Re: Outcome Reveals Intent
We are not on the gold standard anymore, so paper money does not represent a sum of gold. You sound smart enough to already know that. Checks represent an amount of currency on hand in a particular depositer's account, but it's my understanding the every penny of a check must be on hand at the bank that is backing the check. The check cannot be written for amounts that do not exist. Money can be LOANED for money not stored by the bank, but a check cannot be written for money that does not exist (unless that check is cut for the purpose of transering *borrowed* money.
Say certificates of gold deposit (or checks, if you want) are lent out to people to purchase a home (a car is a better example since they lose value so rapidly, but let's use an example which is permeating the news presently). The holder of the coins gives the borrower a check representing the gold required to purchase the home. The lender wants 6% interest. The homeowner buys the home, but evenutally doesnt have the means to pay the interest, or even the original principle borrowed. In the process, the home has actually become worth less than what is was originally purchased for due to a poor housing market. So, the lender has less coins, and debt (home not worth what it was purchased for) where it once had gold coins. This is called default, and it's default of the worst kind because the lender doesnt even have an asset to trade for the gold he lent.
This is what is happening ad nauseaum right now in the news. The government is having to go in a bail these banks out (even though I say let them sink). In the US, we have already lost one huge lender. Two more massive ones almost sunk this week. Others might be on the way. Your scenario is not as simple as you act.
Also, money is just paper. True. Then again, gold is just metal and cannot be actually used for anything either (except really cool gold teeth and jewelry). So, the scarcity of geniune curreny floating around is part of what makes it worth something. The perception that it has value is no less relevant with curreny than it is with gold, although this is a seperate thread, I think.
Message Thread | This response ↓|
- 556. Petro-dollar, the cause of Iran war (7/4/08) - kathaksung July 12, 2008, 8:55 pm
- 595. Push Iran to swallow a bait (3/25/09) - Kat Hak Sung May 3, 2009, 10:23 pm
- 593. Payment to North Korea (3/15/09) - Kat Hak Sung April 23, 2009, 8:10 pm
- Re: 556. Petro-dollar, the cause of Iran war (7/4/08) - Kat Hak Sung April 13, 2009, 6:02 pm
- Re: 556. Petro-dollar, the cause of Iran war (7/4/08) - Kat Hak Sung April 1, 2009, 6:34 pm
- 587. A nuclear bombing to justify Iran war (2/10/09) - Kat Hak Sung March 23, 2009, 12:48 am
- Oil 16. A super 911 to justify Iran war (1/30/09) - Kat Hak Sung March 13, 2009, 12:09 am
- Oil 15. Maintain the crisis until Iran war coming (1/15/08) - Kat Hak Sung March 2, 2009, 8:23 pm
- Re: 556. Petro-dollar, the cause of Iran war (7/4/08) - Kat Hak Sung February 19, 2009, 7:52 pm
- 13. Harassment from Feds (12/28/08) - Kat Hak Sung February 8, 2009, 10:41 pm
- 12. Financial tsunami created to stabilize the dollar (12/16/08) - Kat Hak Sung January 28, 2009, 7:04 pm
- 11. How can US dollar stands strong when oil price going down? (12/3/08) - Kat Hak Sung January 8, 2009, 9:16 pm
- 10. The real hand behind oil price manipulation (10/14/08) - Kat Hak Sung December 27, 2008, 6:49 pm
- 9. The big events relate to high oil price (9/12/08) - Kat Hak Sung December 15, 2008, 9:18 pm
- Re: 556. Petro-dollar, the cause of Iran war (7/4/08) - Kat Hak Sung December 3, 2008, 7:47 pm
- 7. The big events relate to the Iran oil Bourse (8/22/08) - Kat Hak Sung October 13, 2008, 11:59 pm
- 6. Media's mind control (oil price 6) (8/12/08) - Kat Hak Sung September 12, 2008, 7:49 pm
- High oil price (5) (7/29/08) - Kat Hak Sung September 1, 2008, 6:53 pm
- 4. Oil price goes up when Iran abandon Dollar as its oil trade currency. Time table: - Kat Hak Sung August 22, 2008, 7:53 pm
- 3. The main reason is not supply and demand. - Kat Hak Sung August 1, 2008, 11:13 pm
- Re: 556. Petro-dollar, the cause of Iran war (7/4/08) - Kat Hak Sung August 1, 2008, 11:11 pm
- False Flag an' all that - soplar July 31, 2008, 5:14 am
- Imperialism is easy. - soplar July 31, 2008, 5:11 am
- 2001 - 2003 - 2005 - 2007 - 2009 - soplar July 31, 2008, 5:06 am
- Re: 556. Petro-dollar, the cause of Iran war (7/4/08) - Clinton July 22, 2008, 4:19 am
« Back to index