anotherneil
Well-Known Member
This poll is for US citizens or permanent residents regarding US "monetary policy".
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Do you want to remain off of the gold standard?
- Thread starter anotherneil
- Start date
anotherneil
Well-Known Member
If we return to the gold standard, then there can't be any inflation due to fractional reserve lending.
Pogo
Well-Known Member
Just looked up fractional reserve lending, care to explain how it relates to inflation?
When you get done with that, you can explain your economic theory that does not require inflation and how it works in a society.
anotherneil
Well-Known Member
At first I was shocked to read this, thinking that your source should've promptly answered your question, but after trying to find a source (which I thought would be easy until it became painfully obvious that it isn't), I now see that it's hard to find a source on this, but it's out there:
The Truth About Fractional Reserve Banking
What is Fractional Reserve Banking? Fractional reserve banking is a banking system in which only a fraction of bank deposits are backed by actual cash or reserves held by the bank. Banks create money by lending out a larger amount of money than they actually have in reserves.
How Does Fractional Reserve Lending Work?
March 2023 has been a tumultuous month for the banking sector, with Silicon Valley Bank (SVB) and Signature Bank experiencing major failures, marking the largest bank collapse since the 2008 crisis. The root cause of these failures was the fractional reserve banking behavior these institutions...
I suppose the banksters work hard to prevent people from becoming aware of this, but I think it's obvious if you look at how the price of gold has skyrocketed, from the days when 1 troy ounce of gold was redeemable for $20:
Twilight Hue
Twilight, not bright nor dark, good nor bad.
I think politicians were a lot more responsible with their spending when we used to be on the gold standard. Everything went to hell once we started with fiat currency and look at where we are now.
Balthazzar
N. Germanic Descent
What was the reason behind our departure from the "gold standard"?
I'm certainly not opposed to utilizing gold as a type of currency, but to go back to the standard might be a little less desirable than some imagine it to be. I like silver, also. Palladium is on the market and Platinum, too. I'm sure all of these can be utilized as forms of currency as exchanges.
Gold backs have grown in popularity and have become legal currency is some states with participating retailers who accept them. They can be exchanged like regular bills and are similar in appearance and they contain real gold. They haven't reached legal tender status in my own state, however. The option is available if we ever choose to. Beyond this, I'll need more information to answer beyond needing more information.
I'm certainly not opposed to utilizing gold as a type of currency, but to go back to the standard might be a little less desirable than some imagine it to be. I like silver, also. Palladium is on the market and Platinum, too. I'm sure all of these can be utilized as forms of currency as exchanges.
Gold backs have grown in popularity and have become legal currency is some states with participating retailers who accept them. They can be exchanged like regular bills and are similar in appearance and they contain real gold. They haven't reached legal tender status in my own state, however. The option is available if we ever choose to. Beyond this, I'll need more information to answer beyond needing more information.
Twilight Hue
Twilight, not bright nor dark, good nor bad.
I still remember of the rumors that we actually squandered our gold reserve housed at Fort Knox and going Fiat was just to cover up for the missing gold.
I don't know if that's actually true or not, but I did remember the rumors at the time way back shortly after the change.
Balthazzar
N. Germanic Descent
I'm still unsure what the gold standard is.
Pogo
Well-Known Member
Relevance to banking? What form their assets are is not really relevant to how they operate.At first I was shocked to read this, thinking that your source should've promptly answered your question, but after trying to find a source (which I thought would be easy until it became painfully obvious that it isn't), I now see that it's hard to find a source on this, but it's out there:
The Truth About Fractional Reserve Banking
What is Fractional Reserve Banking? Fractional reserve banking is a banking system in which only a fraction of bank deposits are backed by actual cash or reserves held by the bank. Banks create money by lending out a larger amount of money than they actually have in reserves.www.linkedin.com
How Does Fractional Reserve Lending Work?
