1. Welcome! Please take a few seconds to create your free account to post threads, make some friends, remove a few ads while surfing and much more. ClutchFans has been bringing fans together to talk Houston Sports since 1996. Join us!

Bring me some tariffs!

Discussion in 'BBS Hangout: Debate & Discussion' started by Carl Herrera, Aug 27, 2017.

  1. sirbaihu

    sirbaihu Member

    Joined:
    Nov 2, 2006
    Messages:
    8,517
    Likes Received:
    2,851
    Fun fact: all the gold in the world cannot pay the U.S. national debt!

    Gold in world: 190,000 tons (gold.org) = 6.08 billion ounces
    Gold spot price: approx. $1300/ounce

    6.08 billion * $1300 = $7.9 trillion

    U.S. National Debt = $22 trillion

    The national debt will never be paid, i.e. we will default on our debts.
     
    #341 sirbaihu, Jun 11, 2019
    Last edited: Jun 11, 2019
  2. adoo

    adoo Member

    Joined:
    Mar 1, 2003
    Messages:
    6,672
    Likes Received:
    3,567
    that's why the world went off the gold standard, decades ago


    the US completely severed the link between the dollar and gold in 1971.​
     
  3. sirbaihu

    sirbaihu Member

    Joined:
    Nov 2, 2006
    Messages:
    8,517
    Likes Received:
    2,851
    Agreed! Coz we do not have the wealth. We do have paper and ink. . . .

    Wikipedia says the US has $310 billion worth of gold. That ain't six months' defense budget.

    "All the gold in Fort Knox" = 15 aircraft carriers
     
    #343 sirbaihu, Jun 11, 2019
    Last edited: Jun 11, 2019
  4. MojoMan

    MojoMan Member

    Joined:
    Apr 3, 2009
    Messages:
    6,749
    Likes Received:
    1,692
    The Federal Reserve has different plans. Their plan is to increase inflation at a controlled rate, which will effectively devalue our debt by making it worth less in real terms. It used to be a billion was real money for our government. Now it is a trillion. What comes next? A zillion? In a hundred years a trillion will be regarded as a much smaller amount of money than it is now.
     
    sirbaihu likes this.
  5. sirbaihu

    sirbaihu Member

    Joined:
    Nov 2, 2006
    Messages:
    8,517
    Likes Received:
    2,851
    Sounds like Venezuela.
     
  6. MojoMan

    MojoMan Member

    Joined:
    Apr 3, 2009
    Messages:
    6,749
    Likes Received:
    1,692
    It is what the fed has been doing here in the US for longer than anyone here has been alive.
     
  7. dmoneybangbang

    Joined:
    May 5, 2012
    Messages:
    14,949
    Likes Received:
    6,912
    Or maybe the gold standard wasn’t all that good.
     
  8. sirbaihu

    sirbaihu Member

    Joined:
    Nov 2, 2006
    Messages:
    8,517
    Likes Received:
    2,851
    #348 sirbaihu, Jun 11, 2019
    Last edited: Jun 11, 2019
  9. dmoneybangbang

    Joined:
    May 5, 2012
    Messages:
    14,949
    Likes Received:
    6,912
    It’s a terrible idea to tie your currency/debt to gold or a precious metal now.

    How much smaller would the US/global economy if you had to use gold to expand at such a rate. We forget how many booms and busts (more so)than before the implementation of the Fed then getting off the gold standard decades later.
     
  10. Realjad

    Realjad Contributing Member

    Joined:
    Oct 4, 2005
    Messages:
    3,418
    Likes Received:
    1,724

    Rare earth materials don't matter in the slightest through this trade war, and oh big deal- soy beans ~shrug~ we can keep that industry afloat through a trade war.

    However, a long trade war will lead to China grasping at straws
     
  11. sirbaihu

    sirbaihu Member

    Joined:
    Nov 2, 2006
    Messages:
    8,517
    Likes Received:
    2,851
    Let's simplify this.

    Imagine Uncle Sam owes $22 in debts to various people. He holds one dollar and twenty cents in one hand, and a 30-cent gold piece in the other. That's us.
     
  12. adoo

    adoo Member

    Joined:
    Mar 1, 2003
    Messages:
    6,672
    Likes Received:
    3,567
    damn, ur stupid
     
  13. NewRoxFan

    NewRoxFan Contributing Member

    Joined:
    Feb 22, 2002
    Messages:
    45,021
    Likes Received:
    41,877


    http://historymatters.gmu.edu/d/6456
     
  14. adoo

    adoo Member

    Joined:
    Mar 1, 2003
    Messages:
    6,672
    Likes Received:
    3,567
    ur not informed on this.

    it just means that the gold standard and mercantilism are eg of economic anachronism,
    they have no place in this age of globalism.
     
  15. juicystream

    juicystream Contributing Member

    Joined:
    Apr 17, 2001
    Messages:
    27,739
    Likes Received:
    3,586
    Imagine if you have a mortgage and a car loan, and student loans. So America is like Americans. Shocking.

    And lots of us would love to quit raising the deficit during a good economy, but what good would it be for Trump to not over inflate the economy?
     
  16. sirbaihu

    sirbaihu Member

    Joined:
    Nov 2, 2006
    Messages:
    8,517
    Likes Received:
    2,851
    It's quite simple. You know those green pieces of paper we call dollars, and those pieces of metal we call coins? Add them all up, and we get $1.2 trillion. We owe $22 trillion.

    If we give every dollar that exists in the world to our creditors, we will still be in default.
    Then, we can give all the gold in the entire world to our creditors, and we will still be in default.
    Then, maybe we can start selling national property to our creditors (at a steep discount, of course).
     
  17. FranchiseBlade

    FranchiseBlade Contributing Member
    Supporting Member

    Joined:
    Jan 14, 2002
    Messages:
    43,559
    Likes Received:
    11,313
    Which is why we don't pay it all off at once. Unfortunately our current President has increased what we owe.
     
  18. dmoneybangbang

    Joined:
    May 5, 2012
    Messages:
    14,949
    Likes Received:
    6,912
    That’s not how it works anymore. Debt creation equals money creation.
     
  19. sirbaihu

    sirbaihu Member

    Joined:
    Nov 2, 2006
    Messages:
    8,517
    Likes Received:
    2,851
    Is that like getting a new credit card to pay off your old credit card?

    Then one day, no one wants to give you another credit card. Then what?
     
  20. sirbaihu

    sirbaihu Member

    Joined:
    Nov 2, 2006
    Messages:
    8,517
    Likes Received:
    2,851
    Ahhhhhh, you're saying money is really just an idea, and I'm too stupid to get that?
    Can you say more on how money doesn't need to represent any material object? Can money be strictly imaginary?
     

Share This Page

  • About ClutchFans

    Since 1996, ClutchFans has been loud and proud covering the Houston Rockets, helping set an industry standard for team fan sites. The forums have been a home for Houston sports fans as well as basketball fanatics around the globe.

  • Support ClutchFans!

    If you find that ClutchFans is a valuable resource for you, please consider becoming a Supporting Member. Supporting Members can upload photos and attachments directly to their posts, customize their user title and more. Gold Supporters see zero ads!


    Upgrade Now