The US dollar is worth more than Gold to Americans

Economics Economics Questions
1

I know that most of you here love the gold theory. But I think that despite gold being so great as a universal medium of exchange, Americans are better off using the US dollar.

To better understand my point we need to go back to 1945. This crucial date gave America an advantage of a life time. After WWII American emerged as the political, economic and military leader of the free world and the US dollar was to be use as the international medium of exchange.

Now, America has a monopoly in the issuance of US dollars. This makes it easier and cheaper for Americans to compete and trade in the international arena. Why would anyone ever even think of using Gold as a medium of exchange???

Well in my case I would keep things the way they were before nixon abolished it in 1971. Only because since that day inflation threatens the future of the US dollar.

2

You might be right but I still own a bunch of gold.

3

Wrong, if what you are saying is true then there would not have been a reason for government thugs to raid the offices of the Liberty Dollar, confiscate the silver and hold indefinitely the principals that built it (The last I had read, the fellow that is Canadian has been held without bond or trial for over 2 years). The fact is that the position of the dollar is deteriorating and the US government is becoming more violent in its attempts to maintain a hold on their currency monopoly.

And if gold and other precious metals were so worthless and undesired, then why not remove the “Capital Gains” taxes on these things.

If you let the market sort out the best alternatives you would find that the Federal Reserve Note is not good money because it is only backed by violence.

4

I invite you to read my post again…you seem to be writing about something else.

5

  1. America came out of WW2 on top, because europe was burned to the ground, and america was not. america would need some pretty bad governing to undermine such an advantage, they had a good go it seems, but even so…

  2. A)Now, America has a monopoly in the issuance of US dollars. B)This makes it easier and cheaper for Americans to compete and trade in the international arena. Why would anyone ever even think of using Gold as a medium of exchange???

explain how A entails B.

6

Is this a joke?

Why do you think? Because when you create massive amounts of paper money, it will eventually become worthless and WIPE OUT MIDDLE CLASS WEALTH.

I thought this was common sense at this board?

7

Because they don’t want their wealth stolen.

8

Although it seems obvious to me I will explain:

Fact: Only the US makes US dollars. I dont think you will ask me to explain this fact.

Fact: Everyone else needs US dollars to buy good/services in the international market. I don’t think you will ask me to explain this fact either.

FACT: Because everyone needs to buy US dollars they MUST trade with the US to obtain US dollars so they can trade with third parties.

FACT 2: This monopoly of US dollars gives Americans a huge trade advantage. The US in general trades with lower transaction costs and real price advantage of 1 to 1.

That is why I think the US is better off under this international order of things than using gold as currency.

AND THE ONLY THING THAT CAN UNDERMINE THIS ADVANTAGE IS ALREADY UNDERWAY AND WE ALL KNOW ITS NAME… “INFLATION.”

Hope this explanation helps.

9

What wealth would that be???

We owe everything we use to banks

10

hope you enjoy the debate now that your cards are on the table

I’ll check in later on the quality of the response to you.

11

A thief is better off than his victim after a successful robbery.

Inflation is the reason that system broke down. Why exactly do you see an unsustainable system as the correct approach?

12

I don’t think so. I think that any competing currency backed by something of value will supplant any fiat currency backed by violence. I think that the government understands this completely and believes as I do that Americans will change currencies quickly and therefore must use violence to eliminate the competition.

13

No disrespect but that is just rhetoric talk.

14

Whatever they value.

?

15

You are right, but I am not suggesting the system to continue. I simply pointed out that Americans are better off by using the US dollar because it is worth more than gold. Anyone can mine gold, only one can make US dollars. To keep this going the printing press must be turned off instead of working double shift under Bernanke.

16

How do you determine what I value a US dollar at compared to gold?

17

Explain to me how the relevance of your question to the topic being discussed.

18

You said the US dollar is worth more than gold. Maybe to you, but not to me. That’s my point. How does your statement “Americans are better off by using the US dollar because it is worth more” make any sense when the US dollar is not necessarily worth more?

19

Read my post again. I refer to Americans as the whole nation. What is worth to you and me is irrelevant and is not the topic here. But lets follow up. Let me assume you value gold more than your dollar. Who cares??

I do know that despite your taste for gold or high preferences for it in an intellectual point of view…when you go to buy your plasma tv and your nice car you pay with dollars. If a day comes when you have to pay for your products in gold…trust me…you will pay more in real terms.

As an investment, hedge against inflation and stuff like that…sure why not…but as a currency…we all lose.

20

This is not universally true.