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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (127345)	4/21/2011 7:55:20 AM
From: bruwin	Read Replies (1) \| Respond to of 132070

I'd say you are making a good point Madharry, especially as you've been involved in the banking industry. If there's a pile of gold in a country's vault and it's worth $X, because the price of gold is $x/ounce, then that is what the country has to spend. It cannot make money out of fresh air or set the printing presses in motion. In the "good ol' days", many years ago, a country's currency note usually had printed on it, "Pay the Bearer, on demand, $x dollar in gold". Of course, that didn't usually happen but the principle was there. Today a bank can obtain $X from its Central Bank and lend out, say, $20X and charge compound interest (less its original cost to the Central Bank) on that larger amount. As long as they can control their risk, the banks are then making money from a large proportion of the money that they never had. What a great business !!

To: Madharry who wrote (127345)	4/21/2011 9:38:04 PM
From: Skeeter Bug	1 Recommendation Read Replies (1) \| Respond to of 132070

Madharry, i didn't say that gold and silver wouldn't have prevented the problems we see today. they would create different problems - but the nature of the problems would be the same. the wealthy criminals at the top would use gold to systematically asset strip society. they did this when we had a gold standard. they will do it again. The Fallacy of Gold Backed Money economicedge.blogspot.com the point is that we need to extricate ourselves from the criminals at the top. it isn't what backs the money (just ask those busted in the myriad of depressions under various gold standards), it is WHO controls its quantity. are you suggesting a gold standard where the criminals at the top own almost all the gold coupled with ZERO credit? after all, if you start issuing insane CREDIT you will blow up - even with a gold standard. The main point is the criminals who control the system have to go or the system will continue to be used as a weapon against the people.