South Carolina wants separate currency for state

[urbanrealtor]

The irony of being against price controls and for a gold standard seem entirely lost on Paul.

I find it funny as shit.

Here is an explainer of what happened the last time a developed economy went to a precious metal standard.
(Hint: they got fucked big time)

http://www.federalreserve.gov/boarddocs/speeches/2004/200403022/default.htm

Irony bonus point:
It is written by Bernanke

Double irony bonus point:
It was American speculators that did the fucking.

For some reason, reading this makes me want to scream “Earth First! Make Mars our bitch!”

But then…I have issues.

[Rich Toscano]

[quote=urbanrealtor]The irony of being against price controls and for a gold standard seem entirely lost on Paul.[/quote]

That doesn’t make any sense at all. Making something the currency isn’t the same as controlling the price of it. You may be controlling the dollar denominated price, but the whole point is that the dollar-denominated price is irrelevant. In a gold standard it’s the price of things in gold terms that matters, and all such things can float freely, and conversely the price of gold against anything else can float freely. Linking the dollars to gold is just a convenience so you don’t have to carry ingots around, it’s not fixing or controlling the price of anything.

(I am not endorsing a gold standard and I have no interest in debating the merits of a gold standard… I’m just pointing out that the above quote is a misapprehension of what price controls are).

This however was well played, sir:

[quote]
I seem to remember another alternative currency endeavour that South Carolina spearheaded previously.
http://en.wikipedia.org/wiki/Confederate_States_of_America_currency
[/quote]

[Rich Toscano]

[quote=urbanrealtor]The irony of being against price controls and for a gold standard seem entirely lost on Paul.[/quote]

That doesn’t make any sense at all. Making something the currency isn’t the same as controlling the price of it. You may be controlling the dollar denominated price, but the whole point is that the dollar-denominated price is irrelevant. In a gold standard it’s the price of things in gold terms that matters, and all such things can float freely, and conversely the price of gold against anything else can float freely. Linking the dollars to gold is just a convenience so you don’t have to carry ingots around, it’s not fixing or controlling the price of anything.

(I am not endorsing a gold standard and I have no interest in debating the merits of a gold standard… I’m just pointing out that the above quote is a misapprehension of what price controls are).

This however was well played, sir:

[quote]
I seem to remember another alternative currency endeavour that South Carolina spearheaded previously.
http://en.wikipedia.org/wiki/Confederate_States_of_America_currency
[/quote]

[Rich Toscano]

[quote=urbanrealtor]The irony of being against price controls and for a gold standard seem entirely lost on Paul.[/quote]

That doesn’t make any sense at all. Making something the currency isn’t the same as controlling the price of it. You may be controlling the dollar denominated price, but the whole point is that the dollar-denominated price is irrelevant. In a gold standard it’s the price of things in gold terms that matters, and all such things can float freely, and conversely the price of gold against anything else can float freely. Linking the dollars to gold is just a convenience so you don’t have to carry ingots around, it’s not fixing or controlling the price of anything.

(I am not endorsing a gold standard and I have no interest in debating the merits of a gold standard… I’m just pointing out that the above quote is a misapprehension of what price controls are).

This however was well played, sir:

[quote]
I seem to remember another alternative currency endeavour that South Carolina spearheaded previously.
http://en.wikipedia.org/wiki/Confederate_States_of_America_currency
[/quote]

[Rich Toscano]

[quote=urbanrealtor]The irony of being against price controls and for a gold standard seem entirely lost on Paul.[/quote]

That doesn’t make any sense at all. Making something the currency isn’t the same as controlling the price of it. You may be controlling the dollar denominated price, but the whole point is that the dollar-denominated price is irrelevant. In a gold standard it’s the price of things in gold terms that matters, and all such things can float freely, and conversely the price of gold against anything else can float freely. Linking the dollars to gold is just a convenience so you don’t have to carry ingots around, it’s not fixing or controlling the price of anything.

(I am not endorsing a gold standard and I have no interest in debating the merits of a gold standard… I’m just pointing out that the above quote is a misapprehension of what price controls are).

This however was well played, sir:

[quote]
I seem to remember another alternative currency endeavour that South Carolina spearheaded previously.
http://en.wikipedia.org/wiki/Confederate_States_of_America_currency
[/quote]

[Rich Toscano]

[quote=urbanrealtor]The irony of being against price controls and for a gold standard seem entirely lost on Paul.[/quote]

That doesn’t make any sense at all. Making something the currency isn’t the same as controlling the price of it. You may be controlling the dollar denominated price, but the whole point is that the dollar-denominated price is irrelevant. In a gold standard it’s the price of things in gold terms that matters, and all such things can float freely, and conversely the price of gold against anything else can float freely. Linking the dollars to gold is just a convenience so you don’t have to carry ingots around, it’s not fixing or controlling the price of anything.

(I am not endorsing a gold standard and I have no interest in debating the merits of a gold standard… I’m just pointing out that the above quote is a misapprehension of what price controls are).

