Why the financial system must and will collapse

Pennywise

Nosht wrote: »

Sounds just like a Ponzi Scheme to me.

Absolutely agree. The "global economy" is exactly that. What always gets me is how the economists and politicians keep trotting out the old "we're all getting richer" mantra due to economic growth. Fact is that "money" is only a relative measure of underlying wealth and the worldwide economy must always be "in balance" - i.e. monies owed = monies oweing and assets = liabilities. Unless we have martians bringing rolls of bank notes onto the planet, the "wealth" of the planet can't increase or decrease - it can only "shift" from one person to another or from one country to another, etc. So economic growth is impossible unless it is matched by economic contraction somewhere else. At the end of the day, it is a person's or country's "resources" that measure wealth - i.e. a country rich in, say, minerals has always been and will always be more wealthy than a country with nothing - of course, over time, the value of the minerals with fluctuate in accordance with supply & demand elsewhere on the planet. All anyone can do is paper over the cracks of the existing worldwide financial systems - sooner or later, the whole thing will come crashing down.

Jonbvn

Pennywise wrote: »

At the end of the day, it is a person's or country's "resources" that measure wealth - i.e. a country rich in, say, minerals has always been and will always be more wealthy than a country with nothing

By your measure, SA is richer than Japan. Clearly, your theory does not fit the data.

Yoshua

It all adds up to much much higher silver and gold prices.

All the paper money in the world is chasing the small amount of real money silver and gold.

The more paper (or these days they dont need to print it, just type it into their bank account) or units of fiat currency they create the more energy builds up. It takes a while for this energy build up in currency to explode into a currency crisis then people flock to real money gold and silver before their paper savings become worthless.

Norfolk_Jim

Silver and Gold is not real money, they are just metals that people agree to attribute value to. Once people understand that they are just metals, good for making electrical contacts, false teeth or tablewear they no longer have such value - since you cant eat Gold or Silver.

Yoshua wrote: »

It all adds up to much much higher silver and gold prices.

All the paper money in the world is chasing the small amount of real money silver and gold.

The more paper (or these days they dont need to print it, just type it into their bank account) or units of fiat currency they create the more energy builds up. It takes a while for this energy build up in currency to explode into a currency crisis then people flock to real money gold and silver before their paper savings become worthless.

Masomnia

Pennywise wrote: »

Absolutely agree. The "global economy" is exactly that. What always gets me is how the economists and politicians keep trotting out the old "we're all getting richer" mantra due to economic growth. Fact is that "money" is only a relative measure of underlying wealth and the worldwide economy must always be "in balance" - i.e. monies owed = monies oweing and assets = liabilities. Unless we have martians bringing rolls of bank notes onto the planet, the "wealth" of the planet can't increase or decrease - it can only "shift" from one person to another or from one country to another, etc. So economic growth is impossible unless it is matched by economic contraction somewhere else. At the end of the day, it is a person's or country's "resources" that measure wealth - i.e. a country rich in, say, minerals has always been and will always be more wealthy than a country with nothing - of course, over time, the value of the minerals with fluctuate in accordance with supply & demand elsewhere on the planet. All anyone can do is paper over the cracks of the existing worldwide financial systems - sooner or later, the whole thing will come crashing down.

Isn't that mercantilism?

RDB

Norfolk_Jim wrote: »

Silver and Gold is not real money, they are just metals that people agree to attribute value to. Once people understand that they are just metals, good for making electrical contacts, false teeth or tablewear they no longer have such value - since you cant eat Gold or Silver.

You couldnt be further from the truth.

Gold and Silver have always been money through all known human history.

Silver especially so, from Bible time right up to modern day. Why do we call our currency sterling? Yes from sterling silver.

The word for silver and money is the same in hundreds of languages its written and its said the same.

Im sorry but it just annoys me when someone says gold and silver are not money. They are more money than the currency we are using today which was doomed to fail from day 1.

Charterhouse

RDB wrote: »

You couldnt be further from the truth.

Gold and Silver have always been money through all known human history.

Silver especially so, from Bible time right up to modern day. Why do we call our currency sterling? Yes from sterling silver.

The word for silver and money is the same in hundreds of languages its written and its said the same.

Im sorry but it just annoys me when someone says gold and silver are not money. They are more money than the currency we are using today which was doomed to fail from day 1.

No, they are shiny metal stuff. No reason to attribute any value to them at all. I'd far rather be in bricks, mortar and even equities than "precious" metals.

RDB

Charterhouse wrote: »

No, they are shiny metal stuff. No reason to attribute any value to them at all. I'd far rather be in bricks, mortar and even equities than "precious" metals.

You need to study history and understand what this thread is all about.

I was just challenging the statement that gold and silver are not money.

Im not talking about you rather being in equities or whatever.

Currency come from the word current always moving, its not honest money.

Gold and silver are honest money.

nearlynew

Norfolk_Jim wrote: »

Silver and Gold is not real money, they are just metals that people agree to attribute value to. Once people understand that they are just metals, good for making electrical contacts, false teeth or tablewear they no longer have such value - since you cant eat Gold or Silver.

And paper is real money I suppose?

Harry_Powell

RBD, why do you use two usernames (RDB & MR.English)?

What's the point?