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ontheway · Posted: Tue Oct 16, 2007 6:51 am Post subject:

Many of you have asked about other modern currencies.

Today, the currencies of the world are backed by the dollar. The dollar is acting as the "gold" for those currencies. Some countries use a basket of foreign currencies to back their currency.

As a result, all the currencies of the world are falling together. That is why comparing the decline in the value of the dollar to other currencies is silly. It's like comparing the rate of fall of a sky diver to other sky divers. They are falling together.

(Interestingly, if the dollar was backed by gold, then the dollar's gold backing would simultaneously back the other currencies using the dollar for backing. This was what the situation was supposed to be, before the massive government inflation of FDR, Johnson, Nixon and Nixon's act of betrayal. The countries of the world were using gold, and gold backed dollars to back their currencies. He robbed the citizens of the US and the people of every other country in the world. This was his greatest "high crime" following on the inflation of his predecessors. This is why all the currencies are still backed by the dollar. It was a continuation of the previous real backing, intended to provide cover and delude the public. Plus, at the time, the decoupling of the dollar from gold was expected to be temporary. Everyone knew it was a bad idea which would result in eventual disaster.)

Being linked helps to support the dollar because people are more easily fooled when con jobs become more complex. Everyone in each country is being robbed by inflation, simultaneously.

Now, of course, the currencies for the most part are floating. That means that there are relative changes in values. Sometimes they rise and fall as compared to each other. This occurs primarily due to the fact that different countries inflate at different rates. Government policies can cause people's feelings about a country and its currency to change and the currency will adjust. This is similar to when skydivers change their body shape in the air and fall at different rates. They are all falling, they will all hit ground, but they can have varying rates of speed on the way down.

Since all of the currencies of the world are fiat money, they all have a real value of zero already, its just that the people don't know it yet. At any time, a loss of confidence could cause a run away from money and any one currency or the whole entertwined mess could collapse.

That, of course, is why the US banned, for a while, the private ownership of gold. Gold is one of the easiest places for people to run when they are trying to escape the eventual demise of a falling fiat currency. Other alternatives include: land, diamonds, other gems, siver, other precious metals. But the best items are those that are small with a high value and easy to hide. Land can be confiscated and taxed easily. When people decide to run from a currency, it will collapse quickly. That is why backing money with other fiat money, banning gold ownership, and creating crazy lies such as the dollar being backed by the economy or the full faith and confidence of the government is such nonsense.

(Robbing the people of their gold, followed by the devaluation of the US currency from $20 to $32 per ounce was one of that fascist FDR's many evil deeds, along with changing a recession into the Great Depression, and numerous things I've mentioned in other threads in regard to the energy crisis, malinvestment on a massive scale and the destrution of hundreds of millions of jobs around the globe.)

Currencies that have failed, such as Germany, Argentina etc. have done so because of inflation that occurred at a rate far higher than the dollar and other more "stable" currencies. They nosedived into the dirt due to having even worse government policies.

If a currency is "backed" by gold or some other currency, the backing must be honest. That is, the country must not issue more currency than the amount of backing.

Milton Freedman did not understand money very well - one of his shortcomings. There is no need to increase the gold supply for a gold backed currency. If the gold supply is fixed, the supply of money will be fixed. This does not hurt the economy at all. It just means that as the economy expands, the price level will continually fall.

This is exactly what SHOULD happen in a free market with a gold standard. Increasing productivity and an expanding economy and having investment policies that do not cause malinvestment will encourage savings, investment and maximum economic growth. There would be zero real inflation or deflation, but the general price level, i.e. the Consumer Price Index and other such tools that measure price levels (but do NOT actually measure inflation), would fall continuously, meaning that retired people and others living on fixed incomes and savings would find themselves becoming continually RICHER, year after year.

Zimbabwe: If Zimbabwe had had a currency backed by a 100% gold standard, the currency would still be rock solid and stable despite the other government policies. It would seem to be rising rapidly against the world's currencies. The currency could go on and on, despite the other government policies, evil doing and damage to the personal and economic liberties of the people and the economy, as long as the government kept its hands off (and didn't inflate or debase the currency, which would then necessitate a devaluation or in the extreme, a collapse).

Of course, evil governments can never resist the temptation to manipulate the money supply, inflate, debase, rob the people and blame unions, oil, weather, farm prices, business, big oil, big steel, whoever ... it's always a government lie to hide its own evil doing.

huffdaddy · Joined: 25 Nov 2005

Ya-ta Boy · Joined: 16 Jan 2003 Location: Established in 1994

blaseblasphemener · Posted: Wed Oct 17, 2007 4:20 am Post subject:

huffdaddy · Joined: 25 Nov 2005

Ya-ta Boy · Joined: 16 Jan 2003 Location: Established in 1994

blaseblasphemener · Posted: Wed Oct 17, 2007 5:07 am Post subject:

mindmetoo · Joined: 02 Feb 2004

mindmetoo · Joined: 02 Feb 2004

mindmetoo · Joined: 02 Feb 2004

mindmetoo · Joined: 02 Feb 2004

blaseblasphemener · Posted: Wed Oct 17, 2007 6:02 am Post subject:

mindmetoo · Joined: 02 Feb 2004

ernie · Joined: 05 Aug 2006 Location: asdfghjk

the problem with the federal reserve bank is that it is NOT controlled by the government, i.e. they are not elected, so they don't have any responsibility to anyone except their shareholders! the british federal reserve system was one of the main reasons for US secession from britain, and the US federal reserve has been accused by many as the cause of the great depression...

a gold standard isn't perfect because, as you say, people can manipulate the value of gold... however, the value of gold is much more difficult to manipulate than the value of something completely imaginary, i.e. a currency not backed by anything! i think the world currency (whatever that may be in the future) needs to be backed by some commodity: silver, gold, or whatever... ANYthing is better than NOTHING!!!