If the Gold standard came back ...

[Richard Tanner]

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However one has the ability to be created out of thin air, and one does not. Even if they only have value for the same reason, seems like one has a clear edge here.

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Correct, one does have the clear edge of being inexhaustable.

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Both are inexhaustible. Do you see why?

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Wait, you mean to tell me that when I trade an ounce of gold for some other stuff, it doesn't instantly vanish into thin air? I thought conservation of mass didn't apply to money.

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Cute, but the point he (whomever Boro was replying too) was correct. We don't get to play both sides. We trade some gold for food, eat the food and no longer have the gold. On a larger scale, a government uses some money to fund a war, they can't use more then the amount of gold they have (LDO).

On a world scale gold can't be exhausted, but for one particular group it certainly can, which I'm assuming was the point he was making.

Not that any of that is bad, maybe having tighter restrictions on money and not being able to simply print more might encourage fiscal responsibility. Still, his point is a good one.

Cody

[pvn]

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Cute, but the point he (whomever Boro was replying too) was correct. We don't get to play both sides. We trade some gold for food, eat the food and no longer have the gold.

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Well, yeah. If we had a bottomless pit of gold, then nobody would want to sell us stuff for it.

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On a larger scale, a government uses some money to fund a war, they can't use more then the amount of gold they have (LDO).

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As martha says, "that's a good thing."

And we're starting to see the "bottomless pit" effect, as the value of the US dollar continues to drop like a rock.

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On a world scale gold can't be exhausted, but for one particular group it certainly can, which I'm assuming was the point he was making.

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Well, that's a pointless point. Because "one particular group" can exhaust its supply of fiat currency, too. You can discover this empirically. Just keep spending and see if the fed replenishes your bank account.

[pvn]

On the plus side, we may eventually get to carry around little pieces of paper with cool guilloche patterns, pictures of dead white guys, and (most importantly) LOTS OF ZEROES!!

[Richard Tanner]

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As martha says, "that's a good thing."

And we're starting to see the "bottomless pit" effect, as the value of the US dollar continues to drop like a rock.

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It's almost as if I was making this same point when I said:
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Not that any of that is bad, maybe having tighter restrictions on money and not being able to simply print more might encourage fiscal responsibility. Still, his point is a good one.

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Well, that's a pointless point. Because "one particular group" can exhaust its supply of fiat currency, too. You can discover this empirically. Just keep spending and see if the fed replenishes your bank account.

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Being intellectually dishonest or just missing the point? A certain group, in this case, obviously refers to the people printing the money, not the citizens therein. A government can just keep printing away and never run out, though certainly they'll suffer as a result.

Cody

[Bedreviter]

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And we're starting to see the "bottomless pit" effect, as the value of the US dollar continues to drop like a rock.

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Which is a good thing for the US as it´s debt to outside creditors is in USD?

[slickss]

Look at the upside - it's great for tourism. The lowest paid Scandinavians are making like $20-22 an hour these days. Combined with the fall of US real estate prices, you'll be seeing lots of Scandinavian grocery store cashiers with amazing summer homes in the states.

[UATrewqaz]

The following link has absolutely nothing to do with politics, but is a humerous video loosely related to the gold standard...

http://www.youtube.com/watch?v=SjxY9rZwNGU

[pvn]

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And we're starting to see the "bottomless pit" effect, as the value of the US dollar continues to drop like a rock.

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Which is a good thing for the US as it´s debt to outside creditors is in USD?

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Yeah, one good thing. Don't worry about all the negative effects.

And don't worry about that pesky fallacy of aggregation. Some people have debt, and they're benefitting from this one aspect of inflation. But lots of other people are getting killed by it. And, of course, it disproportionately hurts the poor, who keep a higher percentage of their assets in cash.

[pvn]

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Look at the upside - it's great for tourism. The lowest paid Scandinavians are making like $20-22 an hour these days. Combined with the fall of US real estate prices, you'll be seeing lots of Scandinavian grocery store cashiers with amazing summer homes in the states.

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LOL.

[pvn]

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Well, that's a pointless point. Because "one particular group" can exhaust its supply of fiat currency, too. You can discover this empirically. Just keep spending and see if the fed replenishes your bank account.

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Being intellectually dishonest or just missing the point? A certain group, in this case, obviously refers to the people printing the money, not the citizens therein. A government can just keep printing away and never run out, though certainly they'll suffer as a result.

Cody

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They? "The government" certainly suffers a lot less from this than the people who have no control over the printing press.

A guy counterfeiting in his garage can cause inflation. As long as he gets away with it, is he really "suffering" from the inflation????