Phat's Bookshelf

Do you recall hearing about the great depression? Do you know what happened to most of the banks? Banks are now required, as in legally required, to hold specific amounts as reserve because of that tragic experience.Do your research, Phat, BEFORE you stick your foot in it.

WTF you talking about? The subject I was speaking to was your question on why banks don't lend out their reserves.That has fuck all to do with the laundry list of disjointed topics you responded to me with.I answered your question. Banks can't lend out their reserves because they are bound by law not to! And the reason is the liquidity issues that caused bank failures all through the 1930s.Don't you be telling me au contraire. I KNOW the history.

I don't think so. Reference points for relative values is ... relative. That's why we reference things in 1990 dollars, 1960 dollars or some other year's dollar. Your choice depending on the political spin you want to give the comparison you're looking to make.I could suppose one "absolute dollar" metric might be the original dollar as authorized by congress in 1791. It was minted in gold or silver. Gold content was required to be 1.505 grams.So back then a dollar was worth 1.505 g fine gold. Today 1 gram of fine gold is valued at $57.81 per gram. The original dollar is the gold valued equivalent to $87.00 today. So, in absolute (1792) dollars your $10 lunch cost 11¢. Someone should check my math.

For millennia all over the world most societies relied on gold as their medium of exchange and the only store of value most would trust. Economies were small and there was (usually) plenty of gold around to handle the disruptions and expansions.That changed when liquidity issues in larger and growing economies could not be serviced with gold. As much as there is there’s just not enough of it. Gold is not so fungible an asset in a digital age.Gold is a wonderful emotional commodity popular society still cherishes and hoards. But to base an economy as large as the USofA on a nonfungible commodity cannot but spell economic disaster in the very short term and, physically, cannot be done in this economy. There aren’t enough resources available to make the change over. If your currency is to be based on gold you kinda have to have the gold. There isn't enough. As for our future? Mother Nature will determine how sever our punishments will be regardless of what we do with our commodities or economies.

Well, my friend, like your views on religion your views on gold have already lost. Reality is well past your old economics.And like your religion, Phat, you have fallen in with vipers, conmen and republicans out to convince you of their fantasies. Read their books and argue their points but for god's sake, Phat, stop putting actual $$$ into their schemes and their wallets.P. T. Barnum was right, Phat, but you keep getting born again with every book and video.