This however was well played, sir:

[quote]
I seem to remember another alternative currency endeavour that South Carolina spearheaded previously.
http://en.wikipedia.org/wiki/Confederate_States_of_America_currency
[/quote]

[Eugene]

[quote=walterwhite]The odds of a giant goldmine being found are substantially less than that the fed will continue to print money.[/quote]

It depends on what you mean by a gold mine. The vault of GLD should count too.

Also consider that just the output of all gold mines currently in operation increases the amount of above-ground gold (in essence, debasing the value of gold) at a rate of about 1.5%/year, if you go off the 165,000 ton figure for “all gold ever mined since the dawn of humanity”. If you compare 2500 tons/year against just the gold held in official reserves (30,000 tons) and private investment funds (2,000 tons), gold is being debased faster than the dollar.

[Eugene]

[quote=walterwhite]The odds of a giant goldmine being found are substantially less than that the fed will continue to print money.[/quote]

It depends on what you mean by a gold mine. The vault of GLD should count too.

Also consider that just the output of all gold mines currently in operation increases the amount of above-ground gold (in essence, debasing the value of gold) at a rate of about 1.5%/year, if you go off the 165,000 ton figure for “all gold ever mined since the dawn of humanity”. If you compare 2500 tons/year against just the gold held in official reserves (30,000 tons) and private investment funds (2,000 tons), gold is being debased faster than the dollar.

[Eugene]

[quote=walterwhite]The odds of a giant goldmine being found are substantially less than that the fed will continue to print money.[/quote]

It depends on what you mean by a gold mine. The vault of GLD should count too.

Also consider that just the output of all gold mines currently in operation increases the amount of above-ground gold (in essence, debasing the value of gold) at a rate of about 1.5%/year, if you go off the 165,000 ton figure for “all gold ever mined since the dawn of humanity”. If you compare 2500 tons/year against just the gold held in official reserves (30,000 tons) and private investment funds (2,000 tons), gold is being debased faster than the dollar.

[Eugene]

[quote=walterwhite]The odds of a giant goldmine being found are substantially less than that the fed will continue to print money.[/quote]

It depends on what you mean by a gold mine. The vault of GLD should count too.

Also consider that just the output of all gold mines currently in operation increases the amount of above-ground gold (in essence, debasing the value of gold) at a rate of about 1.5%/year, if you go off the 165,000 ton figure for “all gold ever mined since the dawn of humanity”. If you compare 2500 tons/year against just the gold held in official reserves (30,000 tons) and private investment funds (2,000 tons), gold is being debased faster than the dollar.

[Eugene]

[quote=walterwhite]The odds of a giant goldmine being found are substantially less than that the fed will continue to print money.[/quote]

It depends on what you mean by a gold mine. The vault of GLD should count too.

Also consider that just the output of all gold mines currently in operation increases the amount of above-ground gold (in essence, debasing the value of gold) at a rate of about 1.5%/year, if you go off the 165,000 ton figure for “all gold ever mined since the dawn of humanity”. If you compare 2500 tons/year against just the gold held in official reserves (30,000 tons) and private investment funds (2,000 tons), gold is being debased faster than the dollar.

[scaredyclassic]

1.5 perc more gold per year to divide among 7 billion souls .

1.5 perc more dollars per year?

U lost me.

I’m not even a gold bug … Just seems like prudent insurance to have some money in a gold mine.. A nation could get spoiled having the reserve currency. Think it’s gonna go on forever. Maybe it will… But maybe it won’t…

The crux is you cannot double the amount of gold out there this week. But you can double redouble and redouble again the number of dollars. I mean , ya could. If ya had to, to pay off debts.

But gold is kinda slow …

[scaredyclassic]

1.5 perc more gold per year to divide among 7 billion souls .

1.5 perc more dollars per year?

U lost me.

I’m not even a gold bug … Just seems like prudent insurance to have some money in a gold mine.. A nation could get spoiled having the reserve currency. Think it’s gonna go on forever. Maybe it will… But maybe it won’t…

The crux is you cannot double the amount of gold out there this week. But you can double redouble and redouble again the number of dollars. I mean , ya could. If ya had to, to pay off debts.

But gold is kinda slow …

[scaredyclassic]

1.5 perc more gold per year to divide among 7 billion souls .

1.5 perc more dollars per year?

U lost me.

I’m not even a gold bug … Just seems like prudent insurance to have some money in a gold mine.. A nation could get spoiled having the reserve currency. Think it’s gonna go on forever. Maybe it will… But maybe it won’t…

The crux is you cannot double the amount of gold out there this week. But you can double redouble and redouble again the number of dollars. I mean , ya could. If ya had to, to pay off debts.

But gold is kinda slow …

[scaredyclassic]

1.5 perc more gold per year to divide among 7 billion souls .

1.5 perc more dollars per year?

U lost me.

I’m not even a gold bug … Just seems like prudent insurance to have some money in a gold mine.. A nation could get spoiled having the reserve currency. Think it’s gonna go on forever. Maybe it will… But maybe it won’t…

The crux is you cannot double the amount of gold out there this week. But you can double redouble and redouble again the number of dollars. I mean , ya could. If ya had to, to pay off debts.

But gold is kinda slow …

[Author]

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