OT: Amero Hint?

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If you face the facts, better yet, if you know them, you can't help but see that having gold backing a currency today is simply a nutty idea. There ain't enough gold in the world to back up the amount of money in the world today. It's not possible to make transactions around the globe with gold. Gold is not something that has any value in today's financial system. People that think otherwise just don't know how things work. Today what money has become is a just a bunch of electrons that shoot all over the world and add and subtract to accounts which are nothing but financial abstractions. Gold, it's good for teeth and electronics and jewelry, that's about it.
Hawke
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<snip>

<snip> The problem of governance including currency in a nut shell.
With honest systems and people anything works, without honest systems and people nothing works.
A closely allied problem is that the bigger the systems are, the harder it is to keep them honest, find enough honest people to administer them, and the longer it takes for then to self destruct, and thus the more damage they can do overall.
Unka' George [George McDuffee] ------------------------------------------- He that will not apply new remedies, must expect new evils: for Time is the greatest innovator: and if Time, of course, alter things to the worse, and wisdom and counsel shall not alter them to the better, what shall be the end?
Francis Bacon (1561-1626), English philosopher, essayist, statesman. Essays, "Of Innovations" (1597-1625).
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snip----

The harsh reality is that gold is not easy to market. I have years of experience in that field, and at one time was accepted as a reliable and honest merchant and refiner of gold and silver. I could move these metals at spot price with no difficulty. That is not possible today. I have been away from the game for 15 years, and am no longer recognized as a refiner. I can sell metals, but only at a loss. Unless you are properly connected in the precious metal industry, it's not all it's cracked up to be.
One thing in favor of securing one's assets is that gold, historically, has always been valuable. I expect it always will be, if for no other reason, it has qualities that endear it to industry and medicine, to say nothing of the psyche of people that think it's valuable, so it is. :-)
Harold
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It sounds like an interesting business you were in, Harold, the details of which are basically unknown to most of us.
As for the enduring value of gold, it's an issue that's really gotten complex in recent years. Small margins make a difference in a commodity whose trading and business is based on stability (gold being the extreme example), and there are so many ways that small margins are shifting in gold today that the whole house of cards is in real danger. The subject is much too complex for discussion here, and I only know what the financial insiders report about it in the financial press, but a lot of people are worried right now about gold. Like a lot of things in finance today, the small players, individuals who hold and trade gold, are riding a train run by big financial interests, and it's one they can't see and mostly don't understand.
You may have had some exposure to it; it's based on the gold carry trade, gold stocks, and gold futures. It's a bubble on top of a bubble, the underlying bubble being the multi-millennial irrationality in gold's market price.
Enjoy your retirement. d8-)
-- Ed Huntress
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I avoided the futures market, dealing strictly with the metals, and the spot price at the moment. I know as much about the stock market as I knew about fiat money! <g>
While there is turmoil in the gold market, I expect it will remain bold. It's a reflection on the instability of the dollar-----and is considered a good investment, even by those that may not normally be so inclined, when things get tough. While many have lost value in their investments, we have enjoyed an offset via the rising price of gold and silver.
My biggest concern is that it will continue to rise in price (note I did not say value). It is a reflection on the loss of value of the dollar, nothing more.
I spent more than twenty years of my life refining precious metals, including platinum and palladium. I also retorted a considerable amount of mercury, dental amalgam, in order to extract the silver. It was a hobby that got out of control, and was instrumental in closing the doors on my very successful, albeit humble, machine shop. It came at a good time, when I was totally burned out on machining. To this day, I do not take pleasure in running my machines.
Retirement, to me, has proven to have been an excellent decision. My only regret is that I didn't do so much earlier, although that was out of the question. Were it not for precious metals, I may still have been running those machines.
Thanks, Ed.
Harold
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snip-----
Here's a middling-sized bunch of words.
also snipped---
Thanks, Ed. That was more than adequate. I, at least, understand what is being discussed now.
Harold
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It wasn't 100% at the end. FDR took us off of the gold standard, paid citizens 80% at a forced sale to citizens and at 60% to foreigners, iirc.
If you look a it, gold redemption of script has been halted at times by various governments. Which means gold backed money may not be something you can rely on.
Wes
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wrote:

Be careful to distinguish "gold standard" (or "gold-backed") from "gold convertability." The latter types of standards have also been called "gold coinage standards." With gold standards, it doesn't matter much whether the gold backing is 100% or some fraction, as long as the controllers of the major currencies all agree about what it should be.
With some exceptions, most currencies haven't been convertible by individuals for 200 years. "Gold standard" really refers to a kind of tokenism used to set the relative values of different currencies, and the only gold trading is between authorized agents -- usually, central banks. That's what the whole developed worlds' currencies were based on under the Bretton Woods agreement. But the fact is that most major currencies were non-convertible throughout most of modern history. Convertibility is something that governments have turned on and off, mostly off, and almost always during and shortly after major wars. It has been impossible for any government to allow convertibility during times of economic stress, for hundreds of years. Their treasuries would be eviscerated if they tried.
Some of the gold bugs bring up the fact that even Alan Greenspan was in favor of gold standards, at least back in the mid-'60s. But he wasn't talking about convertibility. He was talking about using gold as a token for setting the relative values of currencies.
This is why I didn't want to get into a long discussion about the subject. d8-)
-- Ed Huntress
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F. George McDuffee wrote:

We've got to get back to the only true basis for currency:
Tulip bulbs!
David
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