I Explained the Gold Standard to Janet Yellen
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- čas přidán 30. 06. 2024
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Is there evidence the gold standard is good for America? Here’s what Prof. Domitrovic told Federal Reserve Chair Janet Yellen. For more on the gold standard, watch • Prof. Lawrence H. Whit...
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We need to peg the dollar to the Jordan. Nike’s Jordan basketball shoes are highly sought after, and increase in value at a much higher % rate than gold.
If production of Jordans stop our economy collapses. Meanwhile gold is mainly kept and recycled and even if all mining of it stopped we'd still have a fixed number of tens of billions in reserves.
@@Boristien405 No. We need the gold for all the special limited edition Gold Js we'd produce just in time to ward off market crashes. It's the 360 spinning helicopter drop dunk on the economy.
02:08 Where did I put my microphone again? Ah, right there!
so even if we never go back on the gold standard, we can keep a defacto gold standard by being careful about the variation of the dollar from the price of gold.
you completly get it wrong. it is the other way arround. the price of gold is a consequence of the economic situation not the cause.
Post Hoc ergo proptor hoc. After this therefor because of this. I agree with you keeping up with the price of gold doesn't make a healthy economy but a healthy economy keeps up with gold.
Exactly! This economists many times doesn't count the factor of psychology in their theories. When people are scared they invest in gold simple as that.
I don't get this guy.
If QE wasn't used the past years the dollar would be way more valueble resulting in a huge los in exports and mass import in Chinese goods.
@@seydiyuksel4296 You dumb bro
So is the Fed manipulating the price of gold down to keep the dollar propped up?
Stable gold price is a an effect , not a cause of a period of economic growth
Ah, yes, because a shiny rock has intrinsic value. Currency can now only be given value with debt and "In God We Trust"
correlation =/= causation. NEXT.
I'm always skeptical when people try to claim that the state of an economy is the result of one simple thing.
I'm confused, how can you garuntee a fixed price on gold? I'm obviously missing something but doesn't it come down to the s/d of gold?
pretty easy .. fixed value of gold or a 1:1 exchange .. as it was a "with this note you can go to any bank and exchange it for xy gold or silver" by that there wasn't a possiblility to overprint money .. or in modern days .. over create money in a digital way .. and by the scarecity of the money itself it didn't inflate.
now economists will jump in an say .. but we need inflation else people won't spend it asap .. what is (was) the main engine of the modern economy
@@TheyCalledMeT The society functions right now without printing of one federal reserve note. It's just an accounting system of changing numbers in the computers of people's accounts. Fractional reserve banking must be banned.
What backs gold other than consumer demand? Anything that is in demand could be a "currency" . If you knew when to buy and sell tulips or cabbage patch kids you could make money like gold! If your looking for a store house for value real estate is the only thing that really has any intrinsic value!
I would say inflation has risen in everything in the 2000 housing, education and healthcare. The only thing you haven’t seen mass inflation is in goods produced in China. So wages have went no where as inflation has reason. Leading to an explosion in debt.
It is the explosion in debt - credit expansion - causing inflation, not the other way around.
so gosh, when things were stable and productive it was the same as being on the gold standard... despite having money that definitely was not. that is indeed a bizarre argument.
i don't the strong correlation, or why / reason of its correlation.. if we reason as video, i can relate to oil or politic policy as well..
So the great depression had nothing to do with government being forced to raise interest rates because of the gold standard, and the 70s had nothing to do with the hugely expensive Vietnam war
The federal reserve was there and they contracted" the money supply...
But gold standerd saids you can not print more paper dollars then the gold to cover what was printed.
Tell that to the us government
well, what did she say to that?
Is there enough gold in all the world to really back up all currency?
Yes and always will be, only the price is gonna have to correct itself..and with the ''Federal Reserve'' as federal as Federal express you can forget the TRUE VALUE of gold to ever be seen again...its not in their advantage.
