the cost of everything else (due to inflation).
When the quantity of money is limited by the Gold Standard (or similar), naturally interest rates are going to be higher because if you lend gold to someone and they don't pay it back, it is very difficult to replace that gold. But with fiat currency,
if you don't get it back you can just issue more of it.
High interest rates discourage people from taking on debt. There is way too much debt in the system now. With the general population leveling off, this is going to cause problems in servicing that debt. There just isn't enough new people coming in to the economy that are willing to take on new debt and service that debt to support the existing structures.
You falsely make it sound like capital formation can not occur with a Gold standard. It can, and did.
.
I never said anything about capital formation. But you said the gold standard created light bulbs and penicillin and was responsible for many other inventions.
Those inventions would have occurred if we were on a peanut butter standard.
Stick with tokens. I hear someone wants to place an order.
Per Fekete, the gold standard with real bills worked well from 1815 to 1914 as
it ushered in numerous technological advancements.
Yeah...it was the gold standard that ushered in technological advancements. The things you read on the internet. Lol
.
Nikola Tesla created all of his important inventions before the Federal Reserve existed.
The radio was invented, penicillin was discovered, railroads were built, and the Empire State Building was constructed -
all of these during the Gold Standard era.
.
Well yes...obviously it was because we were in a gold standard!!! LOL
None of that would have happened if not for the gold standard!!
Hahaha
.
You would have us believe the lie that the existence of a Gold Standard PREVENTS all technological advancements.
.
You would have us believe the LIE that the existence of a gold stand is the reason for technological advances.
My comment is more accurate.
.
No.
A Gold Standard (or similar) that is actually followed will result in a better quality of life (on average) compared to a debt-based financial system.
.
That's your opinion, which is unsubstantiated by any any facts.
You are free to have an opinion though. God Bless America.
.
Here is a FACT for you:
The wide availability of fiat credit for mortgages has caused buyers to bid up the cost of housing.
Now, a typical buyer, over 15 or 30 years, will pay 2, 3, or even 4 times the original price of the house in interest.
That is quite a hit to the living standard for mortgagees.
Even a person paying "cash" for a house has to pay more to outbid people with a bunch of credit in their pocket.
Both spouses have to work so as to be able to pay. It didn't used to be that way.
Substitute "student loans" for "mortgages" and "college" for "housing", and the story is the same.
And looky more....1798...bank credit...hmmm..it seems folk took on debt during a gold standard and paid 8%!!
Also, in your flawed example, you state the mortgage borrowers paid 2-4x the price of the house, yet fail to mention the price of the house went up 2-4x (usually more).
So tell us again how the gold standard invented the light bulb and penicillin.
Me thinks you just grumpy.
.
The value of the house may have gone up 2x, 3x, or 4x, but so did the cost of everything else (due to inflation).
When the quantity of money is limited by the Gold Standard (or similar), naturally interest rates are going to be higher because if you lend gold to someone and they don't pay it back, it is very difficult to replace that gold. But with fiat currency,
if you don't get it back you can just issue more of it.
High interest rates discourage people from taking on debt. There is way too much debt in the system now. With the general population leveling off, this is going to cause problems in servicing that debt. There just isn't enough new people coming in to the economy that are willing to take on new debt and service that debt to support the existing structures.
You falsely make it sound like capital formation can not occur with a Gold standard. It can, and did.
.
I never said anything about capital formation. But you said the gold standard created light bulbs and penicillin and was responsible for many other inventions.
Those inventions would have occurred if we were on a peanut butter standard.
Stick with tokens. I hear someone wants to place an order.
.
I don't care that you didn't write anything about "capital formation". It is pertinent to the discussion.
Capital formation is what it takes to establish a large successful company. Many such companies started during the Gold Standard era.
I never said (or wrote) any such thing that the Gold Standard created light bulbs or penicillin.
I stated that technological advancements occurred during a Gold Standard. There is a difference.
PS:
You seem to be in need of a history lesson. Nikola Tesla invented AC (Alternating Current). Thomas Edison invented the light bulb. I mentioned Tesla, but I never wrote anything about Edison or the light bulb.
@jmski52 said: When the so-called "backwardation" had spot 50c higher than front month futures? Those are rounding errors.
