Inflation Is Theft

:laugh: "Thou shalt not kill":laugh:

 

Well I would have figured from reading the Old Testament that God had created gold and silver for things such as temple decorations. (Notice that He didn't ask the Isrealites for their currency, but for their earings and bracelets. This is somewhere in Exodus. Isn't it possible that their form of "currency" was something other that gold and silver. Somewhere I read that the first "currency" was grain, but I'm not sure exactly where I read that.)

And yes, I'm all for whatever extends the life of my tires!

 

Well, it's a good thing that our currency isn't just paper, isn't it?

 

Galatians 5:14
14 For all the law is fulfilled in one word, even in this; Thou shalt love thy neighbor as thyself.

I don't know if you could argue that inflation is good for everyone. Who is it really good for and who is it bad for?

Proverbs 14:20-21
20 The poor is hated even of his own neighbor: but the rich hath many friends.
21 He that despiseth his neighbor sinneth: but he that hath mercy on the poor, happy is he.

As a common wage slave, I find that my income doesn't go as far as it used to. Increases in my wages don't keep up with inflation. So essentially, even though I do the same work, my work is being devalued along with my money.

 

Anything that has intrinsic value could be currency. Joseph bought almost the whole of Egypt with corn. What is the value of a dollar?

 

It'll have value to those who believe it is currency backed with the authority of our government. And then when it is found to be counterfiet, they guy that made it will be headed to jail!

If you wish to only trade what you hold to be valuable (your labor, your product) for only which you hold to be valuable (gold, someone else's labor) instead of a dollar bill which represent value, so be it. Just don't make it into a sin for the rest of us who don't see the big deal.

Yes, we take a risk in carrying dollars instead of actual gold. Yes, it is a possibility that those dollars could lose the value(of goods or services) that they represent. Of course they could also gain in the value that they represent. But, we would risk the same things even if those dollars represented a certain amount of actual gold or silver.

You know what? I've heard this all my life. Is it really your work that is being devalued or is your work just not in demand as much anymore? Here's a second question: Are you dollars not going as far or have your wants exceeded your needs?

When I start complaining about T's paycheck not going as far, sitting down and comparing today's budget against that of a few years ago, generally sets me straight again. Three years ago, we didn't: pay for all 5 to take karate, have a car payment, think the air conditioning should be set at 70, eat out or eat convnience foods instead of cooking, have two chronically ill kids with doctor bills to match, etc. Three years ago, I was also productive and brought in a certain amount of money myself.

Circumstances change, if we can't change with them then we aren't going to make the best use of our dollars. Complaining that our dollars aren't backed with gold and are therefore intrinsically valueless isn't going to change our spending habits.

 

If shiny things went out of style and large deposits were found, gold inflation would go through the roof! Although it is still a pretty good conductor and a highly malleable metal. The 'so-called' intrinsic value of gold is also perception based like fiat currencies.

One problem with commodity backed currencies is that the need for the currency can quickly outgrow the gold supply the backs the currency. Wealth is being generated all the time. But gold generation/acquirement will never be able to keep up with that pace, resulting in a lack of trust that the commodity backed currrency actually is backed by said commodity. The commodity backed currency will lose value and, viola, inflation. War to acquire the gold of another country is always an option.

 

Well I can't argue that gas is going up! Not when T drives 100 miles a day to work and back.

But, I also can't see any real proof that rising gas prices mean less value for the dollar. If we used gold, would we not have to use more of it to buy the same amount of gas, just as we have to spend more dollars?

 

It's called supply and demand, and no matter what backs the currency, the economy is still subject to it. If there's a shortage of gas, you will use more gold, dollars, or wampum to pay for it.

No. It's still based on supply and demand, and the arbitrary value placed upon the gold, silver, copper, platinum, etc. Because of the use of silver as a conductor, it's expected to rise more in value in the coming years. Supply and demand.

There didn't used to be a minimum wage, and there shouldn't be one now. The market should decide. (However, since we have had one, erasing it would be disastrous now, so I don't think it should be abolished.)

Yep. It's supply and demand. If I remember correctly, a sheckel of silver was based on an amount of grain. So, a sheckel would fluctuate wildly, based upon supply and demand.

Nothing that is used for currency is inflation proof. A US dollar is based on a portion of the GDP. However, no matter what is used to back the dollar, if they print more than is backed, they become worth less, and that can create problems.

No inflation is disastrous to an economy, just as deflation or stagflation is.

 

First, every time I use a credit card I am creating money out of nothing.

Second, 90% of the "money" in circulation is electronic transfer.

Third, when we were on a gold standard half the people lioved in poverty. There was the working class, few professionals like doctors, lawyers, and engineers, and very few rich people. The "middle class" didn't start to baloon until after WW2. After the freak post war conditions began to fade we were headed for trouble until the world went off the gold standard.

You young people who have never seen a day of hard times - neither have I- think you will be in the gold owning class if we reverted to gold money. Fat Chance! Most of the working class never had any gold.

 

How difficult is it to understand that our dollars are based on portion of the GDP? It is based entirely upon labor.