Understanding Leftist Mentality

[Wikkiwallana]

Enjoy having that bubble pop.

What bubble? Gold has been by far more stable than fiat currencies. Fiat currencies contribute to bubbles.

http://www.investitwisely.com/gold-vers ... l-bubbles/

Stable?


Don't make me laugh.

http://seekingalpha.com/article/260900- ... old-bubble

[Mavorpen]

What bubble? Gold has been by far more stable than fiat currencies. Fiat currencies contribute to bubbles.

http://www.investitwisely.com/gold-vers ... l-bubbles/

Stable?

Don't make me laugh.

http://seekingalpha.com/article/260900- ... old-bubble

Honestly his nonsense isn't funny anymore.

[Alien Space Bats]

1817, 1837, 1857, 1873, and 1893 were the "panic" years, all followed by prolonged depressions. Gold is the least stable currency; its value relative to basic goods and services has always fluctuated widely depending on the amount of hoarding behavior. When it was the basis of most moneys, it exaggerated business cycles intolerably.

Hoarding behavior and the amount of shiny rocks dug up from the ground. Gold has no intrinsic value, just "It looks shiny."

It has some medical uses and some applications to electronics; it's not a bad semi-conductor.

[Farnhamia]

Hoarding behavior and the amount of shiny rocks dug up from the ground. Gold has no intrinsic value, just "It looks shiny."

It has some medical uses and some applications to electronics; it's not a bad semi-conductor.

Semiconductor? Gold is an excellent conductor of electricity. That's why so much of it goes into electronic devices.

[Hittanryan]

Hoarding behavior and the amount of shiny rocks dug up from the ground. Gold has no intrinsic value, just "It looks shiny."

It has some medical uses and some applications to electronics; it's not a bad semi-conductor.

Ugh, I know, I know. Gold does have some use as a material. It's a conductor, by the way, even better than copper.

However, if that's the case I thought the idea of hard currency is that its supply is fixed? Gold still isn't a good example, because you can go dig up more and because it gets consumed in its industrial applications. Unless you want to assign dollar values to circuit boards so you can trade them in for cash?

[Hydesland]

Hoarding behavior and the amount of shiny rocks dug up from the ground. Gold has no intrinsic value, just "It looks shiny."

It has some medical uses and some applications to electronics; it's not a bad semi-conductor.

I'm going to uncharacteristically defend gold for a second. Gold made sense initially because, while it is scarce and considered valuable, hoarding it is not as economically destructive in the way that hoarding other commodities such as grain is, and doesn't depend on harvests or the climate for its scarcity. So its lack of practical use was exactly its advantage. Gold would be a fairly rational choice for a hard currency.

[Alesyium]

I find its because ultra-rights such as yourself tend to deem money as having higher value than humanity. Money is a useful tool to be sure but if a society degenerates to having pursuit of money being its overwhelming consumption then something has gone hideously wrong.

[Hittanryan]

It has some medical uses and some applications to electronics; it's not a bad semi-conductor.

I'm going to uncharacteristically defend gold for a second. Gold made sense initially because, while it is scarce and considered valuable, hoarding it is not as economically destructive in the way that hoarding other commodities such as grain is, and doesn't depend on harvests or the climate for its scarcity. So its lack of practical use was exactly its advantage. Gold would be a fairly rational choice for a hard currency.

That was the idea. However, with modern industrial mining technology and a globalized economy, if we went back to the gold standard how scarce would it really remain?

[Svobodu]

What bubble? Gold has been by far more stable than fiat currencies. Fiat currencies contribute to bubbles.

http://www.investitwisely.com/gold-vers ... l-bubbles/

Stable?


Don't make me laugh.

http://seekingalpha.com/article/260900- ... old-bubble

You can't read a graph? All I see after gold standard is inflation with no deflation. Hah, you just posted a graph that hurts your own assumptions.

Find a graph that measures value of USD to gold and you will see the inflation.

