Qauntitative Easing 3....open ended.

Quote:

Originally Posted by Six

I made the clear distinction that a FIAT currency manged correctly is the best form of stable currency. I also gave a couple of real good reasons why gold is a bad standard to build a currency on.

No its not the 1800s where people literally carry around gold to trade with and thats what you're advoxating except the promisary notes will be a representation of an equal amount of gold.

Im for growth, profit, hireing and mans free expression to use his talents and knowledge and motivation to build a better life. There needs to be money to do that.

If you're ine of those peoplethat preach a creditless society where what you have is what you have then you really have no understanding of what drives our economy.

Inflation is already double digit and the Feds action is going to increase it even more. Where did you read that I was pro-inflation ?

The title of the OP is obviously critical to the CURRENT Feds action. OH AND BY THE WAY THEY JUST DOWN GRADED OUR CREDIT.....AGAIN. Yep.

Its gonna be tough when no one buys our bonds.

Also, one obscure quote to a long since passed President is hardly objective proof that " Republicans " as you put it share the same affection towards Keynesian economics than our current President.

Its a desperate attempt to legitimize a rash statement. You know how to fix that right ??

A Fiat currency is never manged correctly because human being are not perfect. Fun fact, the USA dollar is currently the long lasting fiat currency. Before this, they had not lasted more then fifty years. Yup, they are really well managed.

You gave false reasons for why a PM is bad as a currency. AKA there is not enough to go around. The response is that the value of the money adjusts automatically to how much of it is in the economy. You have a basic misunderstanding of the nature of money. For the average person devaluing wealth, aka inflation or printing money out of thin air, means that their saving are worth less then it was before. This is supposed to be countered by their debts being less as well but this is relient on them making more of the money that is being printed. How is this good for anyone outside of the govenrment who just wants to pay off their debt with inflated cash, so they can borrow more, to bribe citizens with?

With a PM as a currency as the population increases, or the demand for capital increases, the value of items or services would drop, the value of your saving would increase, but if your heavily in debt, like the government is most of the time, the value of your debt would increase as well. I can see why the govenrment does not want deflation, but as someone that would like to be able to save money and invest, I would love to see some.

Also Bush and a republican congress signed an unfounded 7 trillion dollar medicade prescription plan? Where do you think they where planing on getting that?

Oh I see, you think you can have Fiat without a government going out of control with it. Would you please show me just one historical example of a nation that embraced fiat where it did not collapse do to inflation?

PS Its actually part of the Constitution that we have to use silver or gold. This was cause by the failed fiat currency called the continental.