Redefinitions From The Left

[Speaker to Animals]

The main reason the USD is a huge reserve currency is all that gold. Nobody gives a shit about whatever nebulous 'security' we create. Nations keep wealth in USD because they know, in a pinch, we can liquidate the gold to pay off that massive debt.

But once we go there, the USD will go the way of the pound sterling. Make no mistake. The world will switch to the Euro and the Yuan.

[Smitty-48]

If liquidity, right-the-fuck-NOW is important, cash is hard to beat. One of the factors, for sure.

But that preference by you is a big fat non-sequitur-burger; it does nothing, nothing, to diminish the liquidity of gold. You can't swing a dead cat without hitting someone willing to accept gold in trade; good times or bad.

Can't swing a dead cat without hitting someone who is willing to take US dollars, I don't see anybody refusing to take US dollars, where are these people who refuse to take US dollars; habeas corpus.

[StCapps]

The main reason the USD is a huge reserve currency is all that gold. Nobody gives a shit about whatever nebulous 'security' we create. Nations keep wealth in USD because they know, in a pinch, we can liquidate the gold to pay off that massive debt.

But once we go there, the USD will go the way of the pound sterling. Make no mistake. The world will switch to the Euro and the Yuan.

Nothing to do with gold, nations keep wealth in USD because they know, in a pinch, you are more likely to pay than anyone else, because you are more wealthy and secure than any other nation, and the rule of law and those who enforce it, that keeps the whole thing humming. You can't have a free market is everyone can steal your shit with no threat of reprisal, when your markets are secure, they thrive.

[Smitty-48]

The main reason the USD is a huge reserve currency is all that gold. Nobody gives a shit about whatever nebulous 'security' we create. Nations keep wealth in USD because they know, in a pinch, we can liquidate the gold to pay off that massive debt.

But once we go there, the USD will go the way of the pound sterling. Make no mistake. The world will switch to the Euro and the Yuan.

You clearly don't understand the nature of the reserve currency, it has nothing to do with the relative value of gold, the Yuan is propped up by the US dollar, nobody will even take the Yuan, China can only buy things in US dollars because nobody trusts the Yuan, no matter how many magical rocks the opaque and lawless regime in Beijing claims to have. The Euro is also propped up by the US dollar, the only reason anybody will accept Euros is because they can be traded for US dollars.

[Fife]

If liquidity, right-the-fuck-NOW is important, cash is hard to beat. One of the factors, for sure.

But that preference by you is a big fat non-sequitur-burger; it does nothing, nothing, to diminish the liquidity of gold. You can't swing a dead cat without hitting someone willing to accept gold in trade; good times or bad.

Can't swing a dead cat without hitting someone who is willing to take US dollars, I don't see anybody refusing to take US dollars, where are these people who refuse to take US dollars; habeas corpus.

It's not zero-sum, Smits. Dollars and gold can both be liquid, or not, at the exact same time. Just because gold is money doesn't mean that USD is not. In fact just about anything can function as money. How well can it function, and how desirable is an object in that role? It all depends.

If you are at a Toronto strip club, would you rather have twenty C-notes, or a truck load of salt to spend?

If something really, REALLY shitty happened, would you rather have your top-most marginal safe money as $200,000 USD or a couple of hundred Krugerrands?

[Smitty-48]

If something really, REALLY shitty happened, would you rather have your top-most marginal safe money as $200,000 USD or a couple of hundred Krugerrands?

Brink of nuclear war in the Cuban Missile Crisis; people still taking US dollars. Breakout of World War Two; value of gold crashes by 50%.

[Martin Hash]

If something really, REALLY shitty happened, would you rather have your top-most marginal safe money as $200,000 USD or a couple of hundred Krugerrands?

Dude, you'd have to have those assayed. Nobody's going to know what a Krugerrand is. If you insist on gold for The Collapse, U.S. Mint.

[Fife]

If something really, REALLY shitty happened, would you rather have your top-most marginal safe money as $200,000 USD or a couple of hundred Krugerrands?

Brink of nuclear war in the Cuban Missile Crisis; people still taking US dollars. Breakout of World War Two; value of gold crashes by 50%.

Neither of those events were shitty enough to kill Unca Sugar. Maybe nothing ever will be shitty enough. Maybe.

Don't know.

[Speaker to Animals]

The main reason the USD is a huge reserve currency is all that gold. Nobody gives a shit about whatever nebulous 'security' we create. Nations keep wealth in USD because they know, in a pinch, we can liquidate the gold to pay off that massive debt.

But once we go there, the USD will go the way of the pound sterling. Make no mistake. The world will switch to the Euro and the Yuan.

Nothing to do with gold, nations keep wealth in USD because they know, in a pinch, you are more likely to pay than anyone else, because you are more wealthy and secure than any other nation, and the rule of law and those who enforce it, that keeps the whole thing humming. You can't have a free market is everyone can steal your shit with no threat of reprisal, when your markets are secure, they thrive.

It has everything to do with gold. There does not exist a reserve currency where the nation does not sit on a massive gold reserve.

[DBTrek]

Neither of those events were shitty enough to kill Unca Sugar. Maybe nothing ever will be shitty enough. Maybe.

Don't know.

Ask GCF.
He knows.
He knows everything.