Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Tradewinds

Fiat Money

By Tradewinds, in General Discussion

Recommended Posts

Tradewinds    12

Tradewinds
Posted

Let's imagine that the U.S.A. wanted to back the currency with gold. Let's use M2 money supply to estimate how much money is actually in circulation. M1 doesn't include bank reserves. M2 is the standard used to estimate how much money is actually in circulation.

 

Money supply - Wikipedia, the free encyclopedia

 

M2 for July 2011 was 9313.6 billion dollars.

 

FRB: H.6 Release--Money Stock and Debt Measures--August 25, 2011

 

But here is something more interesting: The total U.S. debt is 54 trillion dollars.

 

U.S. National Debt Clock : Real Time

 

A trillion has 12 zeros behind it.

 

trillion - Definition of trillion at YourDictionary.com

 

So just the U.S. debt alone is bigger than the entire M2 money supply. So what should we base the needed gold reserve on? M2 money supply? The total U.S. debt? The total U.S. debt plus the M2 money supply? How much physical gold should there be in reserves? Let's use a really, really small number. Let's say, 20% percent of M2 money supply. That's about 1,863 billion dollars.

 

Okay, so we need 1,863 billion dollars worth of gold. How are we going to pay for that gold? Let's see, we could draft U.S. citizens to work in the gold mines for long enough to cover their share of the gold reserves. Hey, that's a great idea. I've just solved the problem of how to acquire all that gold. Everyone reading this, please phone and/or write your local, county and national political representatives and tell them that you want to be drafted to work in the gold mines to contribute your share to the gold reserve.

 

Or we could just buy the gold. Oh wait! Just a second. How are we going to buy the gold? Where is the money coming from? Okay, let's see. We could raise taxes by 1,863 billion dollars. That will bring in the revenues to buy the gold. Okay, this is a great idea. Everyone reading this, please phone and/or write you political representatives and let them know that you want your taxes to go up by 1,863 billion dollars. Okay, problem solved.

Share this post

Link to post
Share on other sites

Jasmine121    10

Jasmine121
Posted

hiiii...........

.....................

Folks receive it, for the reason that they trust in its quality. They have confidence the $20.00 they appropriate has a certain buying force which will remain handy for a long time of time.

 

They'll quit tolerating fiat cash if the inhabitants present loses confidence in it.

................

Share this post

Link to post
Share on other sites

zdo    20

zdo
Posted

paraphrasing

Faber To Shiller: ?You Keep Your U.S. Dollars And I?ll Keep My Gold? | Zero Hedge

 

In response to a question from Yale University’s Robert Shiller querying the recommendation to hold gold, Marc Faber said: “I’m prepared to make a bet, you keep your U.S. dollars and I’ll keep my gold, we’ll see which one goes to [worthless] first.” Shiller, who is the co-creator of the S&P/Case-Shiller index of property values, responded "I'm inclined to think gold prices after this crisis might return to a lower level" ...

 

I'm confused :confused: after what crisis ???

Share this post

Link to post
Share on other sites

SIUYA    11

SIUYA
Posted (edited)

 

I'm confused :confused: after what crisis ???

 

the new normal crisis - until we find another crisis.

 

One thing about Gold that Faber makes that many forget - it too will likely massively decline, it just wont go to zero

"“I’m prepared to make a bet, you keep your U.S. dollars and I’ll keep my gold, we’ll see which one goes to zero first.”

 

Now if the SHTF - none of this is relevant - a can of baked beans and a squirrel for dinner might be more valuable than gold.......

If the SHDoesNotHTF then diamonds are the way to go. Easier to transport, people with money and chicks love them

 

I saw some folks saying guns and ammo will be worth a lot - yep - not much thought gone into that one - imagine scenario....

SHTF - Man A buys guns from Man B for the price of his daughter, 5 goats and a car . ...Man A shoots man B and takes said possession back.

