Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Just for grins, try to imagine an economy without Fractional Reserve Banking where only the Treasury could create money. If a bank had 100 depositors with $1000 each ($100,000 total) the bank could lend only $90,000 so it has some money on hand for normal withdrawals. There would be no revolving credit but there would be debit cards limited to the amount in the account.
The government could only borrow for major capitol projects (not for wars) and only for a limited time with other expenses coverd by taxes.
How would this work?
Hi GregW,
All government financing could be done with direct treasury notes. Do you really think that would not be enough at this point? It would be as easy as pie to run that system. Credit markets would simply be time deposits. You also would not have all these useless inflation hedge markets that distort value and utility like oil.
Bretton Woods was 1944. I assume you are referring to Bretton Woods II, 1971, when Nixon "closed the gold window".
A fully gold-backed monetary system is without hazards.
Yes, sorry. That is what I meant.
The argument I hear against a totally gold backed system is that we're limited in the amount of gold we can physically acquire. I would love for someone to really explain to me how a gold backed system would work IF the rest of the world is still using the dollar as the reserve currency AND in the face of the current global system. I haven't gotten a good explanation of that yet. I am not opposed to reading if you have a source.
The argument I hear against a totally gold backed system is that we're limited in the amount of gold we can physically acquire. I would love for someone to really explain to me how a gold backed system would work IF the rest of the world is still using the dollar as the reserve currency AND in the face of the current global system. I haven't gotten a good explanation of that yet. I am not opposed to reading if you have a source.
I agree. Gold was also easily manipulated. I could see fake video of Gold bullion now. They did the same sprinkling gold coins on boxes of nails. Lincoln green backs is the only way. I say nationalize the banks as well.
I agree. Gold was also easily manipulated. I could see fake video of Gold bullion now. They did the same sprinkling gold coins on boxes of nails. Lincoln green backs is the only way. I say nationalize the banks as well.
Bretton Woods was 1944. I assume you are referring to Bretton Woods II, 1971, when Nixon "closed the gold window".
A fully gold-backed monetary system is without hazards.
Hi Nor'Eastah,
See "Long Depression" after silver was demonetized shortly after the civil war to a gold standard. Its as safe as a hemophiliac dancing barefoot on broken glass.
I have a pretty good head for figures, but this thread has my head aching. No wonder I barely passed Economics in college. I REALLY don't understand all this money stuff. It just seems to me that common sense dictates that we should have solid resources to back up our money. Gold, silver, lumber, food, and other products.
And I could never understand how "shopping" helps our economy, since very little is made in the US. Isn't shopping helping China's economy?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
