Nothing. Only propaganda. The value of the currency is perception based. Whoever controls the money supply controls its value and has the power to sink or swim. The owners of the Federal Reserve decide. Unless Obama puts his foot down. Which he won't. They cannot overdo it right now with the printing though. I mean they are overdoing it, but they still cannot afford to be too obvious about it or it may cause public outcry Greece style. You're right and the guy is a total ass. Seems shady. Just some of the responses made me SMH.
No, the Automobile is the same price today as it was a week ago irregardless that the value of Gold has changed. Gold simply has no relationship with an economy but a "construed" intrinsic value. There is far more to be said.....but the fact is Gold is not a legitimate Standard where Goods and Services is. Your video explains well why you and Ron Paul are best left in the ally - people understand Goods and Services they themselves are a part of, they do not understand nor should they need to, the detached relationship of an Element to their checking account, there is none.
During both Weimar and the great depression, the buying power of gold remained the same. Show me where gold ever experienced an inflation. There was none, ever. Why is that?
Show me where gold ever experienced an inflation. That is why there was a Depression - people do not work for an Element, few during that time had access to. I guess for liquidity you and Ron Paul would be handing out the Element at the street corner......
Nah, handing things out would be more Obama's style. I believe in trading value for value. Revisit Executive Order 11110.
True. The earth's consumable water supply may be limited too. At least with water, it keeps you alive. With gold, you can't eat it, you can't drink it. mainly, it's just to make jewelry, and I guess it's only more valuable than silver jewelry, because people perceive it to be so.
I just think gold is kind of like paper money, in that the value it does hold, is probably elevated a great deal on our perceptions of it's value. In your Wiki link it says 10% of gold is used in industry, but I don't see any use where that gold usage is vital. If you compare it, silver is placed at a lower value, yet it probably has more uses, and 38.5% of silver is used in industry. I guess gold is a good investment, but it's just because buyers feel it's worth something.
For how long has gold been considered valuable and other than for jewelry, what is it that made the ancient Egyptians, the Hebrews, the Romans and everybody else agree that it is THE metal to use for the most valuable coins?
Thanks. I like how they break it down by year. Here's the first entry mentioning gold as money: On that "Gold" wiki link page, I found this as well: Here's another one: So, I guess they decided to use it because metals "are at once durable, portable, and easily divisible." I still think using barley was a good idea, if times are hard, you could always eat your money.
There was a depression because a democrat (FDR) decided the Keynesian school of economic thought and an expansion of Hoover's programs and ideological direction were the best direction. This was all contrary to the budget cutting and balancing and reduced spending platform he ran on originally. FDR's increased spending actually extended the great depression by 7 years. All one need do is look at history to see the direction we are headed now. It's eerily familiar.
I do not have a specific answer, but I do have a theory. 1) Gold is a rare metal. 2) Gold doesn't decay easily, its very resistant to corrosion. Thus it can be stored for a long time safely. 3) It can be mixed with other metals to make alloys and by melting the alloy you can separate the gold. 4) Unlike Diamond, the value of Gold doesn't depend on the size. Value of 1 Gram of gold is consistent with the value of 10 grams of gold. All these properties combined made gold de-facto standard of purchasing power for a long time in our history.
It's the rarity that makes it valuable. The scarcity... Supply/Demand.... Now, in a Keynesian's world, they would have you believe that simply printing more gold will not only increase value, but it will grow the economy. I think we both know that you cannot do either with gold or printed money as reality has proven.
I would also suspect that back in those days women loved their gold jewelry and whoever was able to get his women a lot of it, was pretty much set in the female department. Especially since back in those days it was cool to have more than one wife.
"Hoover's programs and ideological direction were the best direction" - and that is why he won re-election over FDR...? ........... Gold may not have (?) but the Goods and Services did during the Mia & Hoover 30's Depression. - Today if on the Gold Standard the same automobile last month would cost ~ 3 times as much today without reason and the only beneficiaries would be the Gold Speculators - Those that FDR put in their place by eliminating the artificial Standard. Ron Paul wants his share to remain constant irregardless an increase in receivership (Population etc) that can not be accomplished by a Standard based on a fixed allotment that instead insures a shortage of shares for everyone else - a Depression without reason.