Its valuable not because you want to sell it, its valuable cause no one else has one :doh:

Edited by SIUYA

Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
Go To Topic Listing

  • Topics

  • Posts

    • Stocks4life
      Breakout and Swing Stock Ideas

      By Stocks4life · Posted

      CVNA Carvana stock, nice top of range breakout at https://stockconsultant.com/?CVNA
    • Stocks4life
      Breakout and Swing Stock Ideas

      By Stocks4life · Posted

      GDRX GoodRx stock, good day, watch for a bottom range breakout at https://stockconsultant.com/?GDRX
    • HFblogNews
      HFMarkets (hfm.com): Market analysis services.

      By HFblogNews · Posted

      Date: 14th February 2025.   Can The NASDAQ Maintain Momentum at Key Resistance Level?     The price of the NASDAQ throughout the week rose more than 3.00% to bring the price back up to the instrument’s resistance level. However, while taking into consideration higher inflation, tariffs and the resistance level, could the index maintain momentum?   US Inflation Rises For a 4th Consecutive Month The US Consumer Price Index, or inflation, rose for a 4th consecutive month taking the rate even further away from the Federal Reserve’s target. Analysts were expecting the US inflation rate to remain unchanged at 2.9%. However, consumer inflation rose to 3.00%, the highest since July 2024, while Producer inflation rose to 3.5%. Higher inflation traditionally triggers lower sentiment towards the stock market as investors' risk appetite falls and they prefer the US Dollar. However, on this occasion bullish volatility rose. For this reason, some traders may be considering if the price is overbought in the short term.   Addressing these statistics, US Federal Reserve Chair Jerome Powell acknowledged that the Fed has yet to achieve its goal of curbing inflation, adding further hawkish signals regarding the monetary policy. Other members of the FOMC also share this view. Today, Raphael Bostic, President of the Federal Reserve Bank of Atlanta, stated that the Fed is unlikely to implement interest rate cuts in the near future. This is due to ongoing economic uncertainty following the introduction of trade tariffs on imported goods and other policies from the Republican-led White House.   Most of the Federal Open Market Committee emphasizes additional time is needed to fully assess the situation. According to the Chicago Exchange FedWatch Tool, interest rate cuts may not start until September 2025.   What’s Driving The NASDAQ Higher? Earnings data this week has continued to support the NASDAQ. Early this morning Airbnb made public their quarterly earnings report whereby they beat both earnings per share and revenue expectations. The Earnings Per Share read 25% higher than expectations and Revenue was more than 2% higher. As a result, the stock rose more than 14%. Another company this week that made public positive earnings data is Cisco which rose by more than 2% on Thursday. Another positive factor continues to be the positive employment data. Even though the positive employment data can push back interest rate cuts, the stability in the short term continues to serve the interests of higher consumer demand. The US Unemployment Rate fell to 4.00% the lowest in 8 months. Lastly, investors are also increasing their exposure to the index due to sellers not being able to maintain control or momentum. Some economists also increase their confidence in economic growth if Trump can obtain a positive outcome from the Ukraine-Russia negotiations.   However, during Friday’s pre-US session trading, 80% of the most influential stocks are witnessing a decline. The NASDAQ itself is trading more or less unchanged. Therefore, the question again arises as to whether the NASDAQ can maintain momentum above this area.   NASDAQ - News and Technical analysis In terms of technical analysis, the NASDAQ is largely witnessing mainly bullish indications on the 2-hour chart. However, the main concern for traders is the resistance level at $21,960. On the 5-minute timeframe, the price is mainly experiencing bearish signals as the price moves below the 200-period simple moving average.   The VIX, which is largely used as a risk indicator, is currently trading 0.75% higher which indicates a lower risk appetite. In addition to this, bond yields trade 6 points higher. If both the VIX and Bond yields rise further, further pressure may be witnessed for index traders.   Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Michalis Efthymiou HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • Stocks4life
      Breakout and Swing Stock Ideas

      By Stocks4life · Posted

      LUNR Intuitive Machines stock watch, attempting to move higher off 18.64 support, target 26 area at https://stockconsultant.com/?LUNR
    • Stocks4life
      Breakout and Swing Stock Ideas

      By Stocks4life · Posted

      CNXC Concentrix stock watch, pullback to 47.16 triple support area with bullish indicators at https://stockconsultant.com/?CNXC
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.

  I accept