Chavez: US dollar is worthless; printing more money won't fix crisis

[Maverick]

Hmm, I'm curious to know that since a nutcase like President Chavez is siding with you what would that really entail?

Please stop embarrassing yourself by trotting out this "guilt-by-association" fallacy.

Even a broken clock is right twice a day. Chavez = broken clock. But guess what? This just happens to be one of those rare occasions where he's right.

 

[SeanEdwards]

Seems rather pointless to withdraw cash from a bank if you're afraid that the currency is going to collapse. The "paper" will be just as worthless in your hands as it will be if it was stored in a bank vault. And there's not much point to be worried about an individual bank collapsing, because the FDIC will just materialize more fiat money as needed to cover deposits.

Now taking your bank deposits and turning them into real tangible assets would make sense if you fear a currency collapse. But there's no need to withdraw cash from the bank for that purpose.

 

[FreeMarketEconomy]

Its kinda ironic that people who say that a depression would not be their fault are the same ones telling people to pull their money out of banks.

 

[DrCap]

It's all about psychology and the lack of confidence

con·fi·dence /ˈkɒnfɪdəns/ Pronunciation Key - Show Spelled Pronunciation[kon-fi-duhns]
–noun
1. full trust; belief in the powers, trustworthiness, or reliability of a person or thing:

Trust is something that is built over time, in repeated interactions between individuals. You trust McDonald's will make you a Big Mac a certain way, you have confidence in their ability to provide that.

Trust is something that can be gradually eroded or can be destroyed rapidly. If McDonald's started making crappier BigMacs with less meat or something, you would gradually trust them less - or come to trust that what they were making was no longer good.

Trust is something that also can be wiped out very quickly, (i.e. a number of e. coli outbreaks in the food industry). That lack of trust spreads quickly and would be difficult to rebuild.

You trust that the paper in your wallet can buy something tomorrow because someone else will trust that they can buy something with it too. It has no foundation, eventually will be sufficiently abused until the trust is gone. The Romans debased their currency too by mixing other metal with silver to fund their wars, they just did it over hundreds of years.

If the rest of the world lost trust in the dollar today it would collapse in hours if not minutes.

Americans' psychology has nothing to do with it because Americans don't realize that their trust is falsely placed.
I'm a shrink, I deal with trust and psychology everyday.

 

[SeanEdwards]

Furthermore, fiat money does not necessarily HAVE to be worthless. It is backed by the faith and credit of the issuing country. What destroys its value is excessive creation. If there existed a responsible state that didn't endlessly inflate the money supply and run up ludicrous deficits, then fiat money could be a perfectly viable form of currency.

 

[RSLudlum]

con·fi·dence /ˈkɒnfɪdəns/ Pronunciation Key - Show Spelled Pronunciation[kon-fi-duhns]
–noun
1. full trust; belief in the powers, trustworthiness, or reliability of a person or thing:

Trust is something that is built over time, in repeated interactions between individuals. You trust McDonald's will make you a Big Mac a certain way, you have confidence in their ability to provide that.

Trust is something that can be gradually eroded or can be destroyed rapidly. If McDonald's started making crappier BigMacs with less meat or something, you would gradually trust them less - or come to trust that what they were making was no longer good.

Trust is something that also can be wiped out very quickly, (i.e. a number of e. coli outbreaks in the food industry). That lack of trust spreads quickly and would be difficult to rebuild.

You trust that the paper in your wallet can buy something tomorrow because someone else will trust that they can buy something with it too. It has no foundation, eventually will be sufficiently abused until the trust is gone. The Romans debased their currency too by mixing other metal with silver to fund their wars, they just did it over hundreds of years.

If the rest of the world lost trust in the dollar today it would collapse in hours if not minutes.

Americans' psychology has nothing to do with it because Americans don't realize that their trust is falsely placed.
I'm a shrink, I deal with trust and psychology everyday.

Hence, WHERE'S THE BEEF!!!!

 

[FrankRep]

Its kinda ironic that people who say that a depression would not be their fault are the same ones telling people to pull their money out of banks.

Don't shift blame. The Federal Reserve and the Fiat money system is directly the blame. Banks shouldn't loan out more money than what they have in reserves.

 

[Bruno]

Don't shift blame. The Federal Reserve and the Fiat money system is directly the blame. Banks shouldn't loan out more money than what they have in reserves.

Don't waste your time with that idiot. His days here are numbered.

 

[JohnMeridith]

Freemarketeconomy has reading comprehension problems. This entire thread he takes posts that are agreeing with a single point Chavez makes and then states if they agree with him on one point they endorse him on everything he does. That is his argument.

 

[micahnelson]

Seems rather pointless to withdraw cash from a bank if you're afraid that the currency is going to collapse. The "paper" will be just as worthless in your hands as it will be if it was stored in a bank vault. And there's not much point to be worried about an individual bank collapsing, because the FDIC will just materialize more fiat money as needed to cover deposits.

Printed dollars will have more value than checkbook money. Gresham's law.

When they start printing more to cover demand, the we might see the collapse of the printed dollar. i imagine a few months of a cash only society in the interim.

 

[Dary]

Seems rather pointless to withdraw cash from a bank if you're afraid that the currency is going to collapse. The "paper" will be just as worthless in your hands as it will be if it was stored in a bank vault.

You could still pay off your existing debt with the collapsed currency.

You’ve just got to get it out of the bank and into your pocket before the banks close and the federal government seizes the remaining FRNs.

 

[dannno]

Freemarketeconomy has reading comprehension problems. This entire thread he takes posts that are agreeing with a single point Chavez makes and then states if they agree with him on one point they endorse him on everything he does. That is his argument.

I am all for free and open debate, but Freemarketeconomy is not only extremely intellectually dishonest, but he will not face the real issues that we are discussing at all.

He is a distraction tornado of propaganda.

 

[aravoth]

Its kinda ironic that people who say that a depression would not be their fault are the same ones telling people to pull their money out of banks.

douche bag