Ron Paul Predicted Fannie/Freddie Fiasco - 5 Years Ago

[tiznow]

I have no idea.



Not a theory I subscribe to, tizdoom. Fact is gold crashed many times -- and fiat has yet to suffer the same fate on the same scale over many decades. A 3 trillion dollar economy cannot run a on a gold standard.

Call me crazy, but at the end of the day, performance is the final arbitrator.



You considered the early 1900s an "emerging market"?

gold doesn't crash banks joe

the credit creation does

the banks lent out more than they had in the bank (alot of it with to much risk being taken on) and people freaked out cause the economy was going to shit and wanted their money pretty simple concept

some smaller banks going up in the early stages of this right now and has NOTHING to do with gold or anything

it has to do with lending out too much risky debt

fiat allows that debt to be created

 

[xpanda]

Hey, Joe, take eleven minutes out of your day to learn about what the gold standard did, and didn't do, for price volatility. A wee, easy-to-follow video even you can understand:

http://www.chrismartenson.com/inflation

 

[JoeContrarian]

Joe, you're confusing the volatility of the gold *price* (as measured against volatile fiat) with volatility of purchasing power. Gold's price is only volatile because of the underlying currency it is measured against. But when gold has been used as THE currency, there is little to no volatility of its purchasing power.

I'm sorry, X, but the unemployment rates and frequency of bank failures during the said period (the gold standard) paint a different picture.

Recessions (and depressions) are few and far between since we've adopted a fiat system, which continues to improve over time.

When the current system collapses (and it won't), your arguments will at least have reached a level playing field.

 

[tiznow]

all fiat has failed throughout the history of economies

that's just history

we tend to repeat ourselves throughout history

i see the US as rome of a different time period

looks much different but at its roots its core structure its pretty much the same

here's a history of currency debasement from rome

http://en.wikipedia.org/wiki/Roman_currency

we've done the same thing

took silver outta circulation in nickels, dimes, and quarters a while back

copper will eventually be taken out as well....pre 1982 pennies copper....while current ones zinc

etc...etc...

 

[eek.]

"fiat will outperform a volatile gold standard."


Our Joe struggles with those numbery bits, he always has.

:grandmais

 

[tiznow]

there's nothing he can say

fiat is flawed at its roots over the very long term

the austrian's are dead right....the ron paul's etc.....it just takes a long time to reach the breaking point

eventually it will cost a million usd to buy a loaf of bread if we continue on this path we are going....this point not in our lifetimes most likely

pennies, nickels, and quarters that have some degree of intrinsic value (currently a pre 1982 penny is worth over 2x its face value for its current metal content) will be taken out of circulation and all the currency in circulation will have the intrinsic value of toilet paper (well less since it probably hurts to use dollars as toilet paper LOL)

near term fiat just good for the statists and socialists (the powers that be) to gain more power, wealth, and influence

 

[eek.]

As long as an individuals purchasing power can keep up, inflation is irrelevant.

When a loaf costs half a million dollars the average wage will be a billion dollars a week kinda thing.

Inflation stops rich people hiding thier money, they are forced to make their money work if it's going to keep up with prices.

It's a good system and it really works.

Before 1945 and fiat/credit, most ordinary people didn't have a pot to piss in.

:grandmais

 

[JoeContrarian]

tizdoom, the gold standard fundamentally constrained the economic policies that were pursued during it's period and was largely responsible for creating the unstable economic environment on which those policies acted.

Please go back and look at the record.

No country in the world uses the gold standard anymore for very very good reason. And it has nothing -- ABSOLUTELY NOTHING -- to do with your conspiracy of "convenient borrowed credit" and how the secret Bilderbugs want to "control" us (bankrupt us suckers with boom and bust cycles).

 

[tiznow]

its all faith based eekster

if a ton of people in the world thought like me fiat would collapse immediately

as long as its all about the benjamin's its all good and the games continue

 

[tiznow]

As long as an individuals purchasing power can keep up, inflation is irrelevant.

When a loaf costs half a million dollars the average wage will be a billion dollars a week kinda thing.

Inflation stops rich people hiding thier money, they are forced to make their money work if it's going to keep up with prices.

It's a good system and it really works.

Before 1945 and fiat/credit, most ordinary people didn't have a pot to piss in.

:grandmais

tell that to the people living in zimbabwe :missingte

 

[Brooklynbomber]

Joe's last post disappeared, but I do have this quote in my head: "fiat will outperform a volatile gold standard."

