Trump Meeting with John Allison: Wants to abolish Federal Reserve and return to Gold Standard

[Zippyjuan]

Money is a medium of exchange. It is whatever people decide to use and has whatever value the market gives it.

 

[Dr.3D]

Money is a medium of exchange. It is whatever people decide to use and has whatever value the market gives it.

Well, paper isn't a very good medium of exchange as it doesn't have much value. Ask the people of Zimbabwe.

 

[brushfire]

That is fascinating! Sometimes the off-topic posts are the most interesting.

Wow, 7-1/2 cents -- just think of the long-term ramifications. You could price things in half cents. How annoying! Or would it be convenient? With sound money, it probably actually would be convenient.

Price Optimization: http://www.retailtouchpoints.com/fe...etailer-paving-the-way-for-price-optimization

 

[Zippyjuan]

Well, paper isn't a very good medium of exchange as it doesn't have much value. Ask the people of Zimbabwe.

What do they use instead now? US dollars.

 

[Dr.3D]

What do they use instead now? US dollars.

The real question is, why did their paper become worthless?

 

[Krugminator2]

Well, paper isn't a very good medium of exchange as it doesn't have much value. Ask the people of Zimbabwe.

The real question is, why did their paper become worthless?

Name one capitalistic or semi-capitalistic country that has had hyperinflation which wasn't on the losing end of a war. Zimababwe elected a kleptocrat who took land away from all of the wealthy in the country and the people with money had to figure out how to get their wealth out of the country. It just doesn't happen because Ben Bernanke lowers interest rates a quarter of a point.

Hyperinflation is almost impossible in a market economy. Japan has proven that you really have to try to ruin a currency and even they haven't been able to do it.

 

[Dr.3D]

Name one capitalistic or semi-capitalistic country that has had hyperinflation which wasn't on the losing end of a war. Zimababwe elected a kleptocrat who took land away from all of the wealthy in the country and the people with money had to figure out how to get their wealth out of the country. It just doesn't happen because Ben Bernanke lowers interest rates a quarter of a point.

Hyperinflation is almost impossible in a market economy. Japan has proven that you really have to try to ruin a currency and even they haven't been able to do it.

So putting the country 20 Trillion in debt isn't really trying?

It's nice to have something for money that can't become worthless.

 

[Zippyjuan]

So how often does hyperinflation occur with fiat money? It is actually pretty rare though it does happen. More often related to loss of confidence in the government.

 

[Krugminator2]

So putting the country 20 Trillion in debt isn't really trying?

No. Not really. It is a problem for growth. It isn't a risk for hyperinflation. The US has lower debt levels as a share of the economy than almost every country in Europe. Germany has a similar debt load. Japan has triple the debt level of the US.

 

[Dr.3D]

So how often does hyperinflation occur with fiat money? It is actually pretty rare though it does happen. More often related to loss of confidence in the government.

Research Shows ALL Paper Money Systems Failed
http://goldsilverworlds.com/gold-silver-insights/research-shows-all-paper-money-systems-failed/

 

[Zippyjuan]

Page not loading for me but how many times has the dollar failed? The British Pound? The Euro? The Chinese yuan? What do they consider "failed"? (finally loaded- they even count the currencies which decided to join the Euro as "failed"). Others counted as "failed" include countries absorbed by others due to war/ conquest (which is not a failure of the currency). Those were political or military- not money- failures.

(30%) 184 ended monetary unions, dissolution or other reforms, such as the creation of the Euro in 1999 (and its physical use since 2002);
(15%) 94 ended through acts of independence (former colonial states renaming or issuing new currency);
(27%) 156 were destroyed by hyper-inflation (caused by over-issuance of paper money by governments and central banks);
(28%) 165 were destroyed by war (deemed invalid through military occupation or liberation).

The Second World War saw at least 95 currencies vanish as nations were conquered and liberated. Next to this, however, hyperinflation is one of the greatest calamities to strike a nation.

If gold backed currencies never fail, how many of them are still in use today?

 

[Dr.3D]

Page not loading for me but how many times has the dollar failed? The British Pound? The Euro? The Chinese yuan?

