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Living Room / Re: Anyone Using Bitcoins Yet?
« on: June 25, 2011, 01:53 PM »I don't agree with every(most- even)thing that has been done financially, but this I will say... getting off the gold standard was the best thing that has been done in concept, and going back to it is pretty much a no-go, even talking fiscal responsibility. Basing your economy on a limited resource limits your economic growth.
An article on why we shouldn't go to the Gold standard, and an alternative standard to replace the USD.-wraith808 (June 24, 2011, 04:09 PM)
That is a horrible and bogus article that doesn't even understand the concept of money. It is precisely BECAUSE it is scarce that it is a good source to base the monetary system on. The reason everything fluctuates so much is because it is being debased by the controllers of the system. Gold's price fluctuations are not the effect of the value of gold, but rather the relative value of gold. In other words, the reason the price of gold changes so much is because of the amount of fiat currency people are willing to take in it's place. When there is more currency, we call it inflation, and it takes many more dollars/pounds/whatever to buy it. When there is less, or when it is based on a solid relatively fixed quantity commodity, it takes less to buy it.
Think of it this way. In 1950, just for example, it took approximately 20 oz of Gold to buy an average car. That same car cost about $400. (As a side note, in 1950 the dollar was on a gold standard pegged at $20/oz IIRC). Today, it is still about 20 oz. of Gold to buy an average car that cost - what? About $30,000? That, to me means that the price of gold has stayed the same, but the value of the dollar has dropped (not gold going up!). Something to think about...