Thought of the day

[Sabin]

The Gold Standard

"The complex mechanisms of the modern world depend as certainly on the faith in money as the structures of the medieval world depended upon faith in God."

- Lewis H. Lapham, author and editor

One of the long-standing myths about modern currency is that it is backed by the U.S. gold supply in Fort Knox. That is, you can trade your greenback dollars to the U.S. government for the equivalent amount of gold bullion at any time.

At one point, this was true of most paper currencies in the world. However, the U.S. took away the government backing of the dollar with an actual gold supply (known as leaving the gold standard) in 1971, and every major international currency has followed suit.

The obvious question is, "Without gold, what does guarantee the value of our money?" The answer is: nothing at all.

The only reason a dollar, or a franc, or a Euro has any value is because we have a stable system in which people are known to accept these pieces of paper in return for something valuable. Or, as Nobel Prize-winning economist Milton Friedman puts it, "the pieces of green paper have value because everybody thinks they have value."

we all except paper money becuase everybody else excepts it and vice versa

[martin88]

The Gold Standard

"The complex mechanisms of the modern world depend as certainly on the faith in money as the structures of the medieval world depended upon faith in God."

- Lewis H. Lapham, author and editor

One of the long-standing myths about modern currency is that it is backed by the U.S. gold supply in Fort Knox. That is, you can trade your greenback dollars to the U.S. government for the equivalent amount of gold bullion at any time.

At one point, this was true of most paper currencies in the world. However, the U.S. took away the government backing of the dollar with an actual gold supply (known as leaving the gold standard) in 1971, and every major international currency has followed suit.

The obvious question is, "Without gold, what does guarantee the value of our money?" The answer is: nothing at all.

The only reason a dollar, or a franc, or a Euro has any value is because we have a stable system in which people are known to accept these pieces of paper in return for something valuable. Or, as Nobel Prize-winning economist Milton Friedman puts it, "the pieces of green paper have value because everybody thinks they have value."

we all except paper money becuase everybody else excepts it and vice versa

Very true.

The Swiss Franc is the only currency that is still fully backed by gold.

[Sabin]

For all of you who an attention spand and would like to learn more follow this link.

It has become evident that most of today are ingnorant of how the global monatary system functions leaving the back door open for us to be decieved. This information is also diregarded in most school systems also, no wonder so may of us don't even know what dollar really is.

--------> http://en.wikipedia.org/wiki/Gold_standard

Edited November 2, 2005 by Sabin Romero

[smallpancake]

I think about this here and there. I mean what is this paper for? Of course it can be traded for something valuble, But why does the person want the paper? To buy something else of course. No one wants the paper itself, Because it obviously doesn't benefit anything. Its value is what matters. Okay, I think we all know that by now.

Is it just me, Or is the whole paper money thing shrinking? Credit Cards, Bank Accounts, Checks, etc. Paper money isn't as popular as it used to be. =O

[Sabin]

Thats probly were that whole "big brother" theory comes in. becuase everything you buy with cards is recordable. Not to mention big box stores shoving thier own brand of cards down our throats. so they steal our gold, gave us paper tokens, now that want to take away the tokens too.

Not to mention also those RFID tags they put in products now to tract you.

The monatary system is actual a scam, thats why the poor get poorer and the rich get richer.

This is my understanding of how the monatary system functions, particulary with the federal reserve.

First off all money in circulation is on loan thats right the money in your pocket is borrowed.

The federal reserve sets a interest rate. Banks then call the feds and ask to borrow a certain amount of cash at that interest rate. The banks then use this money and loan it out to people like

us, people who want loans on credit cards or morgages for property.

So how do the banks make money if the money is fake-----> with real money.

property, gold bullion, and vaulables. Becuase a certain point the feds will increase the rates

and the money in circulation will decrease. Then people lose their jobs and people miss payments

on their morgages and such. Then the banks throw out their rakes and take people's real valuableslike your house which has real value. Then the banks use thies propeties as collateral for the feds and borrow more cash again and do it over and over. so the poor keep gettin poorer and the rich keep gettin more and more power, special big corperations.

So those cards are just one last step for them to get a final strangle hold on us.

Not sure if it set up like this from the begining, but banks have diffently tooken advantage of it.

And certainly denie it if anyone questioned them about this.

heres another site about how its a scam---------> http://www.bibleprophesy.org/silverismoney...ary_System.html

Edited November 4, 2005 by Sabin

[Righty]

I believe anything $20 and under is not backed. I didn't really read the article.

[person123]

this is exactly what karl marx talked about in "das kapital", where money is no longer run by people, money runs them

[smallpancake]

Well I don't really give two shits. Paper still represents a valuable, Therefore it has value for the time being.