Oil reserve found.

[T Rex]

Tony, the whole thing with the gold standard is crap.....at least the way it used to run. People think it's great because the government basically can't create money as they see fit.....there is a set amount of money and to "create" more, you have to find more gold.

 

Unfortunately, the government would basically say....here is our dollar is worth x amount of gold. Then if they needed to.....they could change the value next week, but typically the dollar is pegged and doesn't operate on a float like the dollar currently does with other currencies.

 

The gold standard in theory......works.....in practice......doesn't, because too many brilliant people think they have a way to manipulate it to make it better/easier/beneficial.

 

Inflation would continue to exist under the gold standard, due to the fact that gold is constatly mined. What if the ice caps melted and we found HUGE reserves of gold.....inflation would be crazy. There is no fixed amount of gold in the world, and no one knows how much there really is.

 

The federal deficit is another story. Obama, vows he wants to reinstate PAYGO rules for federal budgets. Which means that no new programs can be in place unless actual tax revenues are created to pay for them. In essence, nothing new unless it's paid for. The biggest problem with the federal deficit is the fact that congress and the president spend more than they take in. No real politician wants to talk about it because they think it's a non-issue............some people don't think of it in terms of debt, they think of it in terms of an interest payment.

 

Yeah, After I posted that I did a few searches on google about it... doesnt seem to work to well .

[HAOLE]

Tony, the whole thing with the gold standard is crap.....at least the way it used to run. People think it's great because the government basically can't create money as they see fit.....there is a set amount of money and to "create" more, you have to find more gold.

 

Unfortunately, the government would basically say....here is our dollar is worth x amount of gold. Then if they needed to.....they could change the value next week, but typically the dollar is pegged and doesn't operate on a float like the dollar currently does with other currencies.

 

The gold standard in theory......works.....in practice......doesn't, because too many brilliant people think they have a way to manipulate it to make it better/easier/beneficial.

 

Inflation would continue to exist under the gold standard, due to the fact that gold is constatly mined. What if the ice caps melted and we found HUGE reserves of gold.....inflation would be crazy. There is no fixed amount of gold in the world, and no one knows how much there really is.

 

The federal deficit is another story. Obama, vows he wants to reinstate PAYGO rules for federal budgets. Which means that no new programs can be in place unless actual tax revenues are created to pay for them. In essence, nothing new unless it's paid for. The biggest problem with the federal deficit is the fact that congress and the president spend more than they take in. No real politician wants to talk about it because they think it's a non-issue............some people don't think of it in terms of debt, they think of it in terms of an interest payment.

 

The gold standard has worked for thousands of years. The "problem" it has the Governments cannot print money at will. Gold has always been the most stable form of currency. Gold has never been worthless, but government currencys have been time after time.

 

The federal deficit is a joke. There are not enough dollars in existence to every pay it back. The deficit serves only to enslave Americans, it was never ment to be paid back.

[Archie]

I agree some what, but more explanation of "debt" needs to be explored. Debt can be from money being borrowed from individuals or governments. The biggest creditor to the US is the Federal Reserve. The Fed reserve act of 1913 gave power to a group of banks that own the Fed to print money with no basis for the currency, then it loans that money to the US and collects interest on the money that it creates out of thin air.

 

It does not matter if the money is printed on paper or created as digital 0's on a computer screen, the effect is the same.

 

Did you ever notice that the crude oil is traded in Dollars? At this point Opec is beginning the process to start trading in Euros. They are smart, they see the fall of the dollar and want to get away from it.

 

Dr. Rick, you have saved me some time explaining this to some of the fools on this board that post in countless threads that current gas price hikes are due to low supply.

 

Our country is brimming with oil, we only have a limited means to refine it. Do some research, an oil refinery hasn't been built in this country since the 70s. Therefore, we depend on foreign supply which is traded globally in the dollar. The fed keeps printing money to bail out corrupt investment banks, the airlines, ect.

[LJ]

Before this goes any futher, just so everyone has an understanding... everyone needs to google "Fiat Money"