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

      NFLX Netflix stock, with a solid top of range breakout, from Stocks to Watch at https://stockconsultant.com/?NFLX  
    • Stocks4life
      Breakout and Swing Stock Ideas

      By Stocks4life · Posted

      NFLX Netflix stock, with a solid top of range breakout, from Stocks to Watch at https://stockconsultant.com/?NFLX  
    • analyst75
      At 45, is it a right choice to migrate to Canada?

      By analyst75 · Posted

      It depends. If you have lots of money that you can buy a house without a loan and if you don't have any parents to sponsor then it is a good idea. Otherwise it might be a bad idea depending where in Canada you are heading to. I earned a good middle income in my home country and I migrated to Vancouver 5 years ago at the age of 35. I had to start right from the bottom, lowest of the low.. Now i am finally earning a middle income in Canada but I still cannot afford to buy a one bedroom apartment. Having left behind friends, family and home, most of the times I think it is not worth it.   In short, do not migrate if you already have a good life in your home country and you are happy. Only migrate to Canada if you really have to leave your home country say there is a war or something really bad. Discrimination still exists here and its really tough for newcomers unless you are super rich. Good luck. David Chong, Quora  
    • analyst75
      Use ChatGPT? Protect Yourself Now

      By analyst75 · Posted

      This is bigger than the internet. Bigger than mobile. Bigger than social media.   While everyone was distracted by stock market fluctuations and political theater…   Most people have NO IDEA what just happened last week with ChatGPT.   Their new memory feature allows ChatGPT to remember EVERYTHING about you across all your conversations.   Think about that for a minute...   While most tech companies have been collecting mere breadcrumbs about you - your likes, your clicks, your browsing history - OpenAI is now collecting the most valuable dataset in human history: your complete psychological profile.   This is Zuckerberg x 5,000.   The more you use ChatGPT, the more it understands you, becoming a supercharged reflection of yourself that improves at an exponential rate.   Are you a regular ChatGPT user?   Consider whether it’s time to turn off the “you can train on my information” feature. To prevent your data from being used for training while still using the memory feature:   Disable Model Training: Navigate to Settings > Data Controls. Toggle off "Improve the model for everyone". Manage Memory Settings: Go to Settings > Personalization > Memory. Here, you can: Turn off memory entirely. Delete specific memories. Use Temporary Chat for sessions that won't be saved or used for training. Now the investment implications…   Why This is Bigger Than You Think Consider this: the relationship between humans and ChatGPT is evolving beyond a mere tool.   People are now treating these AI assistants as friends, confidants, and even romantic partners.   I'm not making this up - there are already documented cases of people ending real human relationships to pursue “connections” with their AI companions.   A viral Instagram meme shows a person going through life with a glowing, featureless humanoid figure - representing ChatGPT - as their companion.   The post has over 1.1 million likes and comments like "Bro ChatGPT is like my best friend. Ain't even ashamed to say it" with 25,000 likes.   But here's where things get really interesting for investors and entrepreneurs...   Three Things to Watch For starters, hardware is the next big thing for the big players.   The iPhone form factor is dead.   It hasn't meaningfully changed in nearly a decade. The next evolution in hardware will be designed specifically to interface with these AI companions.   OpenAI is already working on hardware with Johnny Ive, the legendary designer behind the iPhone and iPod. But you can’t ignore Elon Musk’s edge here.   So what does all of this mean for you?   The companies that control the personal AI relationships will be worth trillions. OpenAI and Elon Musk will have the coziest moats. We're witnessing the birth of a new internet - one built on agents that can communicate with each other across platforms. Google's new agent-to-agent protocol allows AI agents to work together without sharing internal memories or tools. The hardware companies that create the perfect interface for these AI companions will dominate the next decade of technology. And almost nobody is talking about what this means.   My prediction? Within five years, most people will have a personal AI that knows them better than anyone else. And they will interact with it in ways that seem foreign today.   (And, yes, it will almost certainly have dystopian elements.)   In the meantime, the biggest gains won’t come from household names. And, right now, James is seeing a prime opportunity to invest in the most under-the-radar plays in AI…   For dirt cheap. By Chris C. Source: https://altucherconfidential.com/posts/use-chatgpt-protect-yourself-now
    • Stocks4life
      Breakout and Swing Stock Ideas

      By Stocks4life · Posted

      KBH KB Home stock, nice day and rally off the 50.82 support area, from Stocks to Watch at https://stockconsultant.com/?KBH      
×
×
  • Create New...

Important Information

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

  I accept