If gold backed currencies never fail, how many of them are still in use today?

 

[brushfire]

SO only certain people are allowed to use them? What needs to be "nationalized"?

"This note legal tender for all debts public and private"

They need to define legal tender, otherwise they're powerless. Who decides how many of those notes are in circulation? Such power is readily abused by a politically corrupt government that writes more checks than it can cash - reckless pandering to the electorate and serving special interests is an expensive venture. The system we have now promotes this government sponsored counterfeit (in my opinion its not any different than a group of individuals printing money in their basements). This counterfeit is the source of the inflation we are speaking to... What's funny is that the FED was supposed to control inflation

I bet with each trough, we find government meddling with another glorious paver made with the best of intentions:

Gold/precious metals are not perfect substitutes by any stretch, but its harder for governments to abuse the currency/override markets. That is, unless they have a scheme like Bretton Woods - just like pricing bread in Soviet Russia, it eventually became so laughable that they just abandoned it.
I think the point is to get government out of the currency game and allow the market to determine the value.

something generally accepted as a medium of exchange, a measure of value, or a means of payment...

Who better to determine this than individuals? We've got more than enough of the government's "good intention bricks" to pave a road from hell and back, 3 times. I think if we dig into the issue a little deeper, we also see this being the reason as to why the middle class has become extinct. I would support the ending of the Fed - but I would not support "fixing the fed" by creating other another central bank. I would also not support creating some BS government price fixing scheme on gold, and then calling it a market driven standard.

We'll see where trump goes with this...

 

[Zippyjuan]

They need to define legal tender, otherwise they're powerless. Who decides how many of those notes are in circulation? Such power is readily abused by a politically corrupt government that writes more checks than it can cash - reckless pandering to the electorate and serving special interests is an expensive venture. The system we have now promotes this government sponsored counterfeit (in my opinion its not any different than a group of individuals printing money in their basements). This counterfeit is the source of the inflation we are speaking to... What's funny is that the FED was supposed to control inflation

I bet with each trough, we find government meddling with another glorious paver made with the best of intentions:

Gold/precious metals are not perfect substitutes by any stretch, but its harder for governments to abuse the currency/override markets. That is, unless they have a scheme like Bretton Woods - just like pricing bread in Soviet Russia, it eventually became so laughable that they just abandoned it.
I think the point is to get government out of the currency game and allow the market to determine the value. Who better to determine this than individuals? We've got more than enough of the government's "good intention bricks" to pave a road from hell and back, 3 times. I think if we dig into the issue a little deeper, we also see this being the reason as to why the middle class has become extinct. I would support the ending of the Fed - but I would not support "fixing the fed" by creating other another central bank. I would also not support creating some BS government price fixing scheme on gold, and then calling it a market driven standard.

We'll see where trump goes with this...

Noting that a large portion of that chart was under a gold standard- we were under some form of it or another until 1972.

 

[Pizzo]

He picked the Munchkin for treasury.

 

[Dr.3D]

Noting that a large portion of that chart was under a gold standard- we were under some form of it or another until 1972.

That doesn't mean the government wasn't printing more receipts for gold and silver than it had in the bank. That's why it started making copper coins with a silver colored coating. The government has been cheating for some time.

 

[devil21]

He picked the Munchkin for treasury.

Total coincidence that Goldman Sachs folks visited Trump Tower today. Total coincidence.

 

[Pizzo]

Total coincidence that Goldman Sachs folks visited Trump Tower today. Total coincidence.

Just want to add, all reports saying he is expected to name, imminent, etc but I haven't seen a 100% confirmation just yet. Pretty awful if true.

 

[devil21]

Front page of CNBC not good enough?

 

[Pizzo]

Front page of CNBC not good enough?

I haven't been on cnbc's website in quite some time. I'm just saying what I saw on Twitter. Initially it was being reported as done, then the newer tweets I was seeing say he is expected to and such.

Edit: front page of cnbc also says "expected to name" which echoes what I said about the reports. Just being cautious here, want to make sure it's not a bad mean is all.