March 2023 has been a tumultuous month for the banking sector, with Silicon Valley Bank (SVB) and Signature Bank experiencing major failures, marking the largest bank collapse since the 2008 crisis. The root cause of these failures was the fractional reserve banking behavior these institutions...www.securities.io
I suppose the banksters work hard to prevent people from becoming aware of this, but I think it's obvious if you look at how the price of gold has skyrocketed, from the days when 1 troy ounce of gold was redeemable for $20:
I'm pretty sure inflation (which is rather low in the USA right now - not that you would notice it from what some people claim) existed and was a real worry during the reign of the Gold Standard.
There may be good reasons for returning to it or to pursuing another one, but it is naive to expect it to be decisive in avoiding inflation - particularly in these days when make-believe is a main political directive for the Republicans.
There may be good reasons for returning to it or to pursuing another one, but it is naive to expect it to be decisive in avoiding inflation - particularly in these days when make-believe is a main political directive for the Republicans.
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Pogo
Well-Known Member
I hate to ask this silly question, but do you think that banks can or are or should be limited to loaning out the sum of cash assets?At first I was shocked to read this, thinking that your source should've promptly answered your question, but after trying to find a source (which I thought would be easy until it became painfully obvious that it isn't), I now see that it's hard to find a source on this, but it's out there:
The Truth About Fractional Reserve Banking
What is Fractional Reserve Banking? Fractional reserve banking is a banking system in which only a fraction of bank deposits are backed by actual cash or reserves held by the bank. Banks create money by lending out a larger amount of money than they actually have in reserves.How Does Fractional Reserve Lending Work?
March 2023 has been a tumultuous month for the banking sector, with Silicon Valley Bank (SVB) and Signature Bank experiencing major failures, marking the largest bank collapse since the 2008 crisis. The root cause of these failures was the fractional reserve banking behavior these institutions...
I suppose the banksters work hard to prevent people from becoming aware of this, but I think it's obvious if you look at how the price of gold has skyrocketed, from the days when 1 troy ounce of gold was redeemable for $20:
Heyo
Veteran Member
Those rumours have some serious backup.
- Nobody has been allowed to inspect Fort Knox or any other vault for decades.
- The US dropped the Gold Standard when France wanted to have their gold back that they stored in the US during WWII. (Implying that the gold wasn't there any more.)
Heyo
Veteran Member
It's simply the promise that the Fed will give you gold for dollars. Implying they hold enough gold to do that for every dollar in circulation. They don't, and they didn't for a long time. Returning to the gold standard would instantly crash the dollar as well as the value of gold.
Balthazzar
N. Germanic Descent
Yeah, I'm lost on the concept. I like gold. I like silver. I don't own any, anymore, but I like it. Wait, that's not entirely true. I own one aluminum foil looking note with some silver content in it. It has an image of a dragon on both sides. I thought it was cool. I picked a few up for ten bucks each online a while back.
Russia is now incorporating silver in their reserves I read. The entire global economic structure seems to be changing. I have no idea how it's going to turn out. Sometimes I'm happy to be poor and able to hunt, fish, etc. I haven't been for a couple decades now, though.
Wirey
Fartist
....and who wants to go back to when women couldn't vote and teenagers weren't so uppity?
The US economy would collapse if the US had to gather up enough gold to back up every dollar they've issued. Or, they could declare the existing dollar worthless and collapse the global economy, themselves included. Win-win!
The US economy would collapse if the US had to gather up enough gold to back up every dollar they've issued. Or, they could declare the existing dollar worthless and collapse the global economy, themselves included. Win-win!
I think we should be on it… it prevents just “printing monopoly paper money” that has no backing.
Twilight Hue
Twilight, not bright nor dark, good nor bad.
Seems the gold standard might be in the works for a return according to Forbes.
www.forbes.com
The Signs Are There: The Gold Standard Is Coming Back
Even though the historical gold standard is almost universally reviled by economists, events are pushing us to a new monetary system based on the yellow metal.
www.forbes.com
Heyo
Veteran Member
It's not that fiat currency has "no backing", just that it isn't as obvious, and it can be more volatile.