Redefinitions From The Left

[Fife]

If something really, REALLY shitty happened, would you rather have your top-most marginal safe money as $200,000 USD or a couple of hundred Krugerrands?

Dude, you'd have to have those assayed. Nobody's going to know what a Krugerrand is. If you insist on gold for The Collapse, U.S. Mint.

LOL, it's just a term of art. I don't have 200 Krugerrands, but I don't have any doubt about the provenance of the ones I do have; they've been in the fold since 1981.

[StCapps]

It has everything to do with gold. There does not exist a reserve currency where the nation does not sit on a massive gold reserve.

Correlation doesn't equal causation, try harder, it's just a coincidence. Before 1971 you had a point, today you don't, the value of the USD has very little to do with the size of it's gold reserves, and hasn't for a quite a while, try to keep up.

[Smitty-48]

The main reason the USD is a huge reserve currency is all that gold. Nobody gives a shit about whatever nebulous 'security' we create. Nations keep wealth in USD because they know, in a pinch, we can liquidate the gold to pay off that massive debt.

But once we go there, the USD will go the way of the pound sterling. Make no mistake. The world will switch to the Euro and the Yuan.

Nothing to do with gold, nations keep wealth in USD because they know, in a pinch, you are more likely to pay than anyone else, because you are more wealthy and secure than any other nation, and the rule of law and those who enforce it, that keeps the whole thing humming. You can't have a free market is everyone can steal your shit with no threat of reprisal, when your markets are secure, they thrive.

It has everything to do with gold. There does not exist a reserve currency where the nation does not sit on a massive gold reserve.

By that measure, that Canadian dollar is a reserve currency, which, not actually, so you have no idea what you're blabbering on about.

Australia, 2nd largest gold producer in the world; not a reserve currency.

Russia; 3rd largest, ruble crashed.

Canada; 5th largest, no reserve currency.

Peru; 6th largest, dollarized economy.

Mexico; 8th largest, oh but that peso tho...

Magical rocks reserve, reserve currency, two separate issues, on the face of it.

[Speaker to Animals]

Not enough gold and not nearly enough money supply to be one. But there does exist a small niche of hedging with the Canadian dollar because of the gold they do have.

Again: look at a list of the top gold reserves and compare that to the list of top reserve currencies..

[Smitty-48]

Capps is right, it's a causation correlation fallacy, IMF reserve currency countries are the four largest economies on earth by GDP, but there are countries which are sitting on a massive amount of gold, equal to those four countries, which are not reserve currency countries, Russia has the same amount of gold as China, but you don't see the ruble being held by the IMF; for a reason.

[Speaker to Animals]

No, he's not right. If it were, the the pound Stirling would have remained a reserve currency after they sold off so much gold for a huge opportunity loss.

History bears out this simple fact: no gold no reserve currency.

[StCapps]

No, he's not right. If it were, the the pound Stirling would have remained a reserve currency after they sold off so much gold for a huge opportunity loss.

History bears out this simple fact: no gold no reserve currency.

Not since 1971, learn some history sometime. The USD's value is not pegged to is gold reserves anymore bro, get with the times, Bretton Woods is dead, and it isn't coming back.

[Smitty-48]

The reserve currency is a function of how much you buy not how much gold you're holding, the four biggest buyers in the world, USA, China, Japan, and European Union are the four IMF reserve currencies, the more you buy, the more people are holding your IOU's in payment for it, how much gold you have doesn't make you a reserve currency, if that was the case, the ruble would be a reserve currency, but since Russia actually has an economy the size of Spain's, it doesn't buy enough to be a reserve currency, even though they are holding just as much gold as China is.

[StCapps]

Bretton Woods is dead, but I'm not sure StA got the memo, he seems to be living in the past.

[Smitty-48]

Bretton Woods is dead, but I'm not sure StA got the memo, he seems to be living in the past.

Internetz doomsday prattler OCD, it's like tourettes syndrome.

Start a thread, any topic, and he'll come a prattling on about how it spells doomsday for America, don't like spinach? America is doomed. Chartreuse isn't your favourite colour? America is doomed. Coke over Pepsi? Doomed. Pepsi over Coke? Also doomed.