Guys, Explain This "reboot The Dollar" Shit

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2010-06-21
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Guys, explain this "reboot the dollar" shit
 Asura.Eiryl
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By Asura.Eiryl 2017-10-21 06:37:27  
If gold suddenly becomes worth 10,000 an OZ after being worth only 1300~.... doesn't the economy completely and utterly explode?

If I have 100 oz of gold, I instantly become a millionaire?

I don't understand how Trump can just decide that gold is now worth $8000 more arbitrarily.... without causing absolute chaos.
 Asura.Kingnobody
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By Asura.Kingnobody 2017-10-21 07:37:21  
Asura.Eiryl said: »
If gold suddenly becomes worth 10,000 an OZ after being worth only 1300~.... doesn't the economy completely and utterly explode?
No, it means that gold's value becomes $10,000 USD/oz. It also means that people will have a reason to actually mine it, as it is a scarce and valuable resource used in many of the items used today, even the one you are using currently.

The economy will not explode because of one commodity becomes super rich and/or super poor. It may effect it if a lot of that commodity is tied to the economy (like oil) but it will never do more than temporarily disrupt it (everything corrects itself to adjust to the new price point of the commodity).

Take oil for example. When oil went up to $157/barrel, gas prices, among other things, were extremely expensive. Some states, like California, experienced gas prices as high as $6/gallon.

While it did disrupt the economy (global in this scale) due to almost double, and in some cases, triple the price to move products, what happened was that the prices of products increased to compensate. In a normal economy (what we experienced in 2009-2016 was anything other than normal, but that's a completely different argument), labor would have risen to match the price increase due to higher demand for wages to cover such increases. However, that did not occur due to other higher increases to the cost of labor (mainly due to Obamacare, but job-stiffing tax increases plus extreme over-regulation also played a contributing factor). Therefor, due to higher costs of labor, the oil prices had no choice but to go down due to lack of employment (added technology, such as fracking, also played a contributing factor to this too). The over-regulation/tax increases/bad laws enacted did more damage to the economy than any "price shock" as you are asking for would ever do.

Asura.Eiryl said: »
If I have 100 oz of gold, I instantly become a millionaire?
Only if you sell it then. If you hold it and it goes down, then no. Even if you sell it, you have to pay capital gains tax on top of that, and lose an automatic 23.8% of the value of gold. More like 23.6% after you take away other deductions on your tax return.

You would have to sell close to 140 ozs to actually gain a million dollars after taxes.

And that's assuming that you are not in the business to buy and/or sell gold. IF you are, then that's not capital gains, but ordinary income, and are subject to 43.4% taxes.

And all this, this is just federal taxes. Additional taxes depends on the state. California, who has the highest state individual taxes in the nation, would tack on an additional 10.3% tax on top of all that. Regardless of the classification (California doesn't recognize capital gains tax, as they consider it a cause for cancer only in the state of California).

Asura.Eiryl said: »
I don't understand how Trump can just decide that gold is now worth $8000 more arbitrarily.... without causing absolute chaos.
He doesn't. He has very little effect on prices of commodities, and he can never set a price on one.

Where did you get that sort of information?
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 Asura.Eiryl
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By Asura.Eiryl 2017-10-21 08:38:13  
Boss
Asura.Kingnobody said: »
He has very little effect on prices of commodities, and he can never set a price on one.

Where did you get that sort of information?

Boss was telling me last night Trump wants to increase the value of Gold to 10k /oz. He follows precious metals, so figured he knows what he's talking about.
 Asura.Eiryl
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By Asura.Eiryl 2017-10-21 08:56:43  
I think I see the disconnect now;

It's not, he's raising the value of gold to 10k per oz, but that he WANTS the value to go up to 10k or something along those lines.

"People" made it sound like, gold is instantly going to jump from 1300 per ounce to 10,000 per ounce by january.
 Leviathan.Comeatmebro
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By Leviathan.Comeatmebro 2017-10-21 09:38:40  
there's no way he can just make gold worth 8x as much, he's gonna go the other direction and print money until the dollar is worth 1/8 as much

stop hoarding money, start hoarding gold
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By crimsondragon 2017-10-21 12:23:05  
Leviathan.Comeatmebro said: »
there's no way he can just make gold worth 8x as much, he's gonna go the other direction and print money until the dollar is worth 1/8 as much

stop hoarding money, start hoarding gold

Highly doubt Trump is going to take the Obama route.
 Asura.Kingnobody
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By Asura.Kingnobody 2017-10-21 13:19:55  
crimsondragon said: »
Leviathan.Comeatmebro said: »
there's no way he can just make gold worth 8x as much, he's gonna go the other direction and print money until the dollar is worth 1/8 as much

stop hoarding money, start hoarding gold

Highly doubt Trump is going to take the Obama route.
Actually, you both are wrong.

Congress had the money-making ability, but they gave that to the Federal Reserve. The executive branch (aka Obama/Trump) do not have any control or say in the Federal Reserve with the sole exception of naming the chairs of Federal Reserve banks. Even then, Congress still has to approve of it.

Think of it this way: Trump can nominate a Supreme Court Justice, the Senate can approve of the person, but neither have actual control over what the Supreme Court Justice can or cannot do. This is similar, with the sole exception of Trump able to fire the board members as he sees fit. Wouldn't do him any good to fire these people, they know more about economics than Trump ever could.
 Garuda.Chanti
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By Garuda.Chanti 2017-10-21 17:38:08  
About metals....

I had a friend who worshiped at the house of gold is real money, dollars aren't.

In 1980 silver spiked and gold always follows silver. (And vice versa.) It went well past 2000. The friend didn't cash out a single Krugerrand, rode the wave all the way up and back down again.

