Is the Dollar screwed?

[ROTTEN APPLE]

with a gold or silver standard you curb inflation. because you cannot print more currency and devalue it without the gold and silver to back it up. we can't just go back to a gold standard our government has to take back the power of creating money from the private federal reserve bank. We have to pay interest to the fed for letting them print our own money. There are alot of people out there having their money stolen from their 401k's through inflation.

[ROTTEN APPLE]

Fiat Paper Money

by Rep. Ron Paul, MD



In an article entitled "Gold and Economic Freedom," Federal Reserve Chairman Alan Greenspan wrote that "The excess credit which the Fed pumped into the economy spilled over into the stock market- triggering a fantastic speculative boom...The speculative imbalances had become overwhelming and unmanageable by the Fed... In the absence of the gold standard, there is no way to protect savings from confiscation through inflation." The irony is that Mr. Greenspan's words, written in 1966 to describe the era leading up to the Great Depression, could easily have been written in 2003 to describe the consequences of his own Fed policies during the 1990s.

Mr. Greenspan once understood that a fiat money system represents nothing more than a sinister and evil form of hidden taxation. When the government can print money at will, it's morally identical to the counterfeiter who illegally prints currency. Fiat money polices especially hurt savers and those on fixed incomes, who find the value of their dollars steadily eroded by the Fed's printing presses.

We need to understand why a fiat system is so popular with economists, the business community, bankers, and government officials. One explanation is that a fiat monetary system allows power and influence to fall into the hands of those who control the creation of new money, and to those who get to use the money or credit early in its circulation. The insidious and eventual cost falls on unidentified victims, who are usually oblivious to the cause of their plight.

Another explanation is that it's human nature to seek the comforts of wealth with the least amount of effort. This desire is quite positive when it inspires efficient work and innovation in a capitalist society. Productivity is improved and the standard of living goes up for everyone. But this human trait of seeking wealth and comfort with the least amount of effort is often abused. It leads some to believe that by certain monetary manipulations, wealth can be increased out of thin air.

Most Americans are oblivious to the entire issue of monetary policy. We all deal with the consequences of our fiat money system, however. Every dollar created dilutes the value of existing dollars in circulation. Those individuals who worked hard, paid their taxes, and saved some money for a rainy day are hit the hardest. Their dollars depreciate in value while earning interest that is kept artificially low by the Federal Reserve easy-credit policy. The poor and those dependent on fixed incomes can't keep up with the rising cost of living.

We do hear some minor criticism directed toward the Federal Reserve, but the validity of the fiat system is never challenged. Both political parties want the Fed to print more money, either to support social spending or military adventurism. Politicians want the printing presses to run faster and create more credit, so that the economy will be healed like magic – or so they believe.

Fiat dollars allow us to live beyond our means, but only for so long. History shows that when the destruction of monetary value becomes rampant, nearly everyone suffers and the economic and political structure becomes unstable. Spendthrift politicians may love a system that generates more and more money for their special interest projects, but the rest of us have good reason to be concerned about our monetary system and the future value of our dollars.

September 12, 2003

[jczeroman]

In related news, the liberty dollar was raided today and millions in gold and silver were siezed - still without any reason/

http://www.libertydollar.org/ld/legal/raid.htm

[The Omega Concern]

originally posted by ensoul:

gold's market value fluctuates in the short term because of demand or because someone dumps a lot of it, and it's price goes up with inflation, but in the long term it's value is constant.

one ounce of gold in the 20s would get you the same goods and services it would in the last 10 years, though naturally things like cars and computers are cheaper. investing in gold for the long term is basically a paranoid move, burying your talents.

The main reason I wanted to invest in Gold in 2000 was because of something Neil Cavuto said on his business show.

He kept going on and on about "Dow 40,000" and essentially laughed at the prospects of precious metal investment as foolish. It was in the low 300's at the time (it's now @ $780).

I knew this line of thining can only exist in a perfect world and that Cavuto and others like him may know a lot about business, but very little of prophecy and the powers that be who have the ability to enact it.

originally posted ibepawpaw:

IS THE DOLLAR SCREWED ? The confederate dollar maybe..
The low dollar is just a sign of another fiscal cycle. The value will return as the economy improves as it always does. Too much gloom and doom in here.
Gold and silver have no real value.. Same as diamonds/ etc. What are they really worth.. Make nice rings and chains.? Gold will return to 350/oz and the US dollar will continue to be the most used currency in the world..

It's possible a lot of the Dollar issues reflect a lack of trust and confidence worldwide with the current U.S. President. But there's been a paradigm shift occuring in Global economics regardless and the old rules won't apply anymore. Not with that trade imbalance with China.


...........

USD is now on par with Canada's dollar. Next up, the Peso. After that, the Amero for all three countries. Unless a revolution occurs within the states, it's a done deal. Just a matter of time.

[redbull]

Originally Posted by jczeroman

http://www.libertydollar.org

this is pretty fucking weird

[monkeyfritters]

printing a new currency in the US isnt going to go over well.

[monkeyfritters]

it's a good idea tho.

and how different is this from linden dollars on second life, really.

[ROTTEN APPLE]

I was supposed to receive 10 ron paul copper $1 coins from liberty dollar this month. I'm going to have to sign up for the class action lawsuit against the us gov so that I can try to get my coins back.

[The Omega Concern]

Dollar drops on Chinese comments.


a rather timely developement.

The dollar dropped to record lows versus the euro Wednesday after comments by a Chinese official stoked fears the central bank of the world's fourth largest economy would reduce its holdings of U.S. assets.

Reduce it's holdings of U.S. assets.

I wonder if that Charlie Wilson 4.5 Trillion dollar note is one of them.

[Gish08]

I'm afraid of what our economy (and society) is going to look like in another 10-15 years.