Economics Gold as Currency, How do you think it would play out?
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 May 24 2010, 09:39 AM
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Senior Member
4,515 posts Joined: Mar 2010 
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I was just wondering if we could explore the concept of "legal tender" here.
1) The meaning of leagl tender where money is concern 2) The body issuing the legal tender. This post has been edited by faceless: May 27 2010, 02:41 PM |
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May 24 2010, 10:41 AM
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Senior Member
4,027 posts Joined: Oct 2004 
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QUOTE(C-Note @ May 22 2010, 05:34 PM) Sorry if i tumpang TS thread but governments can just print money when economy's down right? 'Stimulus package'. Or are there governing bodies that supervise every country's money factories? you print too much money only will hurt yourself as your currency value drop. Added on May 24, 2010, 10:58 am QUOTE(Beastboy @ May 22 2010, 11:43 PM) Yes trading will be limited. It forces u to produce only goods that ppl are willing to trade for, which isn't so bad if everyone's back to basics: food, clothes, medicine, horseshoes. Craftsmanship will rise again as ppl concentrate only on producing necessities. Yes I admit, bartering will never do what paper money can do so no more Dow Jones, etc. But isn't speculative markets one of the first things to go if gold-backed currencies disappear anyway? speculation will still happen if we use gold backed currency, the biggest problem will be gold speculation, the value of everyone's money will now be at risk. and country will have lost much control on their monetary policy, inflation and deflation will be determine by gold production rate.using gold backed currency or gold standard will leads to deflation whenever an economy using the gold standard grows faster than the gold supply. the value of money will go up while value of asset will go down. the housing market like today will collapse because people will not want to take loan to by house, as the house will deprecate and money you pay for loan appreciate. This post has been edited by robertngo: May 24 2010, 10:58 AM |
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May 26 2010, 07:22 PM
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Junior Member
420 posts Joined: May 2010
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I don't think it's viable as gold is an extremely rare mineral
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Jun 13 2010, 12:01 PM
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Senior Member
804 posts Joined: Sep 2007
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QUOTE(ComposMentis @ May 26 2010, 07:22 PM) I don't think it's viable as gold is an extremely rare mineral Isn't gold available throughout the globe? Correct me if I'm wrong. |
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