Question on the gold standard

[moralist]

Bob writes:

The only way to pay back more silver than you borrowed is to increase the velocity of silver flow through economic transactions.

That is the zero sum debt based system where there can be no gambling gain except through someone else's gambling loss. This is the government economic model where the government transfers wealth from losers to winners while taking a hefty cut for the house. In the European liberal socialist system the term used is "winning money" and not "making money" because wealth is only transferred, but not created.

And that is what's totally absent in that system... wealth creation through production. This explains why I don't operate in the debt based system, but in the capital based system.

Cleverly gaming the debt system instead of honestly creating wealth through useful production is what makes a man, as Ayn Rand put it...

... "smaller than his money".

Greg

[BaalChatzaf]

Bob writes:

The only way to pay back more silver than you borrowed is to increase the velocity of silver flow through economic transactions.

That is the zero sum debt based system where there can be no gambling gain except through someone else's gambling loss. This is the government economic model where the government transfers wealth from losers to winners while taking a hefty cut for the house. In the European liberal socialist system the term used is "winning money" and not "making money" because wealth is only transferred, but not created.

And that is what's totally absent in that system... wealth creation through production. This explains why I don't operate in the debt based system, but in the capital based system.

Cleverly gaming the debt system instead of honestly creating wealth through useful production is what makes a man, as Ayn Rand put it...

... "smaller than his money".

Greg

Increasing the velocity of money correlates to an increase in the rate of producing goods and services.

Ideally money changes hands for a purchase of goods or services which must be produced.; There is no zero sum here.

Money moves faster when production goes up.

We assume that silver or gold cannot be created out of nothing and that most of the available gold has been mined.

The only things that can go up or production or the creation of "future money" (i.e. credit). Future money will spur the production of goods and services provided it can be redeemed by future production of goods and services. I don't see how a

capitalist economy can expand much without some form of sound credit or some increase in the velocity of money.

Ba'al Chatzaf

[moralist]

Bob writes:

Increasing the velocity of money correlates to an increase in the rate of producing goods and services.

Sorry, Bob. By velocity, I thought you were referring to gambling in the zero sum leveraged markets (options, futures, derivatives, and the like) where nothing is produced only transferred.

I regard debt/leveraged bets where no one can win unless someone else loses as existing in a different universe from the ethical solvent capital based system where real work creates real wealth.

Greg

[BaalChatzaf]

Bob writes:

Increasing the velocity of money correlates to an increase in the rate of producing goods and services.

Sorry, Bob. By velocity, I thought you were referring to gambling in the zero sum leveraged markets (options, futures, derivatives, and the like) where nothing is produced only transferred.

I regard debt/leveraged bets where no one can win unless someone else loses as existing in a different universe from the ethical solvent capital based system where real work creates real wealth.

Greg

Velocity is how fast money is exchanged for goods and services. To get high money velocity you have to produce goods and services faster and sell them faster.

Money is a catalyst that promotes the exchange of goods and services which (given wear and tear) means to promote the production of goods and services. There is no zero sum here.

Ba'al Chatzaf

[Peter]

I remember Indian people were immigrating with large amounts of gold into the US. That was a problem for some reason.

[moralist]

Peter writes:

I remember Indian people were immigrating with large amounts of gold into the US. That was a problem for some reason.

Sovereign independent financially solvent individuals are regarded as a threat by the government, simply because they don't need it. You cannot control what does not need you, for it is your own need of government which grants to it your sanction to make you its victim.

Greg