trillion dollar coin

[rebelcowboysnb]

Farts are not rare... Nor does it have a demand cause by having a use.

 

[hemet dennis]

Farts are not rare... Nor does it have a demand cause by having a use.

So it's the demand ? So if it's the demand that backs gold doesn't the demand for dollars back the dollar ?

 

[rebelcowboysnb]

Its demand/use + rarity + the proven constant of the two.


People want gold an know others will want it 100 years from now. We know this cause people have wanted it an used it the same way for all of recorded history. We also know that more is not being made.

Fiat currency (US$) is relatively new, unstable an has no actual use beyond a barter item.


So I guess history is the key backer of gold.

 

[hemet dennis]

Its demand/use + rarity + the proven constant of the two.


People want gold an know others will want it 100 years from now. We know this cause people have wanted it an used it the same way for all of recorded history. We also know that more is not being made.

Fiat currency (US$) is relatively new, unstable an has no actual use beyond a barter item.


So I guess history is the key backer of gold.

Don't they still mine for gold ? World gold production was over 80 million oz. in 2011. so it's not that it's not being made.

There's not one use of gold that cant be replaced by something else. But we have enough gold to supply all the industrial uses for a 100's of years.

So now it's backed by history.
Because people have done something for sometime does not mean it was ever a good idea. There's no way we can know the future value of gold.

 

[rebelcowboysnb]

Digging something up is not making more... An the cost of digging it up is very close to market value. Not that what is being dug up matters much to the value. The population is growing faster an cause of much more demand an very little more supply, the value has been steadily on the rise lately an over all pretty steady for recorded history.

An I am sure that the gold rings are not going out of fashion in my lifetime.

 

[hemet dennis]

Digging something up is not making more... An the cost of digging it up is very close to market value. Not that what is being dug up matters much to the value. The population is growing faster an cause of much more demand an very little more supply, the value has been steadily on the rise lately an over all pretty steady for recorded history.

An I am sure that the gold rings are not going out of fashion in my lifetime.

If it's not making more it's finding more.

Why does the population have a demand for gold. The only reason is a belief that it will be of value. Nothing backs gold other then a belief. So money backed by gold is only backed by a belief. The same as the dollar is today.

The biggest use of gold is for jewelery, So most of it isn't anything we need.

 

[rebelcowboysnb]

What does "need" matter?

I cant see how anyone can compare a peace of paper with ink on it to a rare metal that is used to make hundreds of products.

Gold, silver, copper, iron, land exc, all have value based on use an how much there is around. Paper with a picture is only worth paper, beyond that it has value only cause people are willing to trade it an assume others will too.

 

[hemet dennis]

What does "need" matter?

I cant see how anyone can compare a peace of paper with ink on it to a rare metal that is used to make hundreds of products.

Gold, silver, copper, iron, land exc, all have value based on use an how much there is around. Paper with a picture is only worth paper, beyond that it has value only cause people are willing to trade it an assume others will too.

Food has value because you "need" it to live.

We have enough gold to satisfy all industrial needs for 100's of years.

My point with the gold standard is that it's value is only backed by a belief. The belief that you can trade it for goods and/or services, and the same thing backs money.

 

[rebelcowboysnb]

Good luck with your belief that paper is equal to gold.


You do know that with any amount of money in the bank, assuming you are making 7% intrust an nothing drastic changes, with that money a year from now you will be able to buy 3% less product/food than you can today.


There is a reason that most wealthy people have lots of "stuff" an very little cash in banks. Cash is fine as a barter tool but holds no value. Things on the other hand hold value, especially things that don't degrade.

 

[hemet dennis]

And just for the fun of it.

There once was a rich man who was near death. He was very grieved because he had worked so hard for his money and wanted to be able to take it with him to heaven. So he began to pray that he might be able to take some of his wealth with him.
An angel heard his plea and appeared to him. "Sorry, but you can't take your wealth with you."
The man begged the angel to speak to God to see if He might bend the rules. The man continued to pray that his wealth could follow him.
The angel reappeared and informed the man that God had decided to allow him to take one suitcase with him. Overjoyed, the man gathered his largest suitcase and filled it with pure gold bars and placed it beside his bed.
Soon afterward, he died and showed up at the gates of heaven to greet St. Peter.
St. Peter, seeing the suitcase, said, "Hold on, you can't bring that in here!"
The man explained to St. Peter that he had permission and asked him to verify his story with the Lord.
Sure enough, St. Peter checked it out, came back and said, "You're right. You are allowed one carry-on bag, but I'm supposed to check its contents before letting it through."
St. Peter opened the suitcase to inspect the worldly items that the man found too precious to leave behind and exclaimed, "You brought pavement?"

​