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140 Years of Monetary History in 10 Minutes

15 Jun

Mike Maloney

Q.:  What’s the lesson?

A.:  You can’t trust any government to issue currency other than gold or silver.

video   00:09:52

 

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4 responses to “140 Years of Monetary History in 10 Minutes

  1. Henry

    June 15, 2014 at 5:48 PM

    The problem with gold & silver is there isn’t enough of it. That is, the total value of all the gold & silver in existence is not remotely enough to cover the world’s monetary needs.

    And inflating the price of gold & silver to solve this shortage problem doesn’t work for two reasons:

    1) Backing a currency with gold & silver which have been artificially inflated in price means you do not have currency with intrinsic value.

    2) No one is ever going to redeem currency for gold or silver at an artificially raised price when the same gold or silver is trading at a lower price in the open market. This means the currency is effectively not backed by anything.

    So, as nice as it may seem, a gold & silver standard is not a practical option in the real world.

     
    • palani

      June 16, 2014 at 8:35 PM

      Henry “a gold & silver standard is not a practical option in the real world”

      Real world? Fiat money is the ideal solution for the imaginary world. The real world uses honor and responsibility as currency. The gold and silver is merely a token for these values. A token may be as small as one dollar.

       
  2. harrytapp

    June 16, 2014 at 12:53 AM

    Gods plan was to eliminate usury and cancel all debts every 7 years.

     
  3. David Merrill

    June 27, 2014 at 5:33 AM

    My definition for SDR’s is, The measure of a society’s conditioning to blindly endorse private credit from the local central bank.

     

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