Comments on: Bi-Metallic Standard: Is there enough Gold and Silver? http://islamicpolitik.com/2009/07/bi-metallic-standard-is-there-enough-gold-and-silver.html?utm_source=rss&utm_medium=rss&utm_campaign=bi-metallic-standard-is-there-enough-gold-and-silver An invasion of armies can be resisted, but not an idea whose time has come Mon, 04 Jul 2011 03:09:01 +0000 hourly 1 http://wordpress.org/?v= By: YusefH http://islamicpolitik.com/2009/07/bi-metallic-standard-is-there-enough-gold-and-silver.html/comment-page-1#comment-1295 YusefH Wed, 22 Dec 2010 14:35:07 +0000 http://islamicpolitik.com/?p=801#comment-1295 I agree with Yusef - and furthermore, as I understand it the primary requirement for something to be used means of exchange is scarcity. As soon as you want to move away from barter, this is the obvious need. Instead of this we use fraudulent warehouse tickets. Seems to me that the main reason for fiat currencies, fractional reserve banking systems etc. is that it allows a privileged class to quietly mop up real increases in wealth that would have otherwise resulted in falling prices and better living conditions for the population at large. Keynes provided "intellectual" justification for this. But let's face it, is it a good idea to run a country on the advice of a man who would reply "In the long term, we're all dead" ? The idea that falling prices wreck the economy appears to me to be a falsehood. From simple observation - on the basis of what happens in the IT sector. It grows rapidly, the goods, as it were, improve and increase, and despite constant increases in the money supply as well, the prices still manage to fall. Yet it is thriving. This provides an illustration of how wealth can actually increase for the majority as a result of productive economic activity. The idea that the less well off are going to stash wads under their mattresses as soon as they have anything spare is one of the most ridiculous justifications for keeping people down ever made.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('1295','YusefH'); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('1295','YusefH','I agree with Yusef - and furthermore, as I understand it the primary requirement for something to be used means of exchange is scarcity. As soon as you want to move away from barter, this is the obvious need. Instead of this we use fraudulent warehouse tickets.\r\nSeems to me that the main reason for fiat currencies, fractional reserve banking systems etc. is that it allows a privileged class to quietly mop up real increases in wealth that would have otherwise resulted in falling prices and better living conditions for the population at large. Keynes provided \"intellectual\" justification for this. But let\'s face it, is it a good idea to run a country on the advice of a man who would reply \"In the long term, we\'re all dead\" ? \r\nThe idea that falling prices wreck the economy appears to me to be a falsehood. From simple observation - on the basis of what happens in the IT sector. It grows rapidly, the goods, as it were, improve and increase, and despite constant increases in the money supply as well, the prices still manage to fall. Yet it is thriving.\r\nThis provides an illustration of how wealth can actually increase for the majority as a result of productive economic activity. The idea that the less well off are going to stash wads under their mattresses as soon as they have anything spare is one of the most ridiculous justifications for keeping people down ever made.'); return false;">Quote</a></div> I agree with Yusef – and furthermore, as I understand it the primary requirement for something to be used means of exchange is scarcity. As soon as you want to move away from barter, this is the obvious need. Instead of this we use fraudulent warehouse tickets.
Seems to me that the main reason for fiat currencies, fractional reserve banking systems etc. is that it allows a privileged class to quietly mop up real increases in wealth that would have otherwise resulted in falling prices and better living conditions for the population at large. Keynes provided “intellectual” justification for this. But let’s face it, is it a good idea to run a country on the advice of a man who would reply “In the long term, we’re all dead” ?
The idea that falling prices wreck the economy appears to me to be a falsehood. From simple observation – on the basis of what happens in the IT sector. It grows rapidly, the goods, as it were, improve and increase, and despite constant increases in the money supply as well, the prices still manage to fall. Yet it is thriving.
This provides an illustration of how wealth can actually increase for the majority as a result of productive economic activity. The idea that the less well off are going to stash wads under their mattresses as soon as they have anything spare is one of the most ridiculous justifications for keeping people down ever made.
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]]> By: Faraz http://islamicpolitik.com/2009/07/bi-metallic-standard-is-there-enough-gold-and-silver.html/comment-page-1#comment-1271 Faraz Mon, 23 Aug 2010 18:59:10 +0000 http://islamicpolitik.com/?p=801#comment-1271 would appreciate if you could send a copy of the reply to my email smfaraz2000@yahoo.co.uk . Jzk khair<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('1271','Faraz'); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('1271','Faraz','would appreciate if you could send a copy of the reply to my email smfaraz2000@yahoo.co.uk . Jzk khair'); return false;">Quote</a></div> would appreciate if you could send a copy of the reply to my email smfaraz2000@yahoo.co.uk . Jzk khair
Reply – smfaraz2000@yahoo.co.uk . Jzk khair’); return false;”>Quote
]]> By: Faraz http://islamicpolitik.com/2009/07/bi-metallic-standard-is-there-enough-gold-and-silver.html/comment-page-1#comment-1270 Faraz Mon, 23 Aug 2010 18:58:27 +0000 http://islamicpolitik.com/?p=801#comment-1270 A question I have is, how would we finance imports and receive for exports? Suppose a nation has twice the amount of imports than exports under the gold standard. Would it not exhaust all the gold it would have in the nation in future going at this rate?<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('1270','Faraz'); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('1270','Faraz','A question I have is, how would we finance imports and receive for exports? Suppose a nation has twice the amount of imports than exports under the gold standard. Would it not exhaust all the gold it would have in the nation in future going at this rate?'); return false;">Quote</a></div> A question I have is, how would we finance imports and receive for exports? Suppose a nation has twice the amount of imports than exports under the gold standard. Would it not exhaust all the gold it would have in the nation in future going at this rate?
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]]> By: Yusuf http://islamicpolitik.com/2009/07/bi-metallic-standard-is-there-enough-gold-and-silver.html/comment-page-1#comment-1226 Yusuf Fri, 21 Aug 2009 10:33:57 +0000 http://islamicpolitik.com/?p=801#comment-1226 In a bimetallic standard or for that sake a pure goldstandard, the question is not whether there is enough gold to cover all transactions. Because the price of gold, since it is a commodity itself, would adjust in prices. So you actually do not need much gold to have an effective currency. This means that 10 apples could cost 1 gold piece one day and change to 2 or 1/2 gold piece in the future, and this is actually not a problem, therefore when much gold is poured into society prices on other goods compared to gold would change. So the problem is not regarding the amount of gold, even though there is a lot of gold in the world.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('1226','Yusuf'); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('1226','Yusuf','In a bimetallic standard or for that sake a pure goldstandard, the question is not whether there is enough gold to cover all transactions. Because the price of gold, since it is a commodity itself, would adjust in prices. So you actually do not need much gold to have an effective currency. This means that 10 apples could cost 1 gold piece one day and change to 2 or 1\/2 gold piece in the future, and this is actually not a problem, therefore when much gold is poured into society prices on other goods compared to gold would change.\r\n\r\nSo the problem is not regarding the amount of gold, even though there is a lot of gold in the world.'); return false;">Quote</a></div> In a bimetallic standard or for that sake a pure goldstandard, the question is not whether there is enough gold to cover all transactions. Because the price of gold, since it is a commodity itself, would adjust in prices. So you actually do not need much gold to have an effective currency. This means that 10 apples could cost 1 gold piece one day and change to 2 or 1/2 gold piece in the future, and this is actually not a problem, therefore when much gold is poured into society prices on other goods compared to gold would change.

So the problem is not regarding the amount of gold, even though there is a lot of gold in the world.

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