Had my friend traded his "real money" for dollars anywhere near the peak and then rebought gold on the downslope he could have increased his gold holdings by at least 50%.

But in volatile markets, as in Polish humor, timing is of the essence.
 Asura.Eiryl
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By Asura.Eiryl 2017-10-21 20:23:29  
Well the point was they want to put the dollar back on the gold standard...

And increase the value of gold.

it didn't make sense the way people said it was going to work. It still doesn't really lol.
 Asura.Kingnobody
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By Asura.Kingnobody 2017-10-21 22:39:18  
Asura.Eiryl said: »
Well the point was they want to put the dollar back on the gold standard...
Fat chance, now that so much debt is associated with the valuation of the dollar. Let's also not forget that, by doing that, you would also upset 12 other countries in regards to their economy.

Asura.Eiryl said: »
it didn't make sense the way people said it was going to work. It still doesn't really lol.
Unless your boss is an economist, don't believe a word he says.
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By clearlyamule 2017-10-21 23:07:35  
I heard this was actually a tie about wanting to increase the price of gold...en showers because Trump believes he should have a monopoly on those
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 Asura.Kingnobody
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By Asura.Kingnobody 2017-10-21 23:09:11  
clearlyamule said: »
I heard this was actually a tie about wanting to increase the price of gold...en showers because Trump believes he should have a monopoly on those
Only in Russian hotel rooms that Obama ever stayed in.
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By crimsondragon 2017-10-21 23:28:54  
Asura.Kingnobody said: »
Actually, you both are wrong.

Not really.

Asura.Kingnobody said: »
The executive branch (aka Obama/Trump)
Asura.Kingnobody said: »
sole exception of naming the chairs of Federal Reserve banks.

Do you really think Yellen wasn't beholden to Obamas agenda?
 Asura.Eiryl
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By Asura.Eiryl 2017-10-22 03:28:15  
Asura.Kingnobody said: »
Fat chance, now that so much debt is associated with the valuation of the dollar. Let's also not forget that, by doing that, you would also upset 12 other countries in regards to their economy.

Which is why I said/asked;

Asura.Eiryl said: »
without causing absolute chaos.

In my first post.
 Asura.Kingnobody
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By Asura.Kingnobody 2017-10-22 07:04:15  
crimsondragon said: »
Asura.Kingnobody said: »
Actually, you both are wrong.

Not really.

Asura.Kingnobody said: »
The executive branch (aka Obama/Trump)
Asura.Kingnobody said: »
sole exception of naming the chairs of Federal Reserve banks.

Do you really think Yellen wasn't beholden to Obamas agenda?
If all Obama cared about was printing money, he should have left Bernanke in charge, since that was his solution to the Great Recession.

Yellen is trying to fix that mess. Why do you think it wasn't until after she became the chairperson that they started talking about interest rate hikes?
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 Asura.Kingnobody
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By Asura.Kingnobody 2017-10-22 07:07:29  
Asura.Eiryl said: »
Asura.Kingnobody said: »
Fat chance, now that so much debt is associated with the valuation of the dollar. Let's also not forget that, by doing that, you would also upset 12 other countries in regards to their economy.

Which is why I said/asked;

Asura.Eiryl said: »
without causing absolute chaos.

In my first post.
Well, you can't put the dollar back to the gold standards, and you certainly cannot control the valuation of the dollar (look at the 70s energy crisis and price controls for a perfect example of what happens when you try to manipulate a commodity).
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 Asura.Eiryl
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By Asura.Eiryl 2017-10-22 08:14:58  
That's why I asked about it. Hoping someone who cares enough to look into it could explain whats going to happen in the very near future.

It's pretty troubling to see what could happen. and this *** idiot doesn't care what happens, so it's a real possibility.
 Asura.Eiryl
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By Asura.Eiryl 2017-10-22 08:19:37  
Quote:
Gold Reset To $10,000/oz Coming "By January 1, 2018" - Rickards

A new monetary standard which will see the dollar "reboot" and gold be revalued to $10,000/oz according to best-selling author and Pentagon insider Jim Rickards.
 Leviathan.Comeatmebro
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By Leviathan.Comeatmebro 2017-10-22 09:25:37  
rickards has been talking about financial collapse for like 5 years, this is just bait to try to get gold prices to spike again
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 Asura.Saevel
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By Asura.Saevel 2017-10-22 09:31:30  
Money is worth whatever everyone thinks it's worth, this also applies to all traded commodities. Precious metals are used as a backstop for uncertain economic times because their values tended to hold steady, until speculators got involved and now precious metals are just as volatile as everything else.

Speculation is root of most extreme market volatility as speculators create false demand signals.
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 Garuda.Chanti
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By Garuda.Chanti 2017-10-22 10:33:11  
Leviathan.Comeatmebro said: »
rickards has been talking about financial collapse for like 5 years, this is just bait to try to get gold prices to spike again
Way more than 5 years. Decades is more like it.

Asura.Saevel said: »
Money is worth whatever everyone thinks it's worth, this also applies to all traded commodities. Precious metals are used as a backstop for uncertain economic times because their values tended to hold steady, until speculators got involved and now precious metals are just as volatile as everything else.

Speculation is root of most extreme market volatility as speculators create false demand signals.
NOW??!!??

Silver Thursday March 27, 1980.

I seem to remember a speculative spike in 1965 as well. And there was probably a good reason why FDR took us off the gold standard in 1933.
 Asura.Kingnobody
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By Asura.Kingnobody 2017-10-22 21:14:17  
Garuda.Chanti said: »
And there was probably a good reason why FDR took us off the gold standard in 1933.
Yeah Grandma Chanti, it's called the Great Depression.

You lived through it, you should remember what it was like back then.

/hands Chanti her medication again.

Now, you go back to the main room with Nik and tell old WWI war stories with each other.
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