To have today's politicians in charge of a monetary system, think it will be a solid base? — ssu

If the monetary system is backed by gold there is a limit to what the politician can do.

If the monetary system is backed by gold there is a limit to what the politician can do. — Nobeernolife

And do populist politicians have those limitations? Nope. Both Bernie and Trump wouldn't like it.

We have actually a great example of what in reality a gold standard would mean and look like in this World, not a hypothetical scenario where everybody is a libertarian and irresponsible regimes (and voters) wouldn't exist.

That's the Euro seen from INSIDE the Euro-system. It has functioned like a gold standard (inside the euro zone).

So when the Euro came (nearly) everybody was first really excited about it! Shrewd London City bankers understood that this wasn't for them. But otherwise the majority of European countries were for it. No more goddam competitive devaluations! No more currency risk with EU transactions and no more differences with interest rates as there's no country risk. Everybody will have THE SAME CURRENCY. Just like with a gold standard.

But what happened...

The Germans continued to have that awesome economy of theirs as earlier and the Greeks lied themselves into the system (with the help of the banksters, of course) and continued to have their weak economy, yet were now able to enjoy low interest rates in order to be as irresponsible as possible. And the irresponsible one's were especially the Greek elite. And hence who benefited from the system was Germany with Italy, Greece and Spain getting later into huge troubles. And so came the bailouts of the irresponsible ones. And yeah, only the stupid suckers followed the rules.

That would basically happen in a larger scale in a functioning gold standard: without the inability to devalue their currencies, the better economies would benefit and the weaker one's could use the devaluation injections.

And who would get it's ass kicked the most with a gold standard? The US. That's why the Russians just love the idea of a gold standard. It would be the end of the Superpower they think is out there to get them.



You think that those gold bullions in Fort Knox give you security? Nope! That gold would go there where the money transactions go, just like between Germany and Greece.

With a true gold standard, you simply couldn't just finance your forever wars, the most expensive and extremely inefficient health care system in the World and give your richest people tax breaks all the time. The economy likely would look more like the Mexican economy than the Canadian economy. Your infrastructure would be even worse. Your already not well functioning public sector would in even bigger dire straits than now when there's not that huge debt that you can just pile away like crazy.

And would people like Trump accept that? HELL NO!!! They would holler how the evil foreigners are stealing everything from the Americans! Make America Great Again!!!

But that's just a nightmare that won't happen. Now you can create all the debt in the world and have the central bank pay for it with the Fed adding those zeros on a computer screen. Now with over 5 trillion balance sheet. Perhaps 10 trillion dollars later?



Hence, better idea just have some gold in your investment portfolio for exactly these kind of times. All time highs in euros now.

So, another 2.3 Trillion just got injected into the economy, and lent to the FED.

Wow... guess what? The markets aren't really reacting.

:rofl:

The 2.3 Trillion isn't even mentioned on Bloomberg.com and hidden over at CNN.com

Just shows how rigged and corrupt the whole system is.

This was cathartic and bloody glorious - "A bunch of billionaires getting wiped out? Who cares?". The host's face of incomprehension is the most delicious thing ever.

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Although I would not call that "delicious", it(the guest speaker's narrative) is dead-fucking-on, nonetheless.

"As usual the major corporations are putting aside their copies of Ayn Rand and rushing to the nanny state to be bailed out. "

:fire:

That's the democracy America wants and the socialism that it has.

More on the terribleness of the American bailouts and the shape of the economy to come. By Mark Blyth, who is an economic GOAT.

Saw that one. :up:

I think we have had the dead cat bounce now (from -30% back up to -15% from the all time highs). But of course, does any fed supported asset prices reflect reality?