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Dejavu

Dejavu

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That guy's an idiot. A lot of countries currency are tied to the gold price, Sweden being one of them. Doesn't mean we can buy that car for 1/10 the price of the USD. I'm not entirely sure, but I believe the Euro is also tied to the value of gold. Doesn't mean 1 euro is worth 100 dollars. And he's wrong, its not the price of the dollar constantly falling (although it has been since the Iraq war started), the price of gold HAS, as a matter of fact, gone up in price as well.
 
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Incorrect... the swedish krona is a floating exchange rate fiat currency and has not had its money's value tied to the price of gold since WWI. In fact their currency was tied to the value of the US dollar for some time.

Also you are mistaking the difference between price and value. The value of gold remains unchanged but when it is unhooked from the currency the price rises as more "money" is printed with no real backing.
 
You going to blame this on Bush too?
 
no country's money has been tied to gold in the same way since about the 1970s I believe.. by Nixon was it? I forget... it did actually do good for the economy somewhat but then other things screwed us :P and no, this isn't Bush's fault.. this is our whole country's fault. We import FAR more than we Export. The spending of our government is increasing while people demand taxes to remain the same. The jobs are being outsourced more and more with too few NEW jobs being created in our country. The greed of corporations combined with the consumption rate of our country is killing our economy.

Hehe, wanna know an interesting fact? Right now all oil is bought and sold in the US dollar, that's a good thing for the US economy because that means the rest of the world has to buy the dollars from us and well that's money into our economy, but a month before we invaded Iraq, Iraq announced they were going to start selling oil in Euros. It's not the sole reason for the war but it is one (and this is coming from someone I know who WORKS in DC, actually being shipped over to Afghanistan sometime this month too since he's in the army).

Economy is a very interesting thing, it used to be that the Chinese banks would buy dollars (it used to be every bank would buy gold and stack it up in their vaults) and now they are starting to exchange their Dollars for Euros. This is bad for the US as it shows little belief the US dollar will become strong again. And since our government has a ton of debts to other countries well.. if they start calling in their debts we'll be in a depression. That won't happen for now primarely because the countries that we are in debt to are also the country that has their #1 business with the US (i.e. China which ships SO much to us since they produce it there). When the Chinese are able to finally have their own people able to match (and this isn't an if, this is most definitely a when) the purchasing abilities of the US people, we'll prolly see them shifting all their last bit of US Dollars in their vaults to Euro, calling in their debt, and saying "screw you" to US.. hehe...

The Chinese are pretty smart, it's true that they don't have enough domestic jobs for their people so what they do is they buy mines and such in say southern Africa and send their people there to work :P I don't doubt that when they have the purchasing power to keep their businesses up, the US economy will be seeing some problems. Unless we start creating more jobs or new technology that only we have the ability and know how to do and so we have to have other countries pay us for it (example being Stem Cell research which is something Bush's administration DID slow down so that is a fault of their's.. the Chinese and Japanese I believe have been catching up in stem cell research because of this) or the government will have to start cutting back on things like schools, military, hospitals etc. Because, understand there is NOTHING that says they HAVE to pay for schools, military, hospitals, etc. The only laws there are for what the government HAS to pay for are things like social security, medicare and those things.

Another interesting thing, when social security and such was made a law, the average life span was 54, and Social Security started for you at 60 then. 6 years for people to die off so not as many are sucking money out of the system (as it is one way to say). It's reason that people are saying SS should be raised to a higher age so more people are working longer, this does two things, lowers the cost of SS and raises the Revenue the government gets (through taxes) and thus the economy has a better fighting chance :P

Sorry to say so much, but I was talking to that person I mentioned earlier who works in DC about all this and I figured I'd share it with anyone who might wonder a bit about some things with our economy. I really glossed over a lot too as there is SOOO much to it, but ya.. the jist of it was said. The video was interesting, but hardly accurate as it doesn't account for SOO much else in economy XD

You know what'd REALLY help our country? (and the world in general) What'd really help is if people gave more thought to the future, distant future. We're far too focused on the here and now and selfish desires lol.
 
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Elemmire said:
Another interesting thing, when social security and such was made a law, the average life span was 54, and Social Security started for you at 60 then. 6 years for people to die off so not as many are sucking money out of the system (as it is one way to say). It's reason that people are saying SS should be raised to a higher age so more people are working longer, this does two things, lowers the cost of SS and raises the Revenue the government gets (through taxes) and thus the economy has a better fighting chance :P
Click to expand...

This is probably the only thing i will ever agree with you on Ele. Social Security was made when you were going to live to be *maybe* 65. At this day and age there are people starting second careers at 65 and going back to school.
 
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Assuming this fellow were right and the corvette would only be worth $1200, it would still take you a long time to make $1200... One might argue, it will take the average person less time to accrue the money needed to buy a corvette in our current economy than it would in the economy he describes.

An example of this would be to break it down to numbers we understand a little better. If the example held true in terms of values in all things, then what is a $4.00 hamburger meal would only cost you $0.08. Assuming all things values dropped like that and that the well paid burger flipper makes twice the cost of his average product an hour (that tends to hold true in alot of food service industries, I find) then he would go from making $8.00/hour to $0.16/hour

The value of all things can be measured in the cost of man hours. No matter what your currency's value is it will always buy you the same amount of time. I recently got back from a trip to mexico, where the US dollar is worth 10 Pesos. That doesn't mean I got what should have been a $100 dinner for $10.00. That means I paid 1000 Pesos for it. Slap as many digits on there as you want, but it always comes down to man hours. A minimum wage job *SHOULD* pay you 2 gallons of gas an hour, or one appetizer at a good (not great) restaurant. That has been the standard for many many years, no matter where you are in the US. Fuel and Gold fluctuate rapidly in the current US market, but more often than not the value of an hour has stayed the same when buying goods not reliant on either of those other two products.
 
if that happened we would just have an economy like in the 1950s

it would be nearly the same thing, just with a lower number

"gee mom, can i have a shiny nickel to go get me a hot dog?"
 
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