DBTrek wrote:Bank runs being able to deplete the foundation of your currency is less efficient than that not being possible. What about that requires further proof?
Wait, what? Bank runs don't happen because the currency is tied to gold. What do you think caused the recent bank run in Greece? The euro is fiat too.
Bank runs don’t happen because a currency is tied to gold, but they do result in gold being depleted when your currency is tied to gold.
And when your currency is tied to a commodity that is now entirely in private hands and circulating (or not) in a manner completely opaque to your view, your currency just imploded.
While we are talking about your lack of historical evidence, Nixon's suspension of gold convertibility until the Breton Woods agreement was reformed led directly to the stagflation of the 1970s. Breton Woods was never reformed to remove the exploitative provisions that allowed the French to do what they were doing, and the result was the transition to the global fiat system in which currencies are floated on currency exchanges that we have today. To be fair, I think it was only one of the causes, with supply shocks (especially oil) representing another large factor, but giving the government the ability to flood the money market with intrinsically worthless dollars creates quite the incentive to generate inflation -- and that they did, in spades.
We didn't dump it because it was "inefficient". We dumped the Breton Woods agreement because the French were abusing it to clear out our national treasury. Then, after it was never reformed, we all got saddled with a globalist system based on fiat currencies floated on forex markets.
DBTrek wrote:Bank runs don’t happen because a currency is tied to gold, but they do result in gold being depleted when your currency is tied to gold.
And when your currency is tied to a commodity that is now entirely in private hands and circulating (or not) in a manner completely opaque to your view, your currency just imploded.
Bank runs are not related to fiat or gold. The damage of a bank run is related to the fractional reserves of that bank being depleted, and them being left with no money behind the loans that they issued.
I’ve demonstrated the fatal flaw of bank runs when a currency is tied to a commodity like gold, and have now been told twice that gold doesn’t *cause* bank runs.
No, you really haven't. You made a lot of assertions that people have shown to be false, and then acted perplexed why anybody would question your evidence-free proclamations.
Speaker to Animals wrote:No, you really haven't. You made a lot of assertions that people have shown to be false, and then acted perplexed why anybody would question your evidence-free proclamations.
As opposed to the guy relying completely upon unspecified “historical evidence” - which also favors my argument.
The historical evidence being: while we were on the gold standard, we enjoyed the highest standard of living relative to the rest of the world in our nation's history.