Explain why lease rates went to 8% when the cash market was in backwardation.
Free market.
Maybe you explain what lease rates would have to do with spot and futures prices? Did lease rates drive spot or futures? Did spot or futures drive lease rates? Dino lease rates have anything to at all with spot or futures?
Maybe you explain what lease rates would have to do with spot and futures prices? Did lease rates drive spot or futures? Did spot or futures drive lease rates? Dino lease rates have anything to at all with spot or futures?
Why should I jump through hoops to educate you when you already know?
Q: Are You Printing Money? Bernanke: Not Literally
Maybe you explain what lease rates would have to do with spot and futures prices? Did lease rates drive spot or futures? Did spot or futures drive lease rates? Dino lease rates have anything to at all with spot or futures?
Why should I jump through hoops to educate you when you already know?
I thought maybe you'd like to share with those on the forum that may not know.
China is still on holiday for the next week, so only the paper market is available to set prices.
Paper always sets prices, even derry has stated so.
paper is suddenly losing price control, march will be the make are break indicator
Is that why dealers are offering larger discounts?
Dealers have to offer discounts because our country has 3rd world ability to refine and smelt. Dealers have nowhere to go with it because we suck at that critical link in the chain.
Dealers have to offer discounts because our country has 3rd world ability to refine and smelt. Dealers have nowhere to go with it because we suck at that critical link in the chain.
If a market existed outside of selling to refineries, the capacity of domestic refiners would be irrelevant. Dealers are offering discounts because sellers outnumber buyers.
Dealers have to offer discounts because our country has 3rd world ability to refine and smelt. Dealers have nowhere to go with it because we suck at that critical link in the chain.
If a market existed outside of selling to refineries, the capacity of domestic refiners would be irrelevant. Dealers are offering discounts because sellers outnumber buyers.
Yes, exactly. And the discount has been increasing.
Dealers have to offer discounts because our country has 3rd world ability to refine and smelt. Dealers have nowhere to go with it because we suck at that critical link in the chain.
If a market existed outside of selling to refineries, the capacity of domestic refiners would be irrelevant. Dealers are offering discounts because sellers outnumber buyers.
Smelting and the lack of capacity for it here is a factor.
Dealers have to offer discounts because our country has 3rd world ability to refine and smelt. Dealers have nowhere to go with it because we suck at that critical link in the chain.
If a market existed outside of selling to refineries, the capacity of domestic refiners would be irrelevant. Dealers are offering discounts because sellers outnumber buyers.
Smelting and the lack of capacity for it here is a factor.
Lack of smelting has most likely allowed silver to reach a higher price than otherwise.
Comments
I don't think anything backs our currency. It strikes me as an arbitrary medium that the government prints and citizens use in trade for commodities, things such as labor/real estate or other goods. Businesses do the same things between themselves. Financial institutions are something different altogether. But we all just trade things and the currency is what we have agreed is the medium we'll use.
Think about it, if you went to the government with a wheelbarrow full of cash and asked for whatever was backing it what do you think you'd get?? There's no store of gold somewhere, there's no physical anything worth the value of all the money our Uncles prints to match that value. That's some long ago fantasy. Paper money and worthless change just facilitates the economy and we all have agreed on that.
"Those who would give up essential Liberty, to purchase a little temporary Safety, deserve neither Liberty nor Safety," --- Benjamin Franklin
Per Fekete, the gold standard with real bills worked well from 1815 to 1914 as
Yeah...it was the gold standard that ushered in technological advancements. The things you read on the internet. Lol
Knowledge is the enemy of fear
.
Nikola Tesla created all of his important inventions before the Federal Reserve existed.
The radio was invented, penicillin was discovered, railroads were built, and the Empire State Building was constructed -
all of these during the Gold Standard era.
.
Well yes...obviously it was because we were in a gold standard!!! LOL
None of that would have happened if not for the gold standard!!
Hahaha
Knowledge is the enemy of fear
.
You would have us believe the lie that the existence of a Gold Standard PREVENTS all technological advancements.
.
You would have us believe the LIE that the existence of a gold stand is the reason for technological advances.
My comment is more accurate.
Knowledge is the enemy of fear
.
No.
