Bobby. wrote on Nov 10
th, 2024 at 12:44pm:
tallowood wrote on Nov 10
th, 2024 at 12:05pm:
Bobby. wrote on Nov 10
th, 2024 at 10:30am:
thegreatdivide wrote on Nov 10
th, 2024 at 10:15am:
More to the point: due to the enormous increase in the value of global output and trade, after Asia's post WW2 rise beginning with Japan in the 60's.
Of course the amount of money in circulation had to also increase greatly.
Money of course is created out of thin air, you keep making the mistake of seeing money as a scarce commodity.
The real issues in a monetary economy are inflation, cost of living, interest rates, wages and employment, NOT debt (since money is created out of thin air).
It will be fascinating to see what Trump achieves in the US with his MAGA and "America First" policies before the mid-term elections; he is projected to double the US deficit and increase US debt. Inflation is the unknown under Trump's policies, we will see.
My point is that today -
Gold is worth US$2,741.57 per ounce.
If we went to the Gold standard - Gold would be worth $US 130,000 per ounce overnight -
such is the amount of money printing in the last 40 or more years.
What a windfall for people who have Gold.
The United States holds the world's largest stockpile of gold reserves. The country's government has almost as many reserves as the next three largest gold-holding countries combined—Germany, Italy, and France. Russia rounds out the top five. The International Monetary Fund (IMF) is one of the top gold reserve holders with 2,814.10 metric tons (3,102.01 standard tons)—almost as much as Germany
Doesn't matter - it's but a tiny fraction of gold value compared
to the size of the debt -
it's $34 trillion in the USA going up & by $1 trillion every 100 days
I can see you - like many people - are still stuck in the past, not understanding that money is created out of thin air.
'Finding the Money' (film)
https://www.google.com/search?q=finding+the+money+full+movie+youtube&sca_esv=2c2...What doesn't matter (for a currency-issuing government) is
deficit and debt; what DOES matter is the nation's productive capacity.
Quote:and causing massive inflation from all the money printing.
If you had money in the bank in the last 5 years you've lost at least 20% of its value.
1. We have just exited a post-covid inflationary episode, in which the inflation was caused by government mismagement: the government should not have borrowed money to pay the essential bills of locked down wotkers, the government should have authorized Treasury to create money out of thin air, thus avoiding a build-up in workers' purchasing power which caused inflation after the pandemic ended, and a massive increase in government debt.
2. 2% inflation is OK if wages grow at a faster rate. And $300k (say) in the bank still earns interest, at least maintaining the purchasing power/value of the money.
3. A better system would be a mandated
zero interest-rate, real full-employment scenario, with price controls, and government spending determined by
availabilty of resources, not taxing or borrowing from the private sector which always results in government 'austerity'.
And we could sack Bullock who is worse than useless, because she is causing home buyers and unemployed workers endless misery.
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