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#41
10-02-2007, 11:35 AM
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Re: Spotting fake hundos
[ QUOTE ]
[ QUOTE ] [ QUOTE ] When a bank loans money, that money is paid back to them. So no money is being created out of thin air. Not that the Fed doesn't pump extra cash into the system to get through the tough times. It does. [/ QUOTE ] No the bank expects the money to be paid back to them. The economy is sustained by faith. That is why we have nothing to fear, but fear itself. And money is being created due to the interest that is payed back, plus the loan. [/ QUOTE ] And if you don't pay it back, the bank seizes your house or whatever assets you have to retrieve the money. [/ QUOTE ] And what if you burn your house down and seed the land with toxic chemicals? Value = 0. |
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#42
10-02-2007, 11:37 AM
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Re: Spotting fake hundos
[ QUOTE ]
[ QUOTE ] [ QUOTE ] When a bank loans money, that money is paid back to them. So no money is being created out of thin air. [/ QUOTE ] Uh....no. US Currency is not backed by any tangible items such as gold (which is really just a hunk of metal with a specific elemental number that humans assigned an arbitrary value to based on its relative scarcity and its ability to exist in a solid and liquid form without losing much mass between transformations). No bank or reserve has actual cash, collateral or metal anywheres near the actual value of their outstanding loans. [/ QUOTE ] The dollar is backed by the stabilty and strength of the United States of America and the faith people have in it. Sure it has value because we choose believe it does, but that's no different to people putting faith in gold holding it's value. Gold has value because we convince ourselves it has. [/ QUOTE ] Didn't I just write that in the post you are quoting? I wrote that the dollar is not backed by and tangible items. Faith is not tangible. |
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#43
10-02-2007, 11:39 AM
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Re: Spotting fake hundos
[ QUOTE ]
Didn't I just write that in the post you are quoting? I wrote that the dollar is not backed by and tangible items. Faith is not tangible. [/ QUOTE ] the dollar is backed by the commidities it trades for, just like gold is backed by the commodities it trades for or the dollars it trades for. Nothing has intrinsic value. Stop getting your econ lessons from 2am infomercials and AC crackpots/gunhoarders. |
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#44
10-02-2007, 01:18 PM
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Re: Spotting fake hundos
All I know is that when it comes tumbling down (signs of it this week, but I don't think we're there yet... but most certainly within my lifetime), I hope I'm savvy enough to see it coming far enough in advance to trade all of my ink-covered cotton for canned foods and shotgun shells.
Also, I'm tickled that my little one-off generated such a discussion. I figure poker players more than your average person understand the fantasy of money. |
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#45
10-02-2007, 01:26 PM
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Re: Spotting fake hundos
[ QUOTE ]
All I know is that when it comes tubmling down (signs of it this week, but I don't think we're there yet... but most certainly within my lifetime), I hope I'm savvy enough to see it coming far enough in advance to trade all of my ink-covered cotton for canned foods and shotgun shells. [/ QUOTE ] Sounds like all that stuff you hoarded for the Y2K end-of-the-world apacolypse will finally come in handy. [img]/images/graemlins/smile.gif[/img] |
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#47
10-02-2007, 01:32 PM
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Re: Spotting fake hundos
Ahhhh .... using that line of reasoning, I agree with you 100%. I just hope I'm out of town when it happens. [img]/images/graemlins/smile.gif[/img]
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#49
10-02-2007, 01:38 PM
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Re: Spotting fake hundos
Not sure how this turned into an econ debate, but I'll agree that the US currency (any other currency for that matter) is only backed by the FAITH of the people, including people from other countries and nothing else! It is NOT backed by gold or any other 'commodity'. It might be used to acquire a commodity, but if it was truly backed by material goods or 'commodities', then inflation would cease to exist! (Why would the value of money go down if it was backed by commodities?).
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#50
10-02-2007, 02:11 PM
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Re: Spotting fake hundos
back when money was supposedly backed by all the gold in fort knox, that depended on our faith that the gold wouldn't just all get stolen in the event that the government collapsed. "backing" our currency with gold is retarded. This whole conversation is the bread and butter of end-of-the-world nutjobs, conspiracy theorists, crackpot ACists, etc.
What's gold backed by btw? You don't actually think it has "intrinsic" value, do you? |
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