nairbe
'Runner,
Just replace government with church and you are right on the money.
Ignorance sure is bliss.'

Sorry mate a bad idea. I would never vote for it. Church is not an organisation as such but a group of called out ones. When church has ruled in the past it has been as corrupt as secular Government. Any smart Government though will govern with God's principles in mind. If they don't we end up in the mess we have now with epidemic drug usage, teen pregnancies, std's, perversions, everyday violence, abortions on tap etc. Any honest observer can see the stupidity of ignoring the commonsense found in God's word.

I runner need to ask why?
Mate why do you move in to so many threads and bring your hobby horse to play?
Yes know we all, me too, divert threads.
But why, this is nothing about God, I could tell of the millions of dollars Sydney C of E or what ever it is called invested badly and lost,God punishing them?
Gold first was wanted for its look if a true fall comes to the world economy it will have no value.
Like the coins and paper money it can not be eaten not buy goods that do not exist.

Easier said than done, wobbles.

>>It can easily be revalued by mutual assent to whatever amount is agreed<<

With world GDP around $60 trillion, the price of gold would need to increase at least tenfold to meet the needs of gold-backed currencies. Which, as I'm sure you can see, would create utter chaos around the world, especially in poor countries.

The puzzle to me is why there is all this fuss about "fiat currencies".

>>That's how the whole fractional reserve system started - Gold Merchants borrowing and lending on more than the amount they actually held in their vaults.<<

Well... exactly.

They realized that there was no point in actually holding gold, when you could issue a promise. And once people accepted that promise at its face value, it didn't need gold any more. A currency's value rose and fell on the solidity of that promise, which was itself founded on the credibility of the economy that backed it.

And don't forget that the gold standard relied upon the price of gold being fixed.

At $35 an ounce. It is presently $1,400. And to back world trade, it would need to be $14,000.

Do you see the problem?

In a very real sense, having a currency backed by the performance of the country that produces it is a far more intelligent way in which to conduct world trade, than to rely upon the "value" of a lump of metal.

@Pericles

"""
The puzzle to me is why there is all this fuss about "fiat currencies".
"""

I thought it was because it gave a select few the power to create any amount of it when ever it suited them with consequences for the little guy and windfalls for the big guy?

Quantitative easing 1,2,3 seems to show this quiet well wouldn't you say?

I'm no economist, just my observation, perhaps it's wrong?

the only....*CONSTITUTED legal tender..*is COIN

notes were* promises to PAY..in COIN
credit..is a promise to pay...IN legal tender..[COIN]

wether the coin is gold or silver..[or coppers]..isnt the case in point...its that those who hoarded the gold silver copper [coin]...

and issued..BANKbills..BANK notes...[a means by which banks move credit between banks...by a CONTRACT...[note]..to supply COIN by written promise]..hence each note has two sig-natures

its too late to rebuke..the bassthardry..that saw the bankers steal the giold silver[and lease it out to the member bankers...who then sold it onto the market..but who signed a LEASE on it..[a lease that must be redeemed..in lawfull [constituted coin..like for like]...gold for gold..silver fior silver..copper for copper]

thing is all banks/bankers are complicite in this colluded theft
add the fact..they are all bankrupt...[and keep needing more ofr the govts baqilouts]..its clear the reason..for giving control of the fed to the bankers is gone

govts must seize back the running of the mint and the fed
seize back control of the assets..the bankers have given to the imf..and the world bank etc..[seize back the origonal shares..bought with the unlimited credit..that has bought our total global debt...[private and govt..to over 4 QUADRILLION..[$us]...

the total of the issued notes coin..in us dollars..is near 800 billion
but the fed was sold for the fixed price of 44.4 billion...[12 plate size gold coins...[issued under govt right of seignorage]..with a total face value of 1/12..th..of 44.4 billion..would buy back the us fed/mint..fort knox etc

ok the 'gold'..held in fort knox sems to be RUSTING[according to the cleaners]..so its not really gold...but we are now in a most dangerous state...

we have CRIMINALS running the money supply..have used it for the last 70 years..to FORCE govt to tax its people..just to pay back..*ursury..while ever more endebiting the rest of us mugs..as intrest accumulates upon intrest..for what is after all only a fiction

govts lending..ITS OWN MONEY..from,..a criminal cartel
who inflate..or deflate its worth..GLOBALLy..to bring to power tyrants and imbisiles..willing to murder or abuse their own people..without the hindsght of wikiexposure..for a safe sound SWISS baqnk account...held in swiss money backed by silver..[or gold]

lets start again with nickle
one cent equals one fiat dollar
issue all NEW govt funds in coin..[under right of seignorage]

and let those who play their games on the mug punters..
run their fiat credit scam...BUT NOT ON TAXPAYERS..living persons

only multinationals and miners
fissure men..and loggers..[those raping the earth..for easy credit..to their own discredit]