Our rates are low now and are expected to rise....intentionally.
A World In Debt
- Thread starter imkruzen
- Start date
Our rates are low now and are expected to rise....intentionally.
You can try and twist definitions but gold does not have the liquidity of our dollar.
So are potatoes.
Now you're getting it! Phew! I was beginning to think you might be sporting a small scar between you're eyes
Sure it is if it's a minted coin. Currency is whatever the government defines as currency. Gold and silver make good currency because you can't print it, so you can't create these artificial bail outs without shifting actual monetary value.
I got nothing against paper money, except for the fact that it's printable. I think we would be ok if paper money was strictly backed by gold and silver and/or other precious metals not US dollars. Why the hell would you back your currency with something that can be created so easily, it devalues your currency everytime someone effortlessly creates currency (read giving a mortgage, loan, etc).
What gives our dollar liquedity? The fact that it's easily divisible? Like say a less precious metal like silver?
There is nothing wrong with the dollar as mentioned before. It's the fact that the creation of the dollar is not linked with anything of value, so how do you prevent idiots from printing into worthless oblivion? You can't unless it's value is tied to something that will be more stable in quantity/supply.
I think we can all agree that the real wealth in this world is how much land you own, and your ability to create/sustain energy (oil, food, etc). These are the things we need to live, and need to have so we can make more food, mine more materials, and build things. These things are not as packageable as gold, and that's why it'sa good store of value.
You can't walk in to future shop with gold and buy a tv.
Gold isn't accepted as currency so how can it currently be one? In order to turn gold into it's full value in anything else you need to find someone looking to purchase it.
Your inability to understand this has led me to believe it is you who is not very bright. I will help you out here.
Currency- a medium of exchange used to buy and sell goods. Now, this needs to be commonly accepted.
Funny you would ask about the liquidity of paper money.......the liquidity of an asset is generally defined as how easily it can be converted into money.
So gold CAN be, and believe it or not has been, used as a currency. But as of this very moment, in this country, gold is NOT a currency. Gold is NOT generally accepted as a form of payment.
Personally, if i present you with a bill for $10,000, I will not accept $10,000 worth of gold as payment. I may accept a larger value of gold to make it worth my hassle, but my bill collectors accept Canadian dollars only.
The Canadian Silver Maple has a face value of $5. It is accepted as a $5 coin. So yes Canada can and does use precious metals as a currency. Is that too complicated for you to comprehend?
Nowhere in my post did I mention that gold was accepted as currency in Canada. I said that our currency should be backed by it. And that it is suitable for use as a currency due to it's inherent properties. Your argument is absolutely moronic. If I walk into future shop and try to pay with Russian Rubles (which are a currency in Russia), I will also get rejected.
I just gave this explanation to a brick and he understood it in half the time it's taking you.
well everything has to move into equilibrium right whether it's domestic or world economy.
You asked what gave money liquidity, my post was to show how it is more liquid than gold.
Instead of calling you an idiot for not knowing the meaning of liquidity I tried to give you an answer. When you didn't understand what I ment by it you didn't ask me to clarify, you just attempted to insult my intelligence.
Mayhem
Member
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How we can live in a world without money, politics, poverty crime free and abundance for everybody.
How we can live in a world without money, politics, poverty crime free and abundance for everybody.
imkruzen
Well-known member
The FED said they will likely keep rates at ZIRP until 2014. Economic conditions in the US indicate a slowing economy.Why are they going to rise? They don't raise the rates when they are in recession or have a slowing economy. So an explanation would be helpful as to why they would rise. What economic condition at this time will cause a rate hike?
imkruzen
Well-known member
Neither are CDN dollars in US. It's treated like gold, can be exchanged else where for local currency. Utah accepts payments in gold and silver coins. There are a growing number of states that are going this route. FED up with the FED debasing IOUs.
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imkruzen
Well-known member
What gives Gov issued paper value?
imkruzen
Well-known member
What equilibrium are you talking about? We are talking about why rates can rise by Gov. initiative or rates rise on open markets where the local Gov. doesn't desire it.
imkruzen
Well-known member
and the question arises, why didn't the money gurus and economic academics raise rates when there was irrational exuberance in the economy? Greenspan called it himself that? They just kept rates low? Why? There is a reason, these people in those positions know a bit about about economics, maybe even more than you.
I'm still looking for an answer to the reason of unintended interest rates rising, especially when a country is in recession.
