Do exports and imports have an effect on the dollar?

[winston_blade]

I'm talking about back in the 1830's when we were still on a gold standard. What would it matter how much you export or import in relation to how much the dollar is worth?

 

[revolutionist]

I'm not sure I'm absolutely correct on this one, but this is how I understand it.

Exports led to inflation because more specie entered into the system. Imports led to deflation since specie was leaving the country.

 

[Ozwest]

I'm talking about back in the 1830's when we were still on a gold standard. What would it matter how much you export or import in relation to how much the dollar is worth?

Fuck paper, and be a 1830 Pirate.

 

[Ozwest]

Beat me over the head with paper, and I'll crown you with some 1830 sovereigns...

 

[theoakman]

I'm talking about back in the 1830's when we were still on a gold standard. What would it matter how much you export or import in relation to how much the dollar is worth?

international trade was done in gold. It mattered because if you imported way more than you exported, you would have no more gold, and hence, be broke. Spain brought back tonnes of gold from the Americas. They were ridiculously rich. They used it all to consume goods produced by the rest of Europe. Before you know it, they were bankrupt.

 

[Ozwest]

international trade was done in gold. It mattered because if you imported way more than you exported, you would have no more gold, and hence, be broke. Spain brought back tonnes of gold from the Americas. They were ridiculously rich. They used it all to consume goods produced by the rest of Europe. Before you know it, they were bankrupt.

Back in the days before the FED?

 

[Ozwest]

Shiver me Timbers!

 

[theoakman]

Back in the days before the FED?

yes. They were done in gold because no country trusted the other country to not cheat by printing dollars. The Bretton Woods system was designed to essentially make all countries still deal in gold, technically. Because each currency was fixed to the dollar and the dollar was fixed to gold. Well, the US went and cheated anyway and printed dollars during the entire tenure of the Bretton Woods System. Somehow, the US debt is so high that gold would have to be valued near 25k an oz to pay off our debt. It's really amazing the amount of wealth our country has been able to steal just by printing dollars. No time in history has a nation been able to rack up so much debt.

 

[Ozwest]

yes. They were done in gold because no country trusted the other country to not cheat by printing dollars. The Bretton Woods system was designed to essentially make all countries still deal in gold, technically. Because each currency was fixed to the dollar and the dollar was fixed to gold. Well, the US went and cheated anyway and printed dollars during the entire tenure of the Bretton Woods System. Somehow, the US debt is so high that gold would have to be valued near 25k an oz to pay off our debt. It's really amazing the amount of wealth our country has been able to steal just by printing dollars. No time in history has a nation been able to rack up so much debt.

Maybe I should double sock my 5 oz. bars...