Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: KyrosL who wrote (75239)	3/4/2001 10:15:21 PM
From: LLCF	Respond to of 436258

<So, under a gold standard, any country with a stash of dollars, could cause a US recession by simply demanding gold for dollars. I prefer the current system, thank you.> But I thought gold was worthless??? Besides... they can also demand goods and services. DAK

To: KyrosL who wrote (75239)	3/4/2001 10:27:48 PM
From: brightness00	Respond to of 436258

> So, under a gold standard, any country with a stash of > dollars, could cause a US recession by simply demanding > gold for dollars. I prefer the current system, thank you. As the monetary system currently stands, if anyone holds a stash of dollar, and is ready to unload the dollar on the market in return for any basket of commodity but unable to find counter party at the previously prevailing market price, that person/country/whatever would by definition immediately cause inflation, leading to FED tightening. Gold standard or not has nothing to do with this. If what you are suggesting is that for the sake of national security, the US government should be able to retain the ability to print promisary notes in exchange for goods and services, then render the paper dollar worthless when the holder of those paper dollars want to redeem them for goods and services they want, I've got news for you: the victims of such machination are far less likely to be foreign countries than domestic producers, simply because foreign countries would have long dumped dollars in favor of other asset classes. It will be the small time producers of this country paying the extra taxation through inflation. The result? The stagflation of the late 60's and 70's. Been there, done that; hopefully we don't make the same mistakes again. IMHO, Jim