America's default, in Russian. - page 28
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"The almost hysterical aversion to the gold standard is the point that unites statesmen of all stripes.
...
Deficit financing of public expenditure is just a way of confiscating wealth. Gold is an obstacle to this dishonest process. It stands in defence of property rights. Whoever understands this will have little difficulty in understanding the reasons for the strong aversion of the "statists" to the gold standard" (c) Alan Greenspan "Gold and Economic Freedom" 1966.
I.e. if Greenspan had been listened to back in 1966 there would have been no budget deficit in the USA, no near default and this thread would not have happened either.
Don't think of Greenspan as Cassandra. There has never been a man in the world who is not wrong. The "the whole world is a stupid bastard and one man is a wise man, a hero and a visionary" model is a fairy tale.
Don't think of Greenspan as Cassandra. There has not yet been a man in the world who is not wrong. The "the whole world is a stupid bovine and one man is a wise man, a hero and a visionary" model is a fairy tale story.
Well, he wasn't wrong back then in 1966. And he's not the only supporter of the gold standard. So there is no need to twist things around.
It was not hard to guess what uncontrolled printing of unsecured money would lead to. Paper money first appeared in China, and was initially very widespread compared to gold, silver and copper money, as one piece of paper was worth several coins. Then, when the issue got out of hand due to uncontrolled paper production, the economy collapsed. The next time the same thing happened in France, when the king was advised by a scoundrel named J. Lowe to issue banknotes. In other words, at first everyone is happy and laughing, because there is enough money for everyone, the exchange of goods is increasing and is no longer held back by a shortage of precious metals, liquidity is on the rise and then the economy collapses.
As a result, after some bumps in the road, one came to the conclusion that treasury bonds to paper money were necessary.
Incidentally, during the Great Depression only the stock market burst, and the US dollar was not subject to inflation because it was backed by gold. The stock market burst because there was uncontrolled emission, accompanied by a boom in "economic indicators".
I.e. history is repeating itself. As before, the US has figured out that it is possible to print as much money as needed. Only the gold standard gets in the way. Treasury obligations in the form of precious metal backing were abolished. And all at once everything went well. Sit at the Fed and adjust interest rates as the situation warrants. Money was being printed, the economy was "growing", GDP was through the roof. Everyone is happy, everyone is laughing. It will end up with the same result as all other bubbles.
For that reason no Nostradamus was needed to understand that those who own gold are not afraid of any economic crisis.
In the meantime no one is stopping the U.S. from saving the U.S. and putting its money into the U.S. dollar.
The gold standard system gives an undeniable competitive advantage to countries that have a gold mining industry! And today's world is a world of intelligence, a world of derivatives.
There is no advantage to the gold mining industry for the simple reason that the cost of producing gold is very high. It is more profitable to invest in gold that has already been mined and refined. Most of the gold deposits are located in third world countries.
A case in point is the "Gold Rush" in the USA, which for most miners found nothing but hopeless poverty and their own tomb in Eldorado. Only liquor dealers, saloon-owners, casinos and purveyors of food, clothing, weapons and gold-mining tools etc. made money.
Today's world is a world of political morass, energy wars, bubbles, drug addiction, crises, etc. The intellectual world seems to have completed its triumphal march back in the 20th century.
However, no one forbids the urgent rescue of the US and investing your hard-earned money in quid.
The world has changed in half a century. The world is changing all the time. There are no eternal truths in economics.
That's all well and good, but gold goes up in value only in times of crisis and inflationary shocks. During periods of economic growth gold goes down in value. And periods of economic growth take longer.
I gave in to the provocations of some irresponsible individuals and did not separate the wheat from the chaff:
1. The world currencies as the currencies in which world trade takes place, world reserves are formed, and settlements for key commodities have existed for over 200 years. For example, from the mid 19th century until WWII, it was the British pound. From World War II to the present day, it was the US dollar. Since the advent of paper money, gold cannot fulfil this role. Oil cannot be quoted in gold today and states cannot settle accounts with each other in gold coins. And there is no alternative to the dollar at the moment, SADLY.
2. The gold standard is a way of determining exchange rates. It has nothing to do with world currency. The dollar was a world currency even during the gold standard era, but its exchange rate was determined through gold. Therefore, if the gold standard had survived until today, there would BE NO FOREX. Because forex is the alternative to the gold standard.
P.S. If the Gold Standard had existed until the seg day, not only would this thread not exist, but this forum would not exist either.
Even if the gold standard were to return (fiction), the dollar would still be the world currency - oil, gas and GOLD are quoted in dollars. Settlements between countries, banks and companies in different countries are made in dollars.
A bank in England cannot settle with a bank in Brazil for 36 kg of gold. A Norwegian corporation cannot buy goods from a company in China for 72 kg of gold. This is the world's currency.
And the exchange rate mechanism is either forex or the gold standard.
FAGOTT:
Therefore, if the gold standard had survived until today, FOREX would NOT have existed. Because forex is the alternative to the gold standard.
P.S. If the Gold Standard had existed until the seg day, not only would this thread not exist, but there would not be a forum either.
And no one would have lost anything. There would be no lost deposits, no homegrown Rockefellers until the first margin call, etc.
And the most important thing would have been that the Pindos lived within their means and were not pandered to.
And no one would have lost anything from that. There would have been no lost deposits, no homegrown Rockefellers until the first margin call, etc.
And, most importantly, the Findos would live within their means and not be pissed off.
Well, you have to apply the subjunctive mood to history - the pindos were showing off even under the gold standard. And the emission financed scientific and technological progress and information technology around the world by covering the budget deficit. And the budget deficit and emission have always been a sin, the US, the USSR, Norway, England, etc.
Guys, can USD deposits be converted to AUD deposits? What are your views?
Of course. And translate the historical data into Excel. To be on the safe side.
BRICS moving away from the dollar
The main economic event in China's Hainan is the signing of a financial document. The five countries have signed their willingness to pay in currencies other than dollars. The BRICS countries will now be able to give loans to one another in their national currencies.
Quote:
"The U.S. understands that the era of the dollar is nearing its end. Why does China need dollars? Within China, the yuan is in circulation, in many Asian countries the population also prefers the yuan. Therefore, there are almost 3-3.5 billion people who can buy any goods and services with yuan and they do not need USD for anything, the expert says. The situation is the same in India and countries where Indians live, which is 1.5-2 billion people who use rupees in trade."