Ahh, now I think I'm getting somewhere, at least you agree there has been a fairly dramatic change in circumstances since coming off the gold standard! :clap:
I might leave this one for the duc!
Done.
jog on
duc
Ahh, now I think I'm getting somewhere, at least you agree there has been a fairly dramatic change in circumstances since coming off the gold standard! :clap:
I might leave this one for the duc!
I have found your posts very interesting, please continue.
Can you point out exactly which part of Barjons post demonstrates his 'lack' of historical knowledge!?Jon
.
Your lack of historical knowledge is lamentable.
This of course is exactly how paper money certificates, the precursor of fiat money, came into existence.
Goldsmiths, provided secure storage for gold deposited, charging a small fee, and issued paper deposit certificates that would later be redeemed in gold upon demand.
jog on
duc
Can you point out exactly which part of Barjons post demonstrates his 'lack' of historical knowledge!?
Have you considered a career in politics by any chance?
But his post had nothing to do with the origins of fiat money, that made me curious as to your reply. Why you chose to label his knowledge of the goldsmiths as 'lamentable'?On the origins of fiat money. The shift to fiat was in stages. The first stage was the issuance of a warehouse receipt for gold via the goldsmiths.
A career in politics? Such a slur upon my character.
jog on
duc
Jon
.
Your lack of historical knowledge is lamentable.
This of course is exactly how paper money certificates, the precursor of fiat money, came into existence.
Goldsmiths, provided secure storage for gold deposited, charging a small fee, and issued paper deposit certificates that would later be redeemed in gold upon demand.
jog on
duc
But his post had nothing to do with the origins of fiat money, that made me curious as to your reply. Why you chose to label his knowledge of the goldsmiths as 'lamentable'?
It makes no sense.
Quote:
I have also argued that, whatever system you have, it comes down to peoples TRUST in it. I would hazard a guess that if you and ducky pooled your gold resources and issued notes backed by that gold you would not get many shopkeepers prepared to accept your money in exchange for goods because they would not trust it (ignoring legalities). You could print whatever promises you liked on your notes and have the fact that you had the gold certified by the most eminent figures in the land and your money still wouldn't be accepted until people came to trust it
Ducky
of course it is, but that doesn't alter the point that it didn't "work" until people were prepared to trust it. Nor does it alter my contention that it is trust in the money system rather than the system itself that is important.
Jon
.............I can see from your various responses on this thread that you have difficulty with abstract theory. That is understandable, it is a problem for many.
I have no difficulty with abstract theory - I just don't don't like it getting in the way of the facts.
You provide some stats concerning 'Capacity Utilization' which are all well and good until you then lay the change squarely at the change in the money system without consideration for any other factors -
increasing globalisation being one.
Within the whole capitalism equation it's not surprise to see shifts in the capital provider, producer/manufacturer ratio.
In any event my argument with you was not about the relative merits of the money systems, but your assertion that the purpose of fiat was to rob the State's citizens.
I do not believe that.
You may call it my safety blanket faith - in fact it is an understanding of how Government works which seems to have escaped you entirely.
It is a poor debater who resorts to belittling his opponent - you must do better
Surely the point is quite simple.
If the banksters in cahoots with the govt can simply print worthless paper willynilly under the guise of "a useful economics tool" (easy option), then the temptation to use the tool as opposed to dealing with economic problems in a fit and proper manner (hard option) they will take the easy option every time. It is in fact fraudulent because they are devaluing everyones position at a stroke.
You really should consider a career in politics!Oh but it does, here is the original statement from Jon:
As you see, Jon suggested that if NT & myself wanted to market our own money, that building the 'trust' necessary would be difficult.
History demonstrates that this is exactly how fiat money was initiated and progressed via government propaganda & coercion to where we are today with fiat money unbacked by anything save 'faith'.
jog on
duc
Surely the point is quite simple.
If the banksters in cahoots with the govt can simply print worthless paper willynilly under the guise of "a useful economics tool" (easy option), then the temptation to use the tool as opposed to dealing with economic problems in a fit and proper manner (hard option) they will take the easy option every time. It is in fact fraudulent because they are devaluing everyones position at a stroke.
1. I have argued that they are both just money systems and both workable. It is not the fiat system itself that is at fault, but the ABUSE of it.
2. Now you may argue that a gold system cannot be abused, but can't it? After all, you could fiddle the books if you were so minded and never have enough gold in the vaults to meet the promises on your notes.
3. You may similarly argue that abuse is inherent in a fiat system, but is it? After all you can provide accounting checks and balances if you are prepared to obey them.
I wonder if you would care to comment on each point?
And there it is, in a nutshell, the pragmatic approach.
jog on
duc