Tilted Forum Project Discussion Community - View Single Post - Why Oil, Gold, Silver, Nickel, and the Canadian Dollar, Cost More

Willravel · 08-20-2006, 09:01 AM

Ace, let me put it this way:
Have you ever been to Vegas? I love Vegas, espically the casinos. I am a good roulette player and a damn good baccarat player. I always star with $5,000 when I start, and I always try to leave with $10k or more.

When you go into a casino, you can't just put cash on the table, though. You have to get it changed over to chips, small things that represent your money, but can only be used in the casino. I like to get $500 chips, because they take up less room in my pocket, and they look a bit flashy. At the end of the night, I can simply go back to the booth, and exchange my chips for money again.

The US government did the same thing once upon a time. In order to get the US econemy booming, the government set up it's own monitary system. They traded a bank note, the dollar, for a certian worth in bullion. That means that the dolalr is an IOU to anyone who has the dollar. The doller itself is worth a few cents (I've heard around 3 cents), but it's backing is where the real valuation is in the gold backing. Now, however the Federal Reserve Bank is actually a private company. They are not required to back the money at all. This means that when I pull a $10 bill out of my pocket, it's actually worth $0.03. People may think it's worth something, and that misunderstanding is the think thread that's keeping this whole thing together, but they're dead wrong. Why do you think so many people are investing in gold lately?

In a casino, I can cash in my chips at the end of the day. The worth of the chips can be backed up. My money can't be cashed in because there's nothing to back it up. It's worthless.

*If* everyone decided that it was time to change to a different system, then that would be fine. We'd all trade in our dollars for something else, and the whole country would change. The problem is that there isn't a complete conversion going on at once. It is a slow slide from a backable doller to a hyper inflated paper money system. That transition means that our econemy is in a very dangerous spot.

If you ask me, now is the time to buy real estate and invest in gold. Any little thing can set this off, and you'll want to own something of worth that isn't printed on paper.

08-20-2006, 09:01 AM	#19 (permalink)
Willravel ... a sort of licensed troubleshooter.	Ace, let me put it this way: Have you ever been to Vegas? I love Vegas, espically the casinos. I am a good roulette player and a damn good baccarat player. I always star with $5,000 when I start, and I always try to leave with $10k or more. When you go into a casino, you can't just put cash on the table, though. You have to get it changed over to chips, small things that represent your money, but can only be used in the casino. I like to get $500 chips, because they take up less room in my pocket, and they look a bit flashy. At the end of the night, I can simply go back to the booth, and exchange my chips for money again. The US government did the same thing once upon a time. In order to get the US econemy booming, the government set up it's own monitary system. They traded a bank note, the dollar, for a certian worth in bullion. That means that the dolalr is an IOU to anyone who has the dollar. The doller itself is worth a few cents (I've heard around 3 cents), but it's backing is where the real valuation is in the gold backing. Now, however the Federal Reserve Bank is actually a private company. They are not required to back the money at all. This means that when I pull a $10 bill out of my pocket, it's actually worth $0.03. People may think it's worth something, and that misunderstanding is the think thread that's keeping this whole thing together, but they're dead wrong. Why do you think so many people are investing in gold lately? In a casino, I can cash in my chips at the end of the day. The worth of the chips can be backed up. My money can't be cashed in because there's nothing to back it up. It's worthless. If everyone decided that it was time to change to a different system, then that would be fine. We'd all trade in our dollars for something else, and the whole country would change. The problem is that there isn't a complete conversion going on at once. It is a slow slide from a backable doller to a hyper inflated paper money system. That transition means that our econemy is in a very dangerous spot. If you ask me, now is the time to buy real estate and invest in gold. Any little thing can set this off, and you'll want to own something of worth that isn't printed on paper.