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MurkN

Donald Trump blasts Ron Paul at CPAC

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You said in this thread that the dollar is worthless(or will become worthless), how is gold any different? Gold, or any other material you want to base an economy on, has no value. It's a shiny rock.

That's not at all true. Gold and most other precious metals are used in a large amount of manufacturing and electronics. It's malleable, doesn't rust and is conductive. I could go on...

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That's not at all true. Gold and most other precious metals are used in a large amount of manufacturing and electronics. It's malleable, doesn't rust and is conductive. I could go on...

There are plenty of materials with much, much more intrinsic value than gold.

Gold is worth what people will pay for it, like everything else.

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Just wanted to clarify, wasn't trying to be snarky with my question, just looking for an informed opinion on the matter.

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Deac already suggested weed. It's just as good. Still doesn't give any reason to back our currency with anything.

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You said in this thread that the dollar is worthless(or will become worthless), how is gold any different? Gold, or any other material you want to base an economy on, has no value. It's a shiny rock.

For lack of better term, as far as a "currency" goes, gold and silver are amongst the purest forms you can find. They are the global default in trade and will always be worth something as long the economic environment isnt in utter peril, in which case necessities such as food and water are obviously going to be of more worth. What happened when the currency crashed in Zimbabwe? Their citizens began sifting the rivers in search of gold to buy goods with. The main strong-point to gold is that its value in the regards of a currency, is constant, never fluctuation up or down. The dramatic increase of its fiat value goes to show how weak our paper currency has become.

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For lack of better term, as far as a "currency" goes, gold and silver are amongst the purest forms you can find. They are the global default in trade and will always be worth something as long the economic environment isnt in utter peril, in which case necessities such as food and water are obviously going to be of more worth. The main strong-point to gold is that its value so to speak, always remains consistant, never fluctuation up or down. The dramatic increase of its fiat value goes to show how weak our paper currency has become.

The only reason gold and silver will 'always' be worth something is because they will 'always' be tradable for food and water(i.e. things will real value). The value of gold certainly does NOT stay consistent. What would happen if we found ridiculous amounts of gold somewhere? Or what would happen if we found a way to artificially create as much gold as we wanted?

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The only reason gold and silver will 'always' be worth something is because they will 'always' be tradable for food and water(i.e. things will real value). The value of gold certainly does NOT stay consistent. What would happen if we found ridiculous amounts of gold somewhere? Or what would happen if we found a way to artificially create as much gold as we wanted?

You raise a good point. Gold and other precious metals are by no means perfect, but they have proven to be dependable assests over the thousands of years of trade. If we were to find a ridiculous amount of gold, then yes, the value of it would essentially go down...but that isnt necessarily the point. The point is the failure to back an inherently worthless fiat currency ultimately leads to the currency's expliotation and abuse. It becomes a free for all at that point, which we have all witnessed and suffered from over the years with our current economic situations. It would take finding a lot of gold for its value to endure the 98% loss the dollar has suffered since its inception.

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You raise a good point. Gold and other precious metals are by no means perfect, but they have proven to be dependable assests over the thousands of years of trade. If we were to find a ridiculous amount of gold, then yes, the value of it would essentially go down...but that isnt necessarily the point. The point is the failure to back an inherently worthless fiat currency ultimately leads to the currency's expliotation and abuse. It becomes a free for all at that point, which we have all witnessed and suffered from over the years with our current economic situations. It would take finding a lot of gold for its value to endure the 98% loss the dollar has suffered since its inception.

I think you might just be barking up the wrong tree. I don't think the backing of currency has much effect on it's ability to be manipulated. We certainly have a large amount of economic equality today, but it's better than it has been in any point in human history. The world economy is backed by the dollar, which is backed by the government, which is backed by the people(taxes on the people). That's where the real wealth is. It's not a numerical value, it's the land, labor and innovation of the people that's backing up the currency.

It does theoretically create infinite inflation, but as long as you realize the absolute numerical value is irrelevant, then it's all good.

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