[Hydesland]

I'm going to uncharacteristically defend gold for a second. Gold made sense initially because, while it is scarce and considered valuable, hoarding it is not as economically destructive in the way that hoarding other commodities such as grain is, and doesn't depend on harvests or the climate for its scarcity. So its lack of practical use was exactly its advantage. Gold would be a fairly rational choice for a hard currency.

That was the idea. However, with modern industrial mining technology and a globalized economy, if we went back to the gold standard how scarce would it really remain?

It'd still remain scarce, there is only a finite amount of gold in the world after all. Most of it is in the vaults of central banks.

[The UK in Exile]

Stable?


Don't make me laugh.

http://seekingalpha.com/article/260900- ... old-bubble

You can't read a graph? All I see after gold standard is inflation with no deflation. Hah, you just posted a graph that hurts your own assumptions.

Find a graph that measures value of USD to gold and you will see the inflation.

it proves gold is not stable.

[Hydesland]

Stable?


Don't make me laugh.

http://seekingalpha.com/article/260900- ... old-bubble

You can't read a graph? All I see after gold standard is inflation with no deflation. Hah, you just posted a graph that hurts your own assumptions.

A gradual rise in inflation is better than highly volatile swings of inflation and deflation, as I already explained the latter leads to hoarding behaviour.

[/QUOTE]
Find a graph that measures value of USD to gold and you will see the inflation.[/quote]

Why would you do that when you can actually measure inflation directly?

[Wikkiwallana]

It has some medical uses and some applications to electronics; it's not a bad semi-conductor.

Ugh, I know, I know. Gold does have some use as a material. It's a conductor, by the way, even better than copper.

However, if that's the case I thought the idea of hard currency is that its supply is fixed? Gold still isn't a good example, because you can go dig up more and because it gets consumed in its industrial applications. Unless you want to assign dollar values to circuit boards so you can trade them in for cash?

No, copper is a better conductor. Gold is the third best conductor.

[Trotskylvania]

Stable?


Don't make me laugh.

http://seekingalpha.com/article/260900- ... old-bubble

You can't read a graph? All I see after gold standard is inflation with no deflation. Hah, you just posted a graph that hurts your own assumptions.

Find a graph that measures value of USD to gold and you will see the inflation.

You see those massive swings from high inflation to high deflation? Those are bad for economies. They are bad for investors, bad for debtors, bad for creditors, and terrible for businesses trying to rationally plan their business strategies for the near future.

[Khadgar]

Still trying to figure out why deflation is considered a good thing. I mean, if prices are dropping by the day, consumer spending will drastically slow as people wait for it to hit bottom.

[Hittanryan]

Stable?


Don't make me laugh.

http://seekingalpha.com/article/260900- ... old-bubble

You can't read a graph? All I see after gold standard is inflation with no deflation. Hah, you just posted a graph that hurts your own assumptions.

Find a graph that measures value of USD to gold and you will see the inflation.

There's a difference between reading a graph and interpreting a graph. I'm not sure you appreciate this difference. Do you know what deflation does? You know, that thing that hasn't happened since the 1930s? It makes prices fall. When prices fall, wages fall. When wages fall, demand falls. When demand falls, prices fall. And so on and so forth.

[Trotskylvania]

You can't read a graph? All I see after gold standard is inflation with no deflation. Hah, you just posted a graph that hurts your own assumptions.

Find a graph that measures value of USD to gold and you will see the inflation.

There's a difference between reading a graph and interpreting a graph. I'm not sure you appreciate this difference. Do you know what deflation does? You know, that thing that hasn't happened since the 1930s? It makes prices fall. When prices fall, wages fall. When wages fall, demand falls. When demand falls, prices fall. And so on and so forth.

And you have to repay debt, whether it is credit card debt, student loan debt, a mortgage, or bonds taken out by a business to finance growth, with money that is worth much more than the initial terms of the loan. While the value of your collateral shrinks. Which means you'll probably find your assets underwater, and financially insolvent.

