NeedToUseYou
Posts: 2297
Joined: 12/24/2005 From: None of your business Status: offline
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response to original OP. The government will never file bankruptcy, partial or fully. It is completely unnecessary, under any circumstance. If things keep going like they are, we will either have a warmonger or a socialist in the oval office for the four years after Bush. So, seeing that is the 95% outcome of the upcoming election, we are going to continue the debt train. So, only one thing will happen, they will continue to inflate the currency faster than the rate of growth. If they want a new social program, or a new war, they'll simply increase the rate of inflation compared to growth. It's that simple, the U.S. dollar has dismal prospects, if the status quo have their way, The status quo being Big Government Pro War Repubs, or Even Bigger Government Dems. There is no government spending reduction coming, that's a fantasy. It's all going to be financed via devaluing the currency already in circulation. I like one of Ron Paul's ideas, and don't see any problem with it. How about having two currencies, one backed by gold or whatever commodity, and the other fiat. I really don't understand why we couldn't have a gold currency, silver currency, and the fiat dollar. The only difference really between that and now is that gains on gold or silver are taxed. Turning anything into a currency like the dollar only really involves banning taxes on gains of that currency. As in if the dollar itself increases in value relative to everything else, that is not taxed, whereas gains in gold are. Therefore the only thing that differentiates a currency from non-currency is the ability to be taxed by it's comparitive value. Currency cannot be taxed based off the mere fact that it increased in value. It would alleve the problem of corning the market, it'd also make devaluing the fiat currency less attractive. The way I see it the more currencies the better. Really, why not have more? Exchanging them back and forth would be trivial and if you had multiple currencies no one could corner the market on all of them(gold,silver,platinum,oil even), thus making it pointless. (Of course I'm not talking of exchanging foreign currencies back and forth, or gains in currency held in foreign notes traded back).
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