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#1
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I'm not going to try and convince you. You can believe what you want to believe. The US is in 23 trillion dollars worth of debt and that number is only growing larger. The printing presses at the mints are running overtime. But, hey, if you don't see a problem with that, ok.
It's true. But let me give you an example that may hit you closer to home. What was Manhattan purchased for? Come one, tell us? |
#2
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Quote:
I'm not sure how purchasing Manhattan relates to anything being discussed re: hyperinflation or the role precious metals would play in a new economy where basic survival staples need to be secured in place of currency. Is there a source for the story about Germany? Last edited by packs; 07-03-2019 at 12:44 PM. |
#3
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The question of why someone would trade food or water (or anything elso of value) for worthless metals has been brought up several times in this thread, most recently in regards to Venezuela.
Let me imagine that I am in that country now and in the business of selling food. The current exchange of the Venezuelan Bolivar to the US $ is .10 cents. If someone has 1,400 of these jelly beans (I mean VB's) that equates to approximately $140 US$ in purchasing power. If someone, on the other hand, has a one ounce gold coin, that equates to $1,400 US$. If you are the vendor and your business is selling a commodity (in this case food) would you rather accept paper currency that is in a state of extreme flux or a gold coin that is recognized as having a store of value everywhere in the world for centuries? I want the gold coin everyday of the week and twice on the proverbial Sunday. Not when everything is going smoothly, but when the bad stuff hits the fan. There is no longer any confidence that the paper you accept today will have anything like the same purchasing power tomorrow/next week. When paper currency is reduced from a state of fiat currency that prevails as long as the users have confidence in it's issuer, into a blatant out of control street hustle con game it loses it facility to carry out day to day business transactions. Just my take on things, I am perfectly amenable to everyone holding their points of view and realize that I am in a distinct minority in the USA (at least for now). Last edited by 58pinson; 07-03-2019 at 12:50 PM. |
#4
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But your example is made on the assumption that the person selling goods has access to enough goods for an indeterminable amount of time that they can afford to sell food and still have more food to eat after the sale. It also assumes the vendor has access to outside markets, which the people of Venezuela do not.
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#5
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I know you're from the city, but do you know what a farm is? Seriously?
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#6
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Quote:
Here's a scenario that is more true to life than what I've seen put forward: I'm a merchant who sells food in a populated city in Venezuela. I sell all my food for as much gold as I can get. Now I'm hungry. Where do I go to exchange my gold for food? My customers? Other vendors like me? Won't they want to hold on to something for themselves? |
#7
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#8
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I don't see any assumptions in my post except that basic human affairs and interactions will continue if they can. You seem to believe that paper (1988 Topps cards) are preferable to conduct those transactions. In normal times I have zero arguments with that position. In troubled times things can sometimes become much more stressful. What the theoretical vendor in any country would have in such times if they accepted gold/silver instead of paper in something of much more value than paper currency that has lost the confidence of the populace. You are also transposing the merchant and the farmer in your illustration.
Throughout history, and this is especially true in Asia, precious metals have been revered as stores of value not subject to the capricious wiles of corrupt and despotic central governments. If they don't interest you I fully understand. You have 99% of the US population right in your corner. I just see things a little differently. You know you had asked if there was any backup for the Germany city blocks changing hands for a few gold coins. These type of events were reported fairly commonly during the height of the Weimar hyper-inflation of the 1920's. I might mention that there are a fair number of holocaust survivors who owe their lives to being able to bribe officials with gold or diamonds and such to get out. Anyway, off to watch Sweden/Netherlands in footy. Cheers! |
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