Club409
The best damn waste of time!
Conspiracy Theories
scott
Total posts: 1076
12/6/2006 4:55 PM
Drew
Total posts: 5115
12/6/2006 6:59 PM
scott
Total posts: 1076
12/13/2006 5:11 PM
scott
Total posts: 1076
12/17/2006 10:23 AM
read drew's link for further specification
mwinter
Total posts: 4328
12/17/2006 10:35 AM
"Just a piece of paper with no value to it.." except the confidence of the American people that their pieces of paper can be readily exchanged for goods and services.
scott
Total posts: 1076
12/17/2006 10:41 AM
but who/what determines the value of our 'dollars'?
mwinter
Total posts: 4328
12/17/2006 11:07 AM
I like to think that its entirely dependent on what you and I think its worth.
Think of it this way: even if the dollar were backed by gold and say you could get 1 gram of gold for every dollar what is 1 gram of gold worth? If I went to a store and said "I'd like to purchase 10 grams of gold's worth of cookies" what determines how many cookies the clerk sells me? It all comes back to the perception the consumer. What can the store get (paying its employees purchasing more goods to sell distributing profit to its shareholders ???) out of my 10 grams of gold should determine how many cookies they're willing to part with.
The point of currency should be 1 degree of abstraction from a barter system. I'm sure there are other reasons that my brother and other smarty pantses will point out but that's the heart of currency.
Have you ever seen Phenomenon?
I'll quote a site that i searched for to find the details of the barter:
"Remember the movie Phenomenon? You know the one with John Travolta. In the movie he was an auto mechanic that needed solar panels installed on his roof. He conjured up a barter to fix the car of a man that digs wells. The well digger dug a well for a guy that knew how to install solar panels and wha-la all three parties got what they wanted and it did not cost them a dime."
Each party determined that the service provided to them was worth the service they provided to the next guy. It feels like I'm rambling here because I haven't really distilled my views on economicness and the exchange of goods and services.. but I hope at least someone gets what I'm trying to say.
Think of it this way: even if the dollar were backed by gold and say you could get 1 gram of gold for every dollar what is 1 gram of gold worth? If I went to a store and said "I'd like to purchase 10 grams of gold's worth of cookies" what determines how many cookies the clerk sells me? It all comes back to the perception the consumer. What can the store get (paying its employees purchasing more goods to sell distributing profit to its shareholders ???) out of my 10 grams of gold should determine how many cookies they're willing to part with.
The point of currency should be 1 degree of abstraction from a barter system. I'm sure there are other reasons that my brother and other smarty pantses will point out but that's the heart of currency.
Have you ever seen Phenomenon?
I'll quote a site that i searched for to find the details of the barter:
"Remember the movie Phenomenon? You know the one with John Travolta. In the movie he was an auto mechanic that needed solar panels installed on his roof. He conjured up a barter to fix the car of a man that digs wells. The well digger dug a well for a guy that knew how to install solar panels and wha-la all three parties got what they wanted and it did not cost them a dime."
Each party determined that the service provided to them was worth the service they provided to the next guy. It feels like I'm rambling here because I haven't really distilled my views on economicness and the exchange of goods and services.. but I hope at least someone gets what I'm trying to say.
scott
Total posts: 1076
12/17/2006 11:41 AM
point noted. but that doesn't address the Federal Reserve Bank and the Income Tax.
Shawn
Total posts: 1367
12/17/2006 6:00 PM
The value of a dollar is determined mostly by the interest rate and the welfare of the general economy. Interest rate increase=Capital inflow=currency appreciation
It also depends on what type of exchange rate you have whether floating pegged currency board or a dirrty float.
Just for reference the US has floating and China has pegged
It also depends on what type of exchange rate you have whether floating pegged currency board or a dirrty float.
Just for reference the US has floating and China has pegged
Drew
Total posts: 5115
12/18/2006 11:54 AM
Here's a wikijourney: Superdollars
Dang commies. Pretty sure counterfiet US dollars is one of the top 3 exports of North Korea. Couldn't find the source.
Dang commies. Pretty sure counterfiet US dollars is one of the top 3 exports of North Korea. Couldn't find the source.