farewell to the dollar? - Diesel Forum

BobR · 10-13-2009, 10:33 AM

I see that gold topped $1,060 today. That's up 5% in the last week. 10% over the last month. 250% in the last five years!

The increase in commodity prices reflects the decrease in the value of the dollar.

Where/when will it end? My guess is that it will not end until we get hold of our budget and shut off the printing presses. Anybody have a crystal ball?

checkthisout · 10-14-2009, 06:44 AM

Quote:

Originally Posted by BobR

I see that gold topped $1,060 today. That's up 5% in the last week. 10% over the last month. 250% in the last five years!

The increase in commodity prices reflects the decrease in the value of the dollar.

Where/when will it end? My guess is that it will not end until we get hold of our budget and shut off the printing presses. Anybody have a crystal ball?

They want a weak dollar in order to get exports back up.

Since we don't produce anything, that means we become a Colony again and start exporting natural resources like our trees and coal. Oh the Glory.

mud flap · 10-14-2009, 07:14 AM

I read something recently that said there had been two or three other occasions in the last 100 years where the amount of US cash in circulation had greatly exceeded the amount (in dollars) of gold held in the US. In these cases, eventually the price of gold was driven up so that the value of the gold matched the value of the paper money.

We are long over due for one of those corrections now and with the tremendous amount of cash that has been printed, gold would have to rise to over $15,000 per ounce for the value of the gold to match the value of all of the cash.

So maybe $1000 per ounce gold is still a bargain?

zeroo · 10-28-2009, 11:56 AM

capitolism and lack of moral convictions may have ran its course here. so maybe we will have to change the game plan for our society. capitalism was great for founding a country, but it may not be able to sustain a nation.

LOOSEWHEEL · 10-28-2009, 12:18 PM

I see that the OP posted Oct 14th. The US$ has been on the rise ever since. Coincidence???

checkthisout · 10-29-2009, 06:08 PM

Quote:

Originally Posted by zeroo

capitolism and lack of moral convictions may have ran its course here. so maybe we will have to change the game plan for our society. capitalism was great for founding a country, but it may not be able to sustain a nation.

Define capitalism.

zeroo · 10-31-2009, 08:30 AM

Quote:

Originally Posted by checkthisout

Define capitalism.

I don't know but mixed with political lobbing could could result in multiple monopolies. When greed is allowed to run amuck in the government capitolism has reached it's limits. Don't you agree.

AK_Gandy · 10-31-2009, 01:23 PM

Quote:

Originally Posted by zeroo

When greed is allowed to run amuck in the government capitolism has reached it's limits.

Exactly what I have been saying all along.

Capitalism is great, as long as there are reasonable regulations in place to protect investors and the general public.

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drcampbell · 10-31-2009, 03:14 PM

Quote:

Originally Posted by mud flap

I read something recently that said there had been two or three other occasions in the last 100 years where the amount of US cash in circulation had greatly exceeded the amount (in dollars) of gold held in the US. In these cases, eventually the price of gold was driven up so that the value of the gold matched the value of the paper money. ...

Please provide a citation. It would be interesting to know how that author arrived at the conclusion that gold is the sole asset "backing" paper dollars. It would also be interesting to see the data for paper money in circulation vs. gold on reserve.

AK_Gandy · 10-31-2009, 04:44 PM

Quote:

Originally Posted by mud flap

I read something recently that said there had been two or three other occasions in the last 100 years where the amount of US cash in circulation had greatly exceeded the amount (in dollars) of gold held in the US. In these cases, eventually the price of gold was driven up so that the value of the gold matched the value of the paper money.

We are long over due for one of those corrections now and with the tremendous amount of cash that has been printed, gold would have to rise to over $15,000 per ounce for the value of the gold to match the value of all of the cash.

The USA (or any other country) has not used gold to back all (or even most) of their currency in a very long time.

Currency operates under a system caled 'fiat currency."

In a nutshell, that means our money is only backed by the stability and economic strength of our country.

Not by reserves of gold.

Nixon even stopped the procedure of other countries asking for gold in exchange for dollars back in 70's. At that time, he felt there was too much gold leaving the USA and basically told them that "you will just have to trust us."

In fact, although no one can really prove it (because they won't allow an audit).............I'll bet there's not a lot (if any) gold left in Fort Knox these days.

http://www.rapidtrends.com/the-history-of-fiat-money-in-the-usa/
(click above)

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Chinookman · 10-31-2009, 08:09 PM

Quote:

Originally Posted by drcampbell

Please provide a citation. It would be interesting to know how that author arrived at the conclusion that gold is the sole asset "backing" paper dollars. It would also be interesting to see the data for paper money in circulation vs. gold on reserve.

