All I can say is -
If you think inflation is bad ... try deflation.
Inflation of over 10% can be bad. Can be ... it really has to be closer to 20% to be definitely bad.

Deflation of .1% = death.

Whatever you got today ... is cheaper tomorow ... Now lets see what happens in the real world.

It sounds awful when you only post 1 side ...

Cool.
Srinath.

You know what makes a diamond valuable ?

Simple question, - you cant eat it, you really cant use it as an industrial raw material - well you can, but those are ugly diamonds that are worth a lot less than the pretty tear drop shaped ones on angelina jolie's ear ...

So what makes a diamond valuable ...










Because we have all agreed that it is.
Same with USD.

Drug smugglers in latin america, and gun runners in cambodia want to be paid in USD ...

we can print it as much as we like. In fact we should print some really really really big bills and hand it over to the chinese ...

Cool.
Srinath.

I had to give my wife a diamond before we got married because its traditional. To me a diamond isn't worth anything except industrial diamonds used for cutting. The way the miners are treated and all the corrupt blackmarket activity that goes along with diamonds that's one tradition we need to break.

srinath wrote on 06/17/13 at 12:31:21:


Sri your wrong..... very very wrong.. I and I think you know it. Please correct.

srinath wrote on 06/17/13 at 12:31:21:


So what makes a diamond valuable ...

its rarity and resistance to the elements which make it a good "store of wealth". Which is but one factor in a commodity being used as currency.

Fiat money is not a commodity... no one would compare a diamond to money as a currency other than as stated above. Gold and silver, also commodities, also satisfy as a store of wealth but are also divisible (will retain the same value separate as whole for each of the part, a diamond does not).

To print up money that has no productivity tied to it.. is stealing from those that have money that does have productivity tied to it as it all enters the same economy. Printing up money to give to drug smugglers steals the wealth from retirees that earns and saved, and now hope to live on the store of wealth they accumulated.

Banks have always played games on the economy. They created ups & downs in the economy even prior to the fed. Of course, they did it for a reason, because they wanted the central bank. If people want to actualy understand the economy & understand how things were prior to the fed & dureing some times when the banks hadnt colluded to screw the people they need to read Creature from Jekyll Island. After thet, Pieces of Eight.
Weve been taught that inflation is natural & desirable, & how horrible deflation would be..
Told of the horror of Libertarianism, told of the horror of real money instead of fiat currency,, Has it not yet become clear that the things most demonized by the media are things people really have no understanding of EXCEPT what that same media has told them,,

& How many people have been demonized in the media, then bombed?
How many times has it come out later that we went to war on lies?

WHY do people continue to believe anything theyre told ?

GO READ something that conflicts with what youve been taught & SEE if it doesnt make more sense than what we have been told.

I get so tired of seeing these arguments about money & economy between people who havent a clue.,



Understand Problem/REaction/solution


There ARE enough of the monied people to create economic & societal problems which WILL create a predictable REaction by the People
& thyeyre just sittting there Waiting with
The Solution,,which is what they wanted to do in the first place.
The banks set up the situations economically to make the People
happy to have the Fed, because the feds "Job" was to keep things stable.

HA!! Look how they failed in that,, YET,, they have been allowed to continue to exist.,

WE need $$$
T-Bills are printed
Sold @ auction
$$$ is printed & put into circulation
You & I now owe the Fed interest on all that $$$

Not a perfect rundown,but close,

Spend some time here, you cant know less about $$$ afterwards,,


http://www.activistpost.com/2011/08/g-edward-griffin-mandrake-mechanism-and.html

Pine wrote on 06/18/13 at 11:05:56:


Again - picking nits -
OK You have dollar bills in 1 hand and gold (or diamonds if you prefer) of equal value in the other. You will spend them to buy food right now (cos as far as I know you cant eat either)
@ what point will the gold be better - and you are not "YOU" you are the common man in the rest of the country. And why ?
No, you cant say I'll hide it, and a year later the gold will be worth more. That means you starve to death in the year to come.

Gold or diamonds have no intrinsic value - much the same as $$$, beans have intrinsic value, the rest do not.

There is 1 situation where the gold will be more valuable than the dollar bills of the same value.

Where the end of the US is here but not the end of the world.

That is the only situation where gold beats the US$ in terms of what you can do with it now. @ the end of the world no one is going to trade their beans for the dollar or gold.
@ the end of the US, the dollar will be worthless, and gold will not.
If the US economy improves WRT the rest of the world gold will dimnish in value versus the US$. If the US economy gets worse WRT the rest of the world, gold will advance WRT the US$.

There is a very very thin window of advantage for gold and an almost as thin window of disadvantage.

Cool.
Srinath.