View Poll Results: Should US Currency be pinned to a standard like weights and measures?

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  • Yes. Then money would always have exactly the same value.

    5 33.33%
  • No. Because then the government would not be able to print money it does not have.

    6 40.00%
  • Don't know. This is way to complicated for me.

    1 6.67%
  • Hmmm. What is a "standard"?

    3 20.00%
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Thread: Should the US Currency be pinned to a Standard like Weights and Measures are?

  1. #11
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    Re: Should the US Currency be pinned to a Standard like Weights and Measures are?

    Quote Originally Posted by Misterveritis View Post
    Not necessarily. Let's say that I agree to work for you at a rate of one dollar per hour. Today, I could buy a one pound loaf of bread with that dollar. I am agreeing to work for you for the value of that one pound loaf of bread. Now let's say the federal government prints another dollar thus reducing the value of my current dollar to one-half of a dollar. Is that any less of a theft from me than saying the new definition of a pound is 8 ounces instead of 16 ounces? Either way the actions of the federal government have diminished the value of my exchange.
    the problem is - what do you peg it to?

    what if that item becomes naturally cheaper? more costly?

    what if we pin it to bread, but then some scientific breakthrough reduces the cost of growing wheat and turning it into bread by 2/3rds? now our dollar's worth collapses as well.

    Pinning it to something that is less volatile - like the supply of gold - is also a non starter, because there's not enough gold, and as production increases and gold does not, you get strong deflation.


    I would reduce the Feds' mandate to just holding down inflation, and subject it to more congressional oversight.

  2. #12
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    Re: Should the US Currency be pinned to a Standard like Weights and Measures are?

    I'm blanking out on everything I learned in my political economy class.

    I'd actually love to hear arguments from an expert for an against the gold standard vis a vis a floating exchange.
    Nobody who wins a war indulges in a bifurcated definition of victory. War is a political act; victory and defeat have meaning only in political terms. A country incapable of achieving its political objectives at an acceptable cost is losing the war, regardless of battlefield events.

    Bifurcating victory (e.g. winning militarily, losing politically) is a useful salve for defeated armies. The "stab in the back" narrative helped take the sting out of failure for German generals after WWI and their American counterparts after Vietnam.

    All the same, it's nonsense. To paraphrase Vince Lombardi, show me a political loser, and I'll show you a loser.
    - Colonel Paul Yingling

  3. #13
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    Re: Should the US Currency be pinned to a Standard like Weights and Measures are?

    Quote Originally Posted by StillBallin75 View Post
    Forgive me, but I don't understand this sentence.

    you borrow 100% at an interest rate of 3%.

    then I inflate the money supply by 6%

    you are going to see (roughly) a return of negative three percent: 6-3=3

  4. #14
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    Re: Should the US Currency be pinned to a Standard like Weights and Measures are?

    Quote Originally Posted by cpwill View Post
    the problem is - what do you peg it to?

    what if that item becomes naturally cheaper? more costly?

    what if we pin it to bread, but then some scientific breakthrough reduces the cost of growing wheat and turning it into bread by 2/3rds? now our dollar's worth collapses as well.

    Pinning it to something that is less volatile - like the supply of gold - is also a non starter, because there's not enough gold, and as production increases and gold does not, you get strong deflation.


    I would reduce the Feds' mandate to just holding down inflation, and subject it to more congressional oversight.
    Agree with everything except the last sentence. I do support a much greater degree of transparency when it comes to the Fed though.

    Hey we agreed on something besides AMERICAAR **** EYAH!
    Nobody who wins a war indulges in a bifurcated definition of victory. War is a political act; victory and defeat have meaning only in political terms. A country incapable of achieving its political objectives at an acceptable cost is losing the war, regardless of battlefield events.

    Bifurcating victory (e.g. winning militarily, losing politically) is a useful salve for defeated armies. The "stab in the back" narrative helped take the sting out of failure for German generals after WWI and their American counterparts after Vietnam.

    All the same, it's nonsense. To paraphrase Vince Lombardi, show me a political loser, and I'll show you a loser.
    - Colonel Paul Yingling

  5. #15
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    Re: Should the US Currency be pinned to a Standard like Weights and Measures are?

    Quote Originally Posted by Kandahar View Post
    Zero inflation is usually not desirable. A small but positive rate of inflation stimulates economic growth while still providing macroeconomic stability.

    you might try pinning it to growth in GNI

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    Re: Should the US Currency be pinned to a Standard like Weights and Measures are?