 

[tiznow]

i'm hoarding my pre 1982 pennies and nickels (also worth more than face value currently) just in case we reach that point before i fall in the grave

LOL

 

[JoeContrarian]

its all faith based eekster

if a ton of people in the world thought like me fiat would collapse immediately

as long as its all about the benjamin's its all good and the games continue

Correct, "faith based" capital -- or if you prefer "intangible capital" as the World Bank defines it.

I'm not surprised you're a proponent of the gold standard, because you yourself openly admitted that you don't understand how modern wealth is measured.

Essentially, your ENTIRE theory about our modern fiat currency is the same misguided mindset Mark Lawrence uses when picking his weekly football picks: the Bears lost on a such and such date, therefore history will repeat itself this coming Sunday. :missingte

 

[Willie99]

Economic might and GDP should determine a nation's wealth, not dust. Why should some do nothing country in Africa be the world's wealthiest?

The gold standard is really laughable, and expanding the money supply is an economic necessity as the worldwide economies grow.

Do gold standard advocates have any idea how much the quality of life has improved since the implementation of monetary systems based on economic wealth? Absolutely dumbfounding.

 

[tiznow]

fiat is just an easy exchange mechanism its all digits and entirely based on faith

its is backed by nothing intrinsically and therefore it is flawed at its roots

when that faith is lost on a global scale is anyone's guess

but it'll happen at some point if we continue down the path of debasement

having metal still in coins is actually a protection from this happening

my grandpa and many others hoarded the silver coins back in the day before they took them outta circulation

once that is gone there is no way for a normal joe to protect themselves

 

[Willie99]

It's backed by the full faith of the United States government, the economic might of the country and the wealth of it's people.

Gold is fucking dust.

Your arguments are obsolete and the proof is in the worldwide improvement in the quality of life.

Once again, your argument is reduced to some theory of failure in the future, please tizdoom.

 

[Romanowski]

fiat is just an easy exchange mechanism its all digits and entirely based on faith

its is backed by nothing intrinsically and therefore it is flawed at its roots

when that faith is lost on a global scale is anyone's guess

but it'll happen at some point if we continue down the path of debasement

having metal still in coins is actually a protection from this happening

my grandpa and many others hoarded the silver coins back in the day before they took them outta circulation

once that is gone there is no way for a normal joe to protect themselves

hno:hno:hno:hno:hno:

gold is intrinsic as well. If it werent shiny would we give a fuk?

you dont get it, nor will you ever get it.

If all the world wealth were attached to gold there is no incentive to do a thing to progress.

Nada zilch. Its static without future exploration.

I hear south america has a lot of untapped gold, maybe then they will become the wealthiest of nations:lolBIG:

 

[Romanowski]

this is an empty argument

invest in gold as a hedge vs inflation, great.

attach the actual wealth of a nation to a gold standard, retarded

 

[JoeContrarian]

Economic might and GDP should determine a nation's wealth, not dust. Why should some do nothing country in Africa be the world's wealthiest?

The gold standard is really laughable, and expanding the money supply is an economic necessity as the worldwide economies grow.

Do gold standard advocates have any idea how much the quality of life has improved since the implementation of monetary systems based on economic wealth? Absolutely dumbfounding.

Indeed.

Economic progress under the current fiat system has been nothing short of amazing.

But Ron Paul theorists like tizdoom are trying to convince us it's all a mirage, destined to implode any day now. :missingte

Give me a sec and I'll dig up the charts (the breakdown) of how modern bankers and economists measure wealth so the Ron Paul crayon scribblers at home can learn something for once. :missingte

 

[tiznow]

hno:hno:hno:hno:hno:

gold is intrinsic as well. If it werent shiny would we give a fuk?

you dont get it, nor will you ever get it.

If all the world wealth were attached to gold there is no incentive to do a thing to progress.

Nada zilch. Its static without future exploration.

I hear south america has a lot of untapped gold, maybe then they will become the wealthiest of nations:lolBIG:

gold has been chosen by man/history to play this role

gold never will be outdated it will always have its role

high gold is always a warning cry that troubling economic times are ahead and our financial system is at risk

and thus the reason gold doesn't keep up with inflation over the very long haul

it falls back down once faith in the system/fiat is restored

gold won't go to 10,000 an ounce till faith in fiat is near completely lost

it doesn't have to be gold, silver has been used as well

it could be seashells but that's not a stable thing to use

i've posted it several times but greenspan's 1996 rant gold and economic freedom is spot on

http://www.321gold.com/fed/greenspan/1966.html