What is money anyways?
June 29th, 2017 at 3:30:17 PM permalink | |
DRich Member since: Oct 24, 2012 Threads: 51 Posts: 4942 |
My money went away with my ex-wife. At my age a Life In Prison sentence is not much of a detrrent. |
June 29th, 2017 at 3:35:24 PM permalink | |
petroglyph Member since: Aug 3, 2014 Threads: 25 Posts: 6227 | That is where I learned something about the new math. Half equals 85%. The last official act of any government is to loot the treasury. GW |
June 29th, 2017 at 3:42:55 PM permalink | |
Pacomartin Member since: Oct 24, 2012 Threads: 1068 Posts: 12569 | The ultimate cynical meme. Interestingly, both the "savings" theory of money and the ‘money multiplier’ theory was what I was taught in school. It's kind of an eye opener to find that it actually that has no basis in reality.
The above quote shows you how far we have come from "representative money", or money that represents a fixed asset like gold. |
June 29th, 2017 at 5:01:02 PM permalink | |
petroglyph Member since: Aug 3, 2014 Threads: 25 Posts: 6227 | When do you think it changed? The last official act of any government is to loot the treasury. GW |
June 29th, 2017 at 5:59:00 PM permalink | |
Pacomartin Member since: Oct 24, 2012 Threads: 1068 Posts: 12569 |
Actually, that is a very good question. I was taught the money multiplier theory in the 1970's. https://en.wikipedia.org/wiki/Money_multiplier Circulating Federal Reserve notes in 1938 were valued at $4.114 billion. By 1945 to finance the war effort they were valued at $22.867 billion. But even with the five fold multiplication, it was still credible to say that they were backed by the gold supply. In 1964 the silver certificates were no longer redeemable for silver. The silver certificates were produced in response to the Mint Act of 1873 which effectively put the USA on a gold certificate. I would say at this point the concept of value of "banknotes" changed. By 1969 the federal reserve notes had doubled to $44.547 billion. At this point the anti money laundering laws started to go into effect. The federal government also made the decision to destroy as many of the banknotes of denominations over $100 that they could get their hands on. The Bank Secrecy Act (otherwise known as the Currency and Foreign Transactions Reporting Act) went into effect on October 26, 1970. The Nixon shock was a series of economic measures undertaken by United States President Richard Nixon in 1971, the most significant of which was the unilateral cancellation of the direct international convertibility of the United States dollar to gold. They value of federal reserve notes spiked to $51.3 billion in two years until the end of 1971 ( still less than $250 per capita). The value of the federal reserve notes began to grow exponentially reaching $100 billion in 1979, $200 billion in 1987, $300 billion in 1992, and a trillion dollars by 2011. If it isn't immediately obvious, the rate of increase in federal reserve notes is many times the inflation rate as $44.55 billion in December 1969 has the same buying power $289 billion today. So far over $915 billion of color c-notes have produced. I don't think they should keep making c-notes without restraint as eventually the world will question their value. Sweden's banknotes peaked in value at the end of 2007, and they have been reduced by well over 50% since then. |
July 1st, 2017 at 6:34:47 PM permalink | |
petroglyph Member since: Aug 3, 2014 Threads: 25 Posts: 6227 | I had wondered if maybe your answer might have been after E.O. 6102 in 1933? http://www.history.com/this-day-in-history/fdr-takes-united-states-off-gold-standard People were no longer able to hold constitutional money, and so soon after the crash of 29. It must have horrified a good plenty of those that actually turned in their gold? The last official act of any government is to loot the treasury. GW |
July 1st, 2017 at 6:42:50 PM permalink | |
Pacomartin Member since: Oct 24, 2012 Threads: 1068 Posts: 12569 |
On April 5, 1933, Roosevelt ordered all gold coins and gold certificates in denominations of more than $100 turned in for other money. On August 15, 1971, President Richard Nixon announced that the United States would no longer convert dollars to gold at a fixed value, thus completely abandoning the gold standard. But I think the "money multiplier" theory of money creation had been abandoned before 1971, but was still valid in 1933. It is a somewhat arbitrary decision since these changes are gradual, but In 1964 the silver certificates were no longer redeemable for silver. That is the first time that the connection between commodity and money was formerly severed. |
July 18th, 2017 at 12:54:42 AM permalink | |
Evenbob Member since: Oct 24, 2012 Threads: 146 Posts: 25010 | I got a AmEx Bluebird card thru Walmart a few months ago. I haven't had a bank account in awhile because they aren't free anymore. You have to keep a certain balance and use the account a set number of times a month or they charge a fee for the account. With this AmEx card, who needs a bank account. It's a debit card, but it comes with checks. It has a routing number and account number and it's free, no fees for doing every day things like paying bills. I read millions of Americans have these accounts because they are the perfect place to hide money from your spouse, or from creditors. They aren't connected to any credit rating company and there is no way for anyone to know you have the account unless they see you using the card. Which is accepted anywhere they accept American Express. The IRS knows, but that's not an issue for most people. You put lots of money on it and support your mistress and your wife will never see it pop up on a routine credit report. Have it all done paperless and sent to a secret email account, and even a private detective would have no way to find it. All perfectly legal. If you take a risk, you may lose. If you never take a risk, you will always lose. |
July 18th, 2017 at 8:34:07 AM permalink | |
Pacomartin Member since: Oct 24, 2012 Threads: 1068 Posts: 12569 | The new £10 note was revealed today. The UK has previously introduced a new polymer £5 note and new £1 coin. The older £2 coin is being retained. The big task in a few years will be to replace the £20=US$26 banknote which is the mainstay of most cash transactions. The government of the UK may not introduce a new £50 note to discourage large scale cash transactions In the Euro zone the standard banknote is the 50 EUR = £44.42, so limiting cash to a £20 banknote in the UK would make them radically different than the rest of Europe (even the small countries). Even cash starved Sweden has the bulk of it's cash value in the denomination 500 SEK =£46.33 |
February 13th, 2018 at 11:08:29 AM permalink | |
Evenbob Member since: Oct 24, 2012 Threads: 146 Posts: 25010 | The value of money in various periods has always fascinated me. They have calculators that will tell you what a dollar was worth in different years. For instance, $100 in today's USD was worth $1500 in 1925, supposedly. But this is flawed. In 1925 you could buy a fine new house from Sears for $600. In today's money that's $9000. But you can't buy much of a house now for $9K, let alone a quality new home like Sears sold. Same with cars. If you made $30K a year in 1925, you could live like a king. You could even have a couple of live-in servants. Today that's $180K a year, which many families make as a combined income. They might have a nice home and new cars, but they'll be in debt, and having servants isn't even close to possible. My point it, there is really no way to calculate a dollars worth in a past year accurately. In 1925 you could have dinner for two in a 3 star restaurant for $5. Today that same dinner could easily cost $1K. If you take a risk, you may lose. If you never take a risk, you will always lose. |