A Gold Standard (or similar) that is actually followed will result in a better quality of life (on average) compared to a debt-based financial system.
.
The dollar is the global reserve financial currency.
The dollar is used on 90% of all FX transactions.
The dollar is used by foreigners to buy American real estate....stocks....or bonds.
The dollar is used to purchase goods and services.
Using a gold bar to buy stocks or a head of lettuce is not practical.
Sorry, not the experience of the modern economic world. I wish it were so....I'm fascinated by the Gold Standard and have studied and read about it for 45 years. But it just 'aint so.
A modern, functioning economy will be at its best with a flexible currency and a very low rate of inflation. The cost to maintain a fixed price level over decades or centuries is exorbitant and the gains illusory.
That's your opinion, which is unsubstantiated by any any facts.
You are free to have an opinion though. God Bless America.
Knowledge is the enemy of fear
Concerning Silver, History will answer most questions about these abrupt and extreme run ups and it has nothing to do with industrial demand. It has to do with manipulation. Just an opinion of a person who started hoarding silver when it was under or close to $5 an ounce
JMO
Al
Guess again.
When gold and silver move together, it signals the coming end of fiat money.
FOMO (fear of missing out) is the cause of the extreme run-up. Taking profits is the cause of the abrupt reversal. As before fundamentals will again light the fuse, just a matter of time.
When gold and silver move together, it signals the coming end of fiat money.
.
Here is a FACT for you:
The wide availability of fiat credit for mortgages has caused buyers to bid up the cost of housing.
Now, a typical buyer, over 15 or 30 years, will pay 2, 3, or even 4 times the original price of the house in interest.
That is quite a hit to the living standard for mortgagees.
Even a person paying "cash" for a house has to pay more to outbid people with a bunch of credit in their pocket.
Both spouses have to work so as to be able to pay. It didn't used to be that way.
Substitute "student loans" for "mortgages" and "college" for "housing", and the story is the same.
.
I had a 30-year mortgage, refi'd to a 15 after 2 years and had it paid in full in just over 6 years total. Now that's a FACT.
The problem I see with the living standard today is people have just become lazy. As they say, put in a bit of work and reap the rewards. RGDS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
Retiring at 55, what day is today?
Historical interest rates. Oh wow, looky see. Interest rates at 4, 6, 8% pre-1900.
And looky more....1798...bank credit...hmmm..it seems folk took on debt during a gold standard and paid 8%!!
Also, in your flawed example, you state the mortgage borrowers paid 2-4x the price of the house, yet fail to mention the price of the house went up 2-4x (usually more).
https://advisor.visualcapitalist.com/us-interest-rates/
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So tell us again how the gold standard invented the light bulb and penicillin.
Me thinks you just grumpy.
Knowledge is the enemy of fear
This thread is just another example of the never-ending human struggle to determine the "correct" answers to unanswerable questions. It does get somewhat tiresome after a while. Keep in mind the old adage: if all the economists in the world were laid end to end, they wouldn't reach a conclusion.
Coinlearner, Ahrensdad, Nolawyer, RG, coinlieutenant, Yorkshireman, lordmarcovan, Soldi, masscrew, JimTyler, Relaxn, jclovescoins, justindan, doubleeagle07
Now listen boy, I'm tryin' to teach you sumthin' . . . . that ain't an optical illusion, it only looks like an optical illusion.
My mind reader refuses to charge me. . . . . . .
It's simply a few big players -- including retail momentum players -- acting at the same time. China has been propping up oil prices; I would not be shocked to find out that they are building up silver inventories to head off any future embargo if they engage in military action like Russia in Ukraine.
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The value of the house may have gone up 2x, 3x, or 4x, but so did the cost of everything else (due to inflation).
When the quantity of money is limited by the Gold Standard (or similar), naturally interest rates are going to be higher because if you lend gold to someone and they don't pay it back, it is very difficult to replace that gold. But with fiat currency,
if you don't get it back you can just issue more of it.
High interest rates discourage people from taking on debt. There is way too much debt in the system now. With the general population leveling off, this is going to cause problems in servicing that debt. There just isn't enough new people coming in to the economy that are willing to take on new debt and service that debt to support the existing structures.
You falsely make it sound like capital formation can not occur with a Gold standard. It can, and did.
