Will there be a debt reset of everything

spencerrothchild

rymetymeuk said:

It is a real discussion to be had, the USA is not going to be able to repay that debt, fiat currencies fail in the end so imho this is a perfect time to introduce a gold backed currency and wipe debt and start again. think i'm crazy:

H.R.5404 - To define the dollar as a fixed weight of gold.

You are not crazy this is inevitable 

is just the exact same cycle repeating as normal 

only those not paying attention still can’t see it

spencerrothchild

FrugalCat said:

rymetymeuk said:

It is a real discussion to be had, the USA is not going to be able to repay that debt, fiat currencies fail in the end so imho this is a perfect time to introduce a gold backed currency and wipe debt and start again. think i'm crazy:

https://www.congress.gov/bill/115th-congress/house-bill/5404

H.R.5404 - To define the dollar as a fixed weight of gold.

It'll be a short discussion: The US doesn't own enough gold to fix the currency at the daily close price.

The only price they could fix it at is the dollars in circulation divided by gold they have in hand.

It’s obvious that the price of gold and silver will correct up to true value which is tens of thousands per ounce of silver and gold 10x that

Brock_and_Roll

Spencer, it is interesting speculation but it is not going to happen. In fact the international capital markets are already settling down - strong companies are getting pretty much the same rates as before, half-decent companies with prospects are being refinanced or issuing equity, and crappy companies are going under. 

However, you have a point about one thing. Government borrowing is in many ways a confidence trick - it seems impossible that the US, UK etc can keep on borrowing more and more every year....but as long as investors believe that these governments are good for the money, they will keep lending. 
To be fair to the USA, they have proved time and time again that they can grow their economy and afford the debt payments. With very little safety net in the US and 20m people going unemployed in the last month do not be surprised if yet again the USA bounce back quicker and harder than everyone else  - while the Meds are still lounging around on their cushy government funded welfare & furloughs.

Takedap

spencerrothchild said:

FrugalCat said:

rymetymeuk said:

It is a real discussion to be had, the USA is not going to be able to repay that debt, fiat currencies fail in the end so imho this is a perfect time to introduce a gold backed currency and wipe debt and start again. think i'm crazy:

https://www.congress.gov/bill/115th-congress/house-bill/5404

H.R.5404 - To define the dollar as a fixed weight of gold.

It'll be a short discussion: The US doesn't own enough gold to fix the currency at the daily close price.

The only price they could fix it at is the dollars in circulation divided by gold they have in hand.

It’s obvious that the price of gold and silver will correct up to true value which is tens of thousands per ounce of silver and gold 10x that

Tens of thousands of what?   Not dollars obviously.

FrugalCat

spencerrothchild said:
It’s obvious that the price of gold and silver will correct up to true value which is tens of thousands per ounce of silver and gold 10x that

spencerrothchild said:

rymetymeuk said:

It is a real discussion to be had, the USA is not going to be able to repay that debt, fiat currencies fail in the end so imho this is a perfect time to introduce a gold backed currency and wipe debt and start again. think i'm crazy:

H.R.5404 - To define the dollar as a fixed weight of gold.

You are not crazy this is inevitable 

is just the exact same cycle repeating as normal 

only those not paying attention still can’t see it

You're contradicting yourself in the space of two posts. 
If the US Dollar is fixed against a weight of gold, it is the amount the US has in reserve. That's under $70 an ounce.
For gold to rise to hundreds of thousands per ounce, you'd need USD inflation of 5,714%

Both of those are silly. 

spencerrothchild

Takedap said:

spencerrothchild said:

FrugalCat said:

rymetymeuk said:

It is a real discussion to be had, the USA is not going to be able to repay that debt, fiat currencies fail in the end so imho this is a perfect time to introduce a gold backed currency and wipe debt and start again. think i'm crazy:

https://www.congress.gov/bill/115th-congress/house-bill/5404

H.R.5404 - To define the dollar as a fixed weight of gold.

It'll be a short discussion: The US doesn't own enough gold to fix the currency at the daily close price.

The only price they could fix it at is the dollars in circulation divided by gold they have in hand.

It’s obvious that the price of gold and silver will correct up to true value which is tens of thousands per ounce of silver and gold 10x that

Tens of thousands of what?   Not dollars obviously.

Measured in temporary dollars tens of thousands but that old system of dollars is dying

there will be a new international monetary system to replace the old temporary one

spencerrothchild

FrugalCat said:

spencerrothchild said:
It’s obvious that the price of gold and silver will correct up to true value which is tens of thousands per ounce of silver and gold 10x that

spencerrothchild said:

rymetymeuk said:

It is a real discussion to be had, the USA is not going to be able to repay that debt, fiat currencies fail in the end so imho this is a perfect time to introduce a gold backed currency and wipe debt and start again. think i'm crazy:

H.R.5404 - To define the dollar as a fixed weight of gold.

You are not crazy this is inevitable 

is just the exact same cycle repeating as normal 

only those not paying attention still can’t see it

You're contradicting yourself in the space of two posts. 
If the US Dollar is fixed against a weight of gold, it is the amount the US has in reserve. That's under $70 an ounce.
For gold to rise to hundreds of thousands per ounce, you'd need USD inflation of 5,714%

Both of those are silly. 

It’s just history repeating

governments always abuse and dilute the currency supply until gold and silver do a revaluation up to meet the new expanded currency supply.

gold does a revaluation to account for the new expanded currency supply since the last revaluation 

this has always happened through history 

John_

spencerrothchild said:

Brock_and_Roll said:

Argentina is a classic example - serial defaulter and every time they default you think that people would be made to lend to them again.... but before you know it lenders are queuing up again!

But every country in the world can not pay their debts, it’s impossible to pay it all off, all they can do is borrow more

hence 99.9% of the debt in the world is being defaulted on 

The UK’s debt is in GBP, so they can simply print money and pay it all off if they want. There are very good reasons that they don’t, but it’s always an option when your debt is in your own currency.

John_

Shakin_Steve said:

I'm not ashamed to admit, this is all going waaaaay over my head 

One person on the thread is simply inventing new ways to use words which can make it confusing. Saying a debt is being defaulted on means that coupons or interest payments are not being made on time, and that is not the case on 99% of the world’s debt.

If he’s unable to even understand the very basics then he’s never going to get his head around the mire difficult concepts.

Takedap

spencerrothchild said:

Takedap said:

spencerrothchild said:

FrugalCat said:

rymetymeuk said:

It is a real discussion to be had, the USA is not going to be able to repay that debt, fiat currencies fail in the end so imho this is a perfect time to introduce a gold backed currency and wipe debt and start again. think i'm crazy:

https://www.congress.gov/bill/115th-congress/house-bill/5404

H.R.5404 - To define the dollar as a fixed weight of gold.

It'll be a short discussion: The US doesn't own enough gold to fix the currency at the daily close price.

The only price they could fix it at is the dollars in circulation divided by gold they have in hand.

It’s obvious that the price of gold and silver will correct up to true value which is tens of thousands per ounce of silver and gold 10x that

Tens of thousands of what?   Not dollars obviously.

Measured in temporary dollars tens of thousands but that old system of dollars is dying

there will be a new international monetary system to replace the old temporary one

How many tins of beans to the (new) dollar?  Physical gold has no value apart from that assigned to it.  It's only worth is in what you can swap for it.   If I offer my dog the choice of a lump of gold or a sausage, it'll take the sausage every time.  And if you were starving, so would you.  So where is the value in gold?