I think if you understood the value of gold/silver, you could of answered this yourself. The gold standard is what kept our value of the dollar balanced. Ever since the gold standard was taken away, hyper inflation has run rampant. There is obviously a direct correlation between gold and the dollar.
Except that this is simply not true. I know it's popular to say and popular to repeat and people who say this think they know something that other people don't, and that makes them feel special or something, but it's just plain not true
. Did you bother to check the link showing US inflation levels over a longish period of time? Notice something interesting? It's when we went off the gold standard, and when we instituted the Fed that our currency actually become more stable
It's still had fluxuations, but even the worst time period (during the Great Depression) is pretty much normal for the period of time prior to leaving the gold standard. I just think you believe this because you've been told this, but you've never actually bothered to check and see if it's true. I just don't know how more clearly to state this. What you are saying is purely, simply, and provably false.
There are certainly issues with the way the Fed manages things, and it does not always make the best decisions, but overall since adopting that system of managing our currency, the US economy has done much better and been much more stable than it was before.
As for your question, gold has endured for six thousand years. Sure a country here or there might make some bad choices, but the standard didn't go away. Our federal reserve is a total scam. They print money based on their profit margins so they can loan out more or give money to companies for bailouts.
First step when assessing a conspiracy theory: Does it make sense? What motivation do a bunch of bankers have to do this? Remember, their profits are based on dollars as well. Think about it. It's in their best interest to make the thing that they own a lot of actually retain its value. Again, it's not perfect, but it's better than any other system we've come up with yet.
Either way, the people get taxed and suffer a drop in quality of life.
Yes. And I'm not sure what you think this has to do with the Federal Reserve Banking System? The Fed doesn't have anything to do with taxes. You're mixing up two very different things. Let me be very clear. I agree that GSEs have the potential to make really bad decisions and be influenced by politics rather than sound business. But that doesn't mean that they must do these things, or that they are, and it certainly doesn't mean that some alternative is always going to be better.
Why do you think the GOP want to cut social security, medicare, education, the FDA, and other programs? It's because the bankers(Fed) blew all the money on these failures and now we have to tighten the belt on our common citizens.
Huh? As a Republican, I can tell you that's not even close to the reason. To the degree that we do want to cut those things, it has nothing to do with banking. It has to do with the cost of the programs themselves. That's not going to change regardless of what our currency is based on. The government
spends too much money on those things. Again, I suspect you are somehow confusing the Federal Reserve with the Federal Government. Despite sharing the same word in their names, they are *not* the same things.
It's ironic how much of a tax break oil companies get and how it's taboo to tax large corporations even though it's small businesses that hire most people in a strong economy.But they will cut ever program that benefits struggling Americans and continue to bail out these crooked companies.
WTF do tax rates have to do with the Federal Reserve? Seriously, at least keep your conspiracies straight. Edited, Sep 20th 2011 6:58pm by gbaji