Gasoline Prices in Europe $8.00 ... so has this sparked any algae fuel production or any alternative fuel to lower the cost of diving...... F no this is what you get


Europeans are mostly poor. So they can't afford all these fancy European cars like BMW's and Range Rovers. This is what most Europeans are driving.
http://www.farrellworlds.com/Thursday_files/European%20Car.jpg


obama is full of crap like most of you and thats what you will be diving if anything at all

 

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I clipped out the rest of your ramble b/c it is all fairly meaningless. Valuing your currency more than the real things you can create with that currency is destructive. You keep missing this point.


Currency is a way to trade and exchange. We become richer by trading and exchanging things. I trade my labor for currency and then can use that currency to get other real things. Inflation gives incentive to create more real things. Gold and the inevitable deflation creates disincentives to create things.


Gold deflation blows up credit channels as prices and wages decline but your fixed debt payments remain the same. If you blow up the demand for loans, you blow up the ability to save and therefore the only mechanism by which we build the future economy.


There is a reason that the economy implodes every time there is deflation or the threat of it. You would like to see implosions as a regular thing.

no, you clipped out the rest because it proivided historical evidence that I am right in pointng out the real cause of high gas prices [ worthless paper money]

You have shown here that you cannot disprove the evidence I presented and instead erected a strawman showing everyone how ignorant you are about the subject since you chickened out trying to disprove the facts, dates, and figures I provided

 

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The gold standard period was filled with constant recessions and capped by the Great Depression. The gold standard and the resulting deflation caused by banks (and individuals) desire to hoard gold was the primary cause of teh Great Depression. Im not sure what your criteria is for 'it worked'. It was a pretty obvious error.


An increase in demand for gold (jewelry, industrial) or a decrease in supply will cause the value gold to jump. When gold jumps, the price of everything falls in terms of gold. Falling prices and falling wages always brings a recession.


People resist wage cuts (both labor and management) and you end up with a bunch of layoffs to cut labor costs. So gold has caused large unemployment.


The drop in product prices will hurt everyone with debt since the debt payment stays the same but your income falls. So gold brings a bunch of bankruptcies.


As gold keeps climbing it becomes more valuable to sit on your pile of gold than to use it to build something, especially if that new something will return falling revenues.

This is the history of the gold standard.

growth and stability, GDP growth from the 1880s to 1920s was a steady 4-5%, something we havent seen with the paper US dollar

The busts during the time period I identified were caused not by gold but by the sane culprits who created the busts and booms post-1934, central banks and governments implementing flawed monetary policies

Examples :

Panic of 1882-85 was a railroad bubble created by government much like the housing bubble that the government created last decade

Panic of 1893 was another government fueled railroad bubble coupled with the flawed Sherman Silver Act which allowed government to distort the free market value of silver

Panic of 1907 was caused by the actions of Treasury Secretary Leslie Shaw who overstepped his limitations and tried to make the Treasury Department act like a central bank, something he had no authority to do. He illegally expanded the money supply in 05 and 06. One only has to read Senator LaFollete's [ he was a big progressive ] speech during the passage of the Aldridge Bill as he disects and lays out through evidence how the Treasury casused the Panic of 1907 and for what purpose

 

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