I agree and disagree. Another difference is the change in the economical base from production based to information based. Anytime there is a change in the base of an economy there is a boom. From hunter gatherer to farmer. From farmer to industrialist. From industrialist to data driven. There are two factors created by the change 1) there is a boom and 2) the change is quicker with each new base. People were hunter gatherers for 1000s of years, farmers for a few thousand years and industrialists for about a hundred years.
The 1970s were bad because America was changing from a production base to an information based economy. The change caused people to lose their jobs and the markets to go out of wack. Today, we are changing from an information driven economy to a robotic age and we are going through the same thing.
Since Nixon took off the gold standard in 1972, the printing of money hasn't stopped. The biggest difference between the 1970s and today is the amount of fiat currency we've already produced and the instability it has created. In the late 1980s through the first part of the 2000s, America didn't pay any attention to gold because they were too busy getting their part of the fiat money glut. Now that data based economy has run out of gas and the change to robotics in coming, the uncertainty of the times has made gold move.
If that's true, then the economy would have made the adjustment already and America would have 64% employment ration, instead its about 60%. That's almost 13 million Americans displaced still by the "Great Recession", which is actually a depression.
Can we get him to be secretary of the Treasury or head of the reserve??
Begging the question
This oversiplifies both the historical events and the results way too much
How about the labor standard? A dollar's worth of labor equals a dollar's worth of spending power in the marketplace. That's the operative standard and why our economy is so resistant to inflation today.
Labor is useless standard for value. It's value changes massively based on geography and time -- an hour of manual labor in Vietnam is not worth the same as an hour of labor in Maine. Unlike gold, there is no free flow of labor to equalize its price. Finally, labor is now virtually worthless since machines do the 'labor'. Does ditch digging have any value when one backhoe can dig a ditch in minutes? What is the labor value of a check out clerk next to automated check out machines?
Also there was a big market crash in 1987 that he just kinda skipped over.
+CorruptedValor From which the market recovered in no time. You could say it was a speed bump.
What is this guy really trying to say?
That creating money based on the whims of politicians is bad. I mean that's sort of the end result here. He's tying it to gold, but you could tie it to GDP, the price of rice in China, Tea dumped in the Boston Harbor, or whatever else you wanted, but at long as you tied money to buying power instead of printing more cause you felt like it you'd be fine.
Agree!
Econ Share he's leaving out the critical information of what a gold standard is it is a ratio of how much gold the u.s. holds versus how many dollars are circulating
Lolol
The 1980's had two major recessions and the highest unemployment rate since the great depression. This guy's just lying.
I've only seen two videos this and one from 2011. They didn't even put in the correct eligible voting population in the video. This one he is talking about a correlation where he doesn't give all the relevant recessions and gives simplistic anecdotal evidence about a complex economy. So I am very weary of this channel after two videos 6 years apart.
It bothers the **** out of me when people talk about "gold standard vs fiat." Gold IS fiat!!!! There is very little intrinsic value in gold. 99% of its value is what we give to it because it is shiny.
Wheat . . . bullets . . . iron ingots . . . those would all be truly NOT fiat.
+CurtisBooksMusic A little basic econ. Gold has become the standard because: a) it's durable, which disqualifies wheat and iron (rust), and b) in nearly universal demand, which disqualifies bullets if you don't own a gun, along with being divisible, which allows the it to be made into coins.
TomCat05t Red Herring.
Could not agree more Curtis 👍
There isn't any intrinsic value in wheat/bullets/iron either because value is on the margin rather than intrinsic to the "nature" of the good. The value of gold comes from its use in resolving coincidences of demand, and because it is so effective at it and was so for such a long time people take it for granted and call it "intrinsic."
Wow. Just no.
Very poor explanation. Your graphs don't correlate to your message. I also believe you have the concept backwards. People do still see gold as a monetary system, just more of an insurance to the coming failure of fiat currency. As a result, good/poor performance of the US fiat currency causes in the change in price of gold... not the other way around.