[Hittanryan]

Ugh, I know, I know. Gold does have some use as a material. It's a conductor, by the way, even better than copper.

However, if that's the case I thought the idea of hard currency is that its supply is fixed? Gold still isn't a good example, because you can go dig up more and because it gets consumed in its industrial applications. Unless you want to assign dollar values to circuit boards so you can trade them in for cash?

No, copper is a better conductor. Gold is the third best conductor.

*Looks at chart*

I was looking at resistivity...oops.

[Wikkiwallana]

Stable?
(Image)

Don't make me laugh.

http://seekingalpha.com/article/260900- ... old-bubble

You can't read a graph? All I see after gold standard is inflation with no deflation. Hah, you just posted a graph that hurts your own assumptions.

Find a graph that measures value of USD to gold and you will see the inflation.

1. Constant slow growth is more stable than massive seesawing almost every year. Perhaps stable was not the word you were looking for.
2. You mean this graph?

[Hittanryan]

You can't read a graph? All I see after gold standard is inflation with no deflation. Hah, you just posted a graph that hurts your own assumptions.

Find a graph that measures value of USD to gold and you will see the inflation.

1. Constant slow growth is more stable than massive seesawing almost every year. Perhaps stable was not the word you were looking for.
2. You mean this graph?

*Stifles chuckle...*

Reeeeeeal stable.

[Khadgar]

Hey, that looks like a speculation driven bubble. POP!

[Trotskylvania]

1. Constant slow growth is more stable than massive seesawing almost every year. Perhaps stable was not the word you were looking for.
2. You mean this graph?

*Stifles chuckle...*

Reeeeeeal stable.

Take note of the relative stability of the price of gold before 1971, when we finally abandoned the gold standard, and it became a normal commodity again. It's almost as though the government strictly regulated the price of gold to ensure price stability during that period...

Egads, a conundrum. Support fiat currency and free markets, or support gold standard and statist controls.

[Lackland]

*Stifles chuckle...*

Reeeeeeal stable.

Take note of the relative stability of the price of gold before 1971, when we finally abandoned the gold standard, and it became a normal commodity again. It's almost as though the government strictly regulated the price of gold to ensure price stability during that period...

Egads, a conundrum. Support fiat currency and free markets, or support gold standard and statist controls.

Relative stability, more like relatively declining to me ( declining to the point where it had lost almost $380.00 by 1971 ). In the short term of about 3-5 years gold is generally stable, but for any long term meaningful growth gold is not your best bet at all.

[Trotskylvania]

Take note of the relative stability of the price of gold before 1971, when we finally abandoned the gold standard, and it became a normal commodity again. It's almost as though the government strictly regulated the price of gold to ensure price stability during that period...

Egads, a conundrum. Support fiat currency and free markets, or support gold standard and statist controls.

Relative stability, more like relatively declining to me ( declining to the point where it had lost almost $380.00 by 1971 ). In the short term of about 3-5 years gold is generally stable, but for any long term meaningful growth gold is not your best bet at all.

That really doesn't matter. In fact, it is to be expected. The thing was, under those regulations, the price of gold was fairly predictable, because it was fixed to a certain ratio to the dollar (35 dollar per ounce, I believe). And once that ended, and the price of gold was no longer tied to the Fed's monetary policy, the price became erratic and unpredictable.

[Amacia]

You can't read a graph? All I see after gold standard is inflation with no deflation. Hah, you just posted a graph that hurts your own assumptions.

Find a graph that measures value of USD to gold and you will see the inflation.

There's a difference between reading a graph and interpreting a graph. I'm not sure you appreciate this difference. Do you know what deflation does? You know, that thing that hasn't happened since the 1930s? It makes prices fall. When prices fall, wages fall. When wages fall, demand falls. When demand falls, prices fall. And so on and so forth.

http://seekingalpha.com/article/214198- ... -deflation

Sometimes but not always.