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I never said anything about capital formation. But you said the gold standard created light bulbs and penicillin and was responsible for many other inventions.
Those inventions would have occurred if we were on a peanut butter standard.
Stick with tokens. I hear someone wants to place an order.
Knowledge is the enemy of fear
Those inventions would have occurred if we were on a peanut butter standard.
I bet not, but if you want to trade my jar of Crunchy Skippy peanut butter for your 1/4 oz. gold eagle, I'm in.
Stick with tokens. I hear someone wants to place an order.
D. Carr has more class than that. A lot more.
I knew it would happen.
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I don't care that you didn't write anything about "capital formation". It is pertinent to the discussion.
Capital formation is what it takes to establish a large successful company. Many such companies started during the Gold Standard era.
I never said (or wrote) any such thing that the Gold Standard created light bulbs or penicillin.
I stated that technological advancements occurred during a Gold Standard. There is a difference.
PS:
You seem to be in need of a history lesson. Nikola Tesla invented AC (Alternating Current). Thomas Edison invented the light bulb. I mentioned Tesla, but I never wrote anything about Edison or the light bulb.
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So you actually think that humans would not have created railroads, light bulbs and penicillin?
How did we ever grow from being cavemen? Perhaps some of us have not.
Knowledge is the enemy of fear
So you actually think that humans would not have created railroads, light bulbs and penicillin?
That's funny. I don't remember implying that.
I knew it would happen.
what's this got to do with 250 silver by year end?
bicker bicker bicker. SSDD over and over and over again
what's this got to do with 250 silver by year end?
It's not going to $40. Get over it.
I knew it would happen.
another big hit soon, once again time to shake the tree
When gold and silver move together, it signals the coming end of fiat money.
Please explain.
COPPER is gutter !
Please explain.
China is still on holiday for the next week, so only the paper market is available to set prices.
I knew it would happen.
spot market is open
.> @jmski52 said:
Paper always sets prices, even derry has stated so.
Knowledge is the enemy of fear
there was a spot silver squeeze where futures did not set spot
There was? When the so-called "backwardation" had spot 50c higher than front month futures? Those are rounding errors.
Knowledge is the enemy of fear
When the so-called "backwardation" had spot 50c higher than front month futures? Those are rounding errors.
Explain why lease rates went to 8% when the cash market was in backwardation.
I knew it would happen.
Free market.
Maybe you explain what lease rates would have to do with spot and futures prices? Did lease rates drive spot or futures? Did spot or futures drive lease rates? Dino lease rates have anything to at all with spot or futures?
Knowledge is the enemy of fear
KITCO has the Friday close at 84.62 More extreme volatility.
COPPER is gutter !
Maybe you explain what lease rates would have to do with spot and futures prices? Did lease rates drive spot or futures? Did spot or futures drive lease rates? Dino lease rates have anything to at all with spot or futures?
Why should I jump through hoops to educate you when you already know?
I knew it would happen.
.> @jmski52 said:
I thought maybe you'd like to share with those on the forum that may not know.
Knowledge is the enemy of fear
paper is suddenly losing price control, march will be the make are break indicator
When gold and silver move together, it signals the coming end of fiat money.
Is that why dealers are offering larger discounts?
Knowledge is the enemy of fear
Dealers have to offer discounts because our country has 3rd world ability to refine and smelt. Dealers have nowhere to go with it because we suck at that critical link in the chain.
COPPER is gutter !
If a market existed outside of selling to refineries, the capacity of domestic refiners would be irrelevant. Dealers are offering discounts because sellers outnumber buyers.
their inventory stalled as price rapidly dropped
When gold and silver move together, it signals the coming end of fiat money.
Yes, exactly. And the discount has been increasing.
Knowledge is the enemy of fear
Can you explain this "losing control"? Seems paper price has increased while physical has decreased. Is that what you mean?
Knowledge is the enemy of fear
Smelting and the lack of capacity for it here is a factor.
COPPER is gutter !
Lack of smelting has most likely allowed silver to reach a higher price than otherwise.
Knowledge is the enemy of fear
I might consider that if the rest of the world wasn't involved too.
COPPER is gutter !
Are smelters in Europe backed up also?
Knowledge is the enemy of fear