Redefinitions From The Left

[Speaker to Animals]

No, he's not right. If it were, the the pound Stirling would have remained a reserve currency after they sold off so much gold for a huge opportunity loss.

History bears out this simple fact: no gold no reserve currency.

Not since 1971, learn some history sometime. The USD's value is not pegged to is gold reserves anymore bro, get with the times, Bretton Woods is dead, and it isn't coming back.

Learn to read what people post before saying stupid shit that nothing to do with their argument.

[StCapps]

Learn to read what people post before saying stupid shit that nothing to do with their argument.

Gold reserves don't mean jack now, if you knew any recent history, you would know this, but you are too busy prophesying the doom of America, to do that, apparently.

[Speaker to Animals]

Then why does every reserve currency come from nations sitting on a fuck ton of gold they can use to pay their sovereign debts, and nations who did exactly that (looking at you, UK, 1999 to about 2001, in probably the worst-timed gold sale in modern history) lose status as major reserve currencies?

The correlation is clear. It's doubly correlated too: reserve currencies come from nations with large gold reserves; nations that sell off much of their gold reserves to pay debts lose reserve status on their currencies.

The only reason nations buy our debt and store their national reserves as USD is because they know we could make like the UK and pay off the debt by liquidating our gold reserves. But once we do that, the USD would no longer represent the safest place to store your national treasury.

But you have no real argument to explain away the plain facts I laid out here.

[SuburbanFarmer]

I would argue we kind of still have a gold standard. The USD is the primary reserve currency of the world. The United States is sitting atop the largest gold reserve in the world. The next highest gold reserves are Germany, Italy, France, and China. The top three reserve currencies are the USD, EUR, and the RMB (China's Yuan). The USD and EUR are floated, but the RMB is totally fixed and managed. The only unifying factor between the three is that the nations that issue them sit on the largest gold reserves in the world. The UK sold off so much of their gold reserves that they are no longer a factor.

If you still don't believe it, then run a little mental exercise by imagining what exactly would happen to the USD if the US announced it had been quietly selling off our gold reserves for the past two decades and most of it was now gone. The USD might be ostensibly separated from our gold reserve, but I guarantee you would see the USD fall relative to other floated currencies within seconds. Like bigly.

They won’t announce it, but it’s already happened.

[Fife]

When's the next video tour of Ft. Knox being set up for Fox News?

The country needs a big shot of confidence right about now. Send Trump and Geraldo in together for some candid shots in front of our fat stacks. The public will love seeing all their reserve gold in HD. Can't wait.

[TheReal_ND]

hahaha

[Smitty-48]

When's the next video tour of Ft. Knox being set up for Fox News?

The country needs a big shot of confidence right about now. Send Trump and Geraldo in together for some candid shots in front of our fat stacks. The public will love seeing all their reserve gold in HD. Can't wait.

How do you know it's really all gold, just because you see it on TV? That couldn't be faked? What if only the bars on top are gold, but underneath it's all lead? Geraldo is going to count every bar for you, while he tests it at the same time? How do you know Geraldo isn't in on the conspiracy too?

[Hanarchy Montanarchy]

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?

If something REALLY shitty happened, I would rather have the damn salt.

[Fife]

TL;DR quick rundown of the debate level of MHF monetary policy discussions:

[Speaker to Animals]

TL;DR quick rundown of the debate level of MHF monetary policy discussions:

The last one might be a keeper.