Is Money A Terrible Thing

Fiat money has been working pretty good.

 

For certain people yes but by just printing money as the FED does now you cant save the economy they just destroy the currency by inflation at the long.
Just creating more money out of nothing will lead to a catastrophy as you will see. Flooding the world with $s that are less and less worth creates more problems than it solves. Why dont they just print money for everybody and make everybody rich? This doesnt work. There are enough historic examples.

 

Gold price up to $1650
http://www.marketwatch.com/story/goldman-ups-12-month-gold-price-forecast-to-1650-2010-10-12

I (as well as many other people) think in the long with the amount of quantitative easing it will rise up to $10000
http://goldswitzerland.com/index.php/gold-entering-a-virtuous-circle-egonvongreyerz/

 

Actually the current worry is deflation and falling into the deflationary cycle like Japan did, the US inflation rate was around 1% last year.

And the gold standard does shit to stop inflation, the worst inflation in history outside of Zimbabwe's current one happened in the 1920's and 1940's to countries that had just come out of war.

 

I mean the dollar inflation- the dollar has lost a lot of its value due to inflation. We have over1000% dollar inflation since 1945 and over 2000% of dollar inflation since the begin of last century.
http://www.usinflationcalculator.com/


I didnt write about the rise of prices, those are 2 different things

 

Any graph that doesn't have Y axis that starts at 0 is purposely meant to misleading. Sure the dollar has lost a lot of its value over the past 50 years. People also make substantially more of them. Take note of how the standard of living regardless of the value of the dollar has improved dramatically over the past 150 years even if the worth of one dollar has declined?

 

Poverty in the US increasing- record number of 43.6 million people living in poverty
http://www.msnbc.msn.com/id/39211644/ns/us_news-life/

more charts on dollar inflation
http://www.google.de/imgres?imgurl=http://www.gold-eagle.com/editorials_08/images/goldrunner031808a.gif&imgrefurl=http://www.gold-eagle.com/editorials_08/goldrunner031808.html&usg=__49iuyzQAxO03TzrrLvJpvI2hv2c=&h=372&w=600&sz=65&hl=de&start=7&zoom=1&um=1&itbs=1&tbnid=5gTBOG5U-lSyPM:&tbnh=84&tbnw=135&prev=/images%3Fq%3Ddollar%2Binflation%2Bimage%26um%3D1%26hl%3Dde%26client%3Dfirefox-a%26sa%3DX%26rls%3Dorg.mozilla:defficial%26tbs%3Disch:1

on the exploding gold price
http://awurl.com/xJSxaXd0w#first_awesome_highlight

 

...Most of that change then happened before fiat currency when the government couldn't just "print more money".

You are looking at one of those correlation does not imply causation things.

 

There has not been a gold standard all the time, money was just printed during the big inflation of the early 20th century
http://en.wikipedia.org/wiki/Gold_standard

 

Germany suffered from hyper-inflation because a)most of their capital was decimated in the war and b)they were forced to make unpayable war reparations. Printing too much unbacked money was simply an intermediary step after their economy was already fucked.

Hence the Marshal Plan after WW2. In your scenario, they would have just forced them back onto the gold standard.

 

They already started printing money during the ww1
http://usagold.com/germannightmare.html
[SIZE=-1]When the war broke out on July 31, 1914, the Reichsbank (German Central Bank) suspended redeemability of its notes in gold. After that there was no legal limit as to how many notes it could print. The government did not want to upset people with heavy taxes. Instead it borrowed huge amounts of money which were to be paid by the enemy after Germany had won the war[/SIZE]

 

Centralbanking for dummies
http://i.imgur.com/KFxal.jpg

 

ie: War is an unnatural influence on an economy.

 

so with both the USA and Germany being involved in wars at present we now have unnatural influences on our economies?!

 

Disparity is built into the system.

 

maybe this helps explaining:


Quantitative Easing, Money Velocity Inflationary Armageddon



http://www.marketoracle.co.uk/Article22366.html