Linden Dollar Management

Not true. If we need to borrow money, we just print more

Well, that is not entirely true, the t-notes and the bonds cover most of that, but we do just print money. Part of the debt is money that will be owed to the holder of the bonds and t-notes that are issued.

If you get a dollar bill from the US, it is just a piece of paper, not backed by anything. I am not saying we don't have reserves. We do, but they are not tied to the dollar. We can print as much money as we want, or as little as we want, and not have to change the supply in our reserves. So the money is not backed by gold, it is back by the government, and you have to have faith in them to trust the USD.

If you just print more money, you can keep the factories churning 24/7. You can pay off US debt in a week. And you can cry in a month when you realise that has just destroyed the US currency through hyperinflation. That's what happens when you just print money like it's going out of fashion.

I really don't like how you keep reposting the same post over and over, JSecure, like it's going to be right.

The US dollar is held up in value only because people think it's valuable. That's it. Fort Knox could explode tomorrow, taking all the gold with it.

Will that suck? Yeah.

Will that make the currency markets fluctuate a little? Yeah.

Will it make the US dollar worthless? Hardly.

All major currencies in the world either tie their worth to another currency, or are simply standalone. Many south american countries tie their value to the USD, while things like the Euro are standalone.

No one's on the gold standard anymore.

It's worth as much as people are willing to pay for it.

LF

Hence the reason we don't print 24/7...

I take that back, we may print 24/7 just to keep up with demand....

Anyway, the money supply is controlled via the the Feds. They try to keep the economy in check by raising and lowering interest rates. Our money is only guaranteed by the US government, not by any real commodities.

Yeah you're right I shouldn't bother reposting, cause it's clear you don't read. What I reposted clearly stated the gold standard is where you can exchange a currency for gold. I never said that was the status in the USA. I said they have gold reserves, which the USA does. Gold reserves are gold held to give value to a currency, and the USA has these, and they give value to the US dollar. That's confirmed in a report from your US treasury dated last month.

But forget it, it's not like you'll read any of that stuff.

Th US does have large Gold reserves - But NO they are not tied to the US currency any more.

There is no gold standard. Each US dollar is only backed by the faith in the US governments ability to honor its value.

I am talking to myself. I've repeatedly stated, the gold standard is about getting gold back from dollars, not about wether inherent value of a currency is taken from gold reserves. And I posted a website to back that up. But then everyone says "Hey, US doesn't have the gold standard". I never said it did. And I think a lot of people are in fact confused as to what the gold standard is.

Nobody listens to me, why do I speak

From the US Treasury site:

http://www.ustreas.gov/education/faq/currency/legal-tender.html#q2

(emphasis mine)

"Federal Reserve notes are not redeemable in gold, silver or any other commodity, and receive no backing by anything. This has been the case since 1933. The notes have no value for themselves, but for what they will buy. In another sense, because they are legal tender, Federal Reserve notes are "backed" by all the goods and services in the economy."


Yes we have gold in Fort Knox and elsewhere.

Does it "back" our currency? Absolutely not.

This is what you said. This is not true. Maybe it is you that is not reading what you post?

Becuase you are incorrect in your assertion - you are expressing the way things USED to work.


(--from http://tx.essortment.com/goldstandards_rgvh.htm--- Although the same information is available in numerous sources ---)
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The phrase “gold standard” is defined as the use of gold as the standard value for the money of a country. If a country will redeem any of its money in gold it is said to be using the gold standard. The U.S. and many other Western countries adhered to the gold standard during the early 1900’s. Today, however, gold’s role in the worldwide monetary system is negligible. Britain abandoned the gold standard 1931; the USA abandoned it 1971. Holdings of gold are still retained because it is an internationally recognized commodity, which cannot be legislated upon or manipulated by interested countries. On August 15, 1971, the world entered the first era in its history in which no circulating paper anywhere was redeemable in gold, by anyone. At one point in time it was illegal for a U.S. citizen to own gold. President Richard Nixon of U.S. closed the “gold window.” This action broke the last tie between gold and circulating currency, resulting in our modern financial system which is called a “floating currency” system.


