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Politics : The Obama - Clinton Disaster -- Ignore unavailable to you. Want to Upgrade?

To: DuckTapeSunroof who wrote (10057)	3/28/2009 8:33:27 AM
From: Wayners	Read Replies (2) \| Respond to of 103300

Yes or two other options. A silver standard....or even better than that, exchange all currency currently issued for smaller denominated notes, which would reverse inflation going back to 1933. Now instead of having $100 bill you would have a $5 bill or something like that, but the buying power of the $5 would be the same as $100 today. I think it would be easier as you said to make gold what it really should be worth. It would be interesting to do the calculaton to see what Gold would need to trade at to actually back all the issued dollars in the world. Seems to me the price of Gold should equal the face value of all dollars issued divided by the number of ounces of gold owned by the Federal Reserve System. These numbers should be readily available from the Fed's balance sheet.

To: DuckTapeSunroof who wrote (10057)	3/28/2009 8:40:09 AM
From: Wayners	Read Replies (1) \| Respond to of 103300

I have another economic conundrum for you. Let's say the market free floating exchange rate of one currency against another is 1 ooplek for 2 zabos. In the country of ooplek the cost of a price of bread is 1 ooplek. Does this mean that the cost of bread in zabos is 2 zabos. I think the answer is no, but I can't really explain why. It seems to me that the free floating currecy rates are often wrong based on this in order to promote or discourage certain trade actions between countries. Seems to me it would a slam dunk to arbitrage the system and automatically make money.