    Quote Originally Posted by cpwill View Post
    you borrow 100% at an interest rate of 3%.

    then I inflate the money supply by 6%

    you are going to see (roughly) a return of negative three percent: 6-3=3
    okay I understand this, Veritis's sentence structure just made it seem like the loaners and the borrowers were the same people which confused me.
    Nobody who wins a war indulges in a bifurcated definition of victory. War is a political act; victory and defeat have meaning only in political terms. A country incapable of achieving its political objectives at an acceptable cost is losing the war, regardless of battlefield events.

    Bifurcating victory (e.g. winning militarily, losing politically) is a useful salve for defeated armies. The "stab in the back" narrative helped take the sting out of failure for German generals after WWI and their American counterparts after Vietnam.

    All the same, it's nonsense. To paraphrase Vince Lombardi, show me a political loser, and I'll show you a loser.
    - Colonel Paul Yingling

  7. #17
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    Re: Should the US Currency be pinned to a Standard like Weights and Measures are?

    Quote Originally Posted by Misterveritis View Post
    Would you also agree then that the kilogram's value should float the currency does? If I am paid with a pound of bread and the government allows weights to float so that my dollar (which held constant) would still buy a pound of bread but that the actual weight of the pound of bread had dropped from 16 ounces to 12 ounces how would that be any different? And yet we do keep weights and other measures constant. But the value of our currency can be simply changed by printing more money (or any of the other variants that do the same thing)
    You have no idea how currency works. There is no such thing as stable value in the economic world, period. The value of anything changes depending on supply and demand. Mining gold increases supply just like printing money does. Fixed standards are impossible.

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    Re: Should the US Currency be pinned to a Standard like Weights and Measures are?

    1. Do we need money? Yes.
    2. How do we need money? As a measure of value. People intuitively perceive money like that when they "make money".
    3. Do we need a single world currency? Yes. It should something like the units of measure ( kilometers, kW, etc). Look how inconvenient is to have even two different systems of measure (miles/kilometers, gallon/litter, etc). So, we need to measure value in a way that there is easy comparison.
    4. Who should issue the money? Everyone, not the banks (that's the tricky part). Lets say I take a piece of wood, costing 2 bucks, and with my skills make a sculpture, which I sell for 200. I create value. Why should a banker monetize this money? He has no participation in this value creation whatsoever. Why should my client take this money from the banker (it all leads there) to buy my product?

  9. #19
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    Re: Should the US Currency be pinned to a Standard like Weights and Measures are?

    Quote Originally Posted by StillBallin75 View Post
    Agree with everything except the last sentence. I do support a much greater degree of transparency when it comes to the Fed though.
    the problem is, the Fed thinks that it can create employment via inflation. It's a bad holdover from Keynesian economics, but there you go. You would have thought we would have learned our lesson in the 70's, and certainly we should be learning it now, but apparently we are slow learners.

    Giving them the twin missions of employment and low inflation gives them goals will be perceived as mutually contradictory, and so Fed policy will lurch from one to the other based on whichever is more politically popular (and hence see's the greatest pressure). This reduces stability in our monetary supply and predictability in our markets - both bad things.

    The Fed is not equipped to "keep unemployment low". we should remove the mandate that charges it with destroying other pieces of our economy in an attempt to make itself so.

    Hey we agreed on something besides AMERICAAR **** EYAH!
    one of my finer hours.

  10. #20
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    Re: Should the US Currency be pinned to a Standard like Weights and Measures are?

    Quote Originally Posted by Canell View Post
    1. Do we need money? Yes.
    2. How do we need money? As a measure of value. People intuitively perceive money like that when they "make money".
    3. Do we need a single world currency? Yes. It should something like the units of measure ( kilometers, kW, etc). Look how inconvenient is to have even two different systems of measure (miles/kilometers, gallon/litter, etc). So, we need to measure value in a way that there is easy comparison.
    4. Who should issue the money? Everyone, not the banks (that's the tricky part). Lets say I take a piece of wood, costing 2 bucks, and with my skills make a sculpture, which I sell for 200. I create value. Why should a banker monetize this money? He has no participation in this value creation whatsoever. Why should my client take this money from the banker (it all leads there) to buy my product?
    three and four sound very attractive in theory, not so much in practice.
    Nobody who wins a war indulges in a bifurcated definition of victory. War is a political act; victory and defeat have meaning only in political terms. A country incapable of achieving its political objectives at an acceptable cost is losing the war, regardless of battlefield events.

    Bifurcating victory (e.g. winning militarily, losing politically) is a useful salve for defeated armies. The "stab in the back" narrative helped take the sting out of failure for German generals after WWI and their American counterparts after Vietnam.

    All the same, it's nonsense. To paraphrase Vince Lombardi, show me a political loser, and I'll show you a loser.
    - Colonel Paul Yingling

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