Since 1976 gold the U.S. government no longer sets the gold value of a dollar. The price of gold rises and falls in relation to the demand for the metal. Gold coins have not been minted as legal currency since 1933. In 1986 the U.S. Mint did begin to issue gold coins for collectors four denominations: $50, $20, $10, and $5. And there really is a Fort Knox! Since 1937 most of the nation’s gold has been stored there, underground.
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THE GOLD STANDARD IS WHERE YOU CAN TRADE IN CURRENCY FOR GOLD. THIS IS NOT THE SITUATION IN THE USA. IN THE USA AS ELSEWHERE THE TREASURY HOLDS GOLD TO GIVE THE CURRENCY VALUE (Reserves).

GOLD STANDARD => YOU CAN TRADE IN CURRENCY FOR GOLD (not the situation in the USA)

RESERVES => GOLD HELD TO GIVE MEANING TO A CURRENCY

Please, stop proving what I have said, repeatedly.

whether the usd is currently backed by gold is irrelevant to the topic.

the topic is "Linden Dollar Management."

Yep well, you know how the forums are...

Soooooooo...






... I can buy the US for 120 billion $ ?

But it is relevant to the topic. The very first thing said about the USD is wrong, thus showing that L$ does not need to be back by anything to have value. Linden Labs has offices, cash, machines, and other assorted assets. These back the L$ no more then the gold held by the US government backs the USD. The value of the L$ is back on the goods of the SL economy, just as the USD is back by the goods in the US economy.

Less than that. You can have it for nothing! Apparently all that gold held by the US govt is just Laura Bush's earring supply. Nothing to do with the currency. So it's worthless. Have it all. For free.

I wonder how Mr. T would look with 8,000 tons of solid gold on him

I pity da fool!

it was true once upon a time. can we use that past experience to help us move forward?

If we only have 120 billion in gold, where does the other 630 billion come from?

Because you refuse to admit that you were in any remote little tiny way, wrong about something. People hate that.

What you said in your very first sentence was:


What you implied in your opening message, which started with that sentence, was: "The $L should be backed just like the $US is".

The irony is that neither the $US or $L are backed at all. They both work exactly the same way: Both the $US and the $L have value solely because people agree that it has value.

Both currencies already work the same way.

Just like the US government, Linden Labs owns property. (They have a bank account, furniture, servers, etc.) I do not know whether Linden Labs owns any gold or not, but it doesn't matter. The fact that the issuer of the currency owns property, be it gold or whatever, is completely irrelevant if it isn't collateralized, or somehow tied to the currency notes.

If your opening message didn’t mean “the Linden Dollar should be backed by something just like the US dollar is”, then what point were you making?

Buster

Gold standard didn't work for the USA, why would it work for SL?

I'm gonna give this one final shot. And see, the thing is, it's true wether you like it or not. So this is for your own good.

I know you can't trade in a dollar for gold anymore. That's called the gold standard, and it's not the case in America anymore.

But when you use the word dollar, that's an Alias. It's an alias for the hundreds of billions of dollars of gold held by the treasury. It's something so matter of fact it's (as I am finding) not even taught in schools anymore.

There never was and there never will be valuable paper. All paper money is an alias for something more valuable somewhere else, or it'd collapse as people soon realise they are just passing around actual paper with no extra value. That is what the gold reserve is.

As for America's assets like factories and stuff, it's like two separate entities. If you like a factory, you pay US dollars (GOLD) for it. And if you work hard you get paid US dollars (GOLD).

If the 8,000 tons of pure gold in the US treasury was nothing to do with currency, it'd be an expensive, time consuming waste of time to keep it around, and the govt would flog it for a fast fiver. What's the point in keeping gold (if not to upkeep a currency). You can't fashion a tank out of it. You can't make a house out of it.

Believe in your paper all you want, but I have linked to documents from the united states government no less, showing this is the basic way currency works, all over the world. If paper itself could be valuable, why the dollar and why not the Jsecurian rand?

Believe it if you want. But that is the state of play in the world we live in.

This is absolutely wrong.

It isn't taught in schools because it isn't true.

Wrong wrong wrong.

Buster

I wish you were president for a week, so you could flog all that gold down the market.

Then you'd be screwed.

I don't know whose right.. and rele I don't care..

But if the gold was flogged last week, who would know?