I think we all missed the point here.

The US Dollar is FIAT paper based on the sole faith of the U$ GUmmet. The gold standard was eliminated by Tricky Dick at the Bretton Woods Accord.

It's easy enough to look up. Our country has been over run by Progressives in both parties and we now have Marxists ideologues in power. Read up on the Czars. The end game IS to kill the founding values of this nation which are still valid values. One of the czars is quoted as saying the idea is to dismantle capialism brick by brick. Two of the czars are followers of Mao...yeah great group these czars.

Read the 5000 year Leap for a quick study on what made us a great country. Liberty is being systematically dismantled before our eyes.

The value of Gold goes up based on the demand from the educated consumer that recognizes gold as a solid source of real money. This has nothing to do with our dollar, other then that the printing presses are working over time and heading like the Wiemar Republic of old.

Read Ron Paul's primer on money. The OLD notes of Silver certificates were destroyed once all captured and now you read: "Federal Reserve Note". Yeah a note an IOU, you know like in Kalifornication kind of IOU's.

So stock up folks we are almost at 49% of entitlement crowd mentality that wants YOUR prezident to redistribute YOUR wealth.

How's that Hope and Change working out...?

Right......lol.....

Need more look at the Detroit crowd in line for free Obama money....that's OUR tax bucks at work....for now. OR as Margaret Thatcher once said socialism is great until you run out of other people's money.....

Oh and we have little gold in this country. Check again the US MInt has for the third time stopped minting gold coins due to the high demand for the product. Now does that make sense? Even a Economics 101 student should see that dog don't hunt....!

AK_Gandy · 10-31-2009, 08:31 PM

Quote:

Originally Posted by Chinookman

How's that Hope and Change working out...?

Pretty good so far.

Bush and his cronies are gone, we have someone who is willing to actually put a little mental exertion into his actions, health care for all Americans will soon be here, he hasn't started any wars under false pretenses and...........he's taking steps to keep big business from raping us again through their unbridled greed.

Not bad for only 9 months IMHO.

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Chinookman · 10-31-2009, 10:43 PM

Quote:

Originally Posted by AK_Gandy

Pretty good so far.

Bush and his cronies are gone, we have someone who is willing to actually put a little mental exertion into his actions, health care for all Americans will soon be here, he hasn't started any wars under false pretenses and...........he's taking steps to keep big business from raping us again through their unbridled greed.

Not bad for only 9 months IMHO.

.

You missed my point entirely BOTH parties are co-opted by progressives.

If you take the time to read the 5000 year leap and understand what is happening you will not be so happy with Mao-bama's health care..... both parties again are progressive and count on our ignorance of facts, history and the Constitutional limitations that are being shredded at this time.......

It's heart breaking to see how little people grasp what is happening to us and the Donkeys will be gone in 4 years when all this takes place....and they count on you people to have short memories and vote them back in .... sad indeed....

but then ignore my post about the Maoist loving czars and the ideology that is setting policy toward a Venezuelan style government in short order.....when these policies take place the few of us still working will be retired and not have the income to get sucked dry....anymore....

AK_Gandy · 10-31-2009, 11:22 PM

What I'm "ignoring" (or trying to anyway) is your ranting about how "progressives" have ruined this country when in fact, it's been the 'me first/greed is good/leave us alone to rip people off' conservatives that got us into this mess in the first place.

BTW - What is the opposite of 'Progressive?'

Yup - It's 'REGRESSIVE'

Main Entry: re·gress
Pronunciation: \ˈrē-ˌgres\
Function: noun
Etymology: Middle English regresse, from Anglo-French, from Latin regressus, from regredi to go back, from re- + gradi to go — more at grade
Date: 14th century
1 a : an act or the privilege of going or coming back b : reentry 1
2 : movement backward to a previous and especially worse or more primitive state or condition
3 : the act of reasoning backward

Sounds about right to me.

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checkthisout · 11-01-2009, 03:05 AM

There is no reason to back money with gold unless you think people that mine for gold or people who happen to find some on their property are more valuable to society than everyone else and should thus be richer.

Currency stability is provided through sound banking regulation and currency value is provided by what we do as a country.

A generation of people about to retire has sold off our ability to produce turning us into a country of consumers with debt and no savings, they are dismantling our educational system making our country more stupid and they have raised a generation of people who think that sitting behind a computer and typing or running a cash register at a store that sells chinese junk is useful work.

Our ability to produce, the intelligence of our population and our ability to move about efficiently are the things that give us our wealth and give our currency value, not backing it by gold and going "see, we have nothing but at least our currency supply is limited by the amount of precious metal we can mine".