The Coffee House

[Frank F.]

For quite some time!
And speaking of time Dave is about to check out.

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check out what?

 

[smoke665]

. In 1971 President Nixon took the USD off the gold /silver standard, which changed the USD from a currency/promissory note which used gold/silver as a collateral into a currency/promissory note collateralized

In and following the Great Depression, people rightly lost faith in paper. There was a run on the banks to convert that paper to gold. FDR in 1933, by executive order, ordered all gold certificates, gold coin, and bullion be turned into the Federal Reserve at the exchange rate of $20.60/ ounce. Making gold ownership illegal and forcing people to use paper money. Shortly there after in the same year Congress by joint resolution set aside the requirement for public and private debt to be repaid in gold or gold certificate. The very next year the Treasury arbitrarily revalued the price of the US gold holdings by 69% to $35 which deflated the dollar value and inflated the money supply. The Us continued to redeem dollars held by Foreign Countries until 1971 when Nixon abandoned all conversion at a fixed gold rate.

The actual value of the dollar has always been a function of the GDP. The speculative value of the dollar that you refer to is it's rate of exchange with other world currencies and is a function of the economic stability of the countries swapping currency.

collateralized instead by the “Full Faith and Credit” of the government of the United States.

I had always been led to believe this as well but I can't remember any instances of where the US has actually verbalized this. As our government is a Republic, in actuality all things including the debt it creates is an extension of the people, so again it is based on the GDP (production by the people) of this country as the government produces nothing.

Footnote: private gold ownership remained illegal until 1974 when President Ford by executive order, and Congress by resolution removed the limitations on private ownership.

 

[smoke665]

And this is why I like dogs better than cats. Not only would they text you back, they would ask you if you received the text, if you're going to reply back, when you're going to reply, and send constant reminders until you do

 

[Dean_Gretsch]

it is based on the GDP (production by the people) of this country as the government produces nothing.

Oh, I dunno. They produce a lot of fuel for the late night comedians.

 

[waday]

Pull a bill out of your wallet and read what it says

I pulled a bill out of my wallet, it told me it was cold and scared, so I put it back in. While that bill is pretty lonely, it's also quite agoraphobic.

 

[davidharmier60]

Frank, in this case "check out" means go to sleep.

Dave just did a minute or two under 4 hours today. Got a pretty decent check.

Going to go to the post office to see if there is anything in the PO Box. And then head for the home 20.

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[Gary A.]

. In 1971 President Nixon took the USD off the gold /silver standard, which changed the USD from a currency/promissory note which used gold/silver as a collateral into a currency/promissory note collateralized

In and following the Great Depression, people rightly lost faith in paper. There was a run on the banks to convert that paper to gold. FDR in 1933, by executive order, ordered all gold certificates, gold coin, and bullion be turned into the Federal Reserve at the exchange rate of $20.60/ ounce. Making gold ownership illegal and forcing people to use paper money. Shortly there after in the same year Congress by joint resolution set aside the requirement for public and private debt to be repaid in gold or gold certificate. The very next year the Treasury arbitrarily revalued the price of the US gold holdings by 69% to $35 which deflated the dollar value and inflated the money supply. The Us continued to redeem dollars held by Foreign Countries until 1971 when Nixon abandoned all conversion at a fixed gold rate.

The actual value of the dollar has always been a function of the GDP. The speculative value of the dollar that you refer to is it's rate of exchange with other world currencies and is a function of the economic stability of the countries swapping currency.

collateralized instead by the “Full Faith and Credit” of the government of the United States.

I had always been led to believe this as well but I can't remember any instances of where the US has actually verbalized this. As our government is a Republic, in actuality all things including the debt it creates is an extension of the people, so again it is based on the GDP (production by the people) of this country as the government produces nothing.

Footnote: private gold ownership remained illegal until 1974 when President Ford by executive order, and Congress by resolution removed the limitations on private ownership.

While GDP may affect the value of the dollar, it does not do so directly. We are back to speculation. When the GDP increases, interests rates typically follow and also rise. That interest rate is a critical element which drives the speculative/investors into buying or dumping USD or any other currency. Currency is used for trading ... as in trading Dollars for apples or Euros for an ironing board. While trading on a local community market, as in a store or for wages is vitally important to the local community it doesn't translate well in value because you're trading apples for oranges ... dollars for merchandise ... two distinctively different entities. But ... the big but ... when you begin trading Dollars for Euros or Dollars for Yen or Pesos et al ... now you have value which easily translates between currencies ... 1.66 Euros for 1 US Dollar or 16,640 USD for one Bitcoin. That currency based value is again based upon Supply & Demand and speculation. As GDP goes up, speculators/investors/countries assumes the interest rates for dollars will also go up and speculators/investors will start purchasing more USD and countries may hoard the USD they own waiting to make a profit ... as dollars become scarce the value goes up. When the GDP goes down, the opposite happens, the value of USD goes down. GDP is but one of many elements affecting currency value.

Qualification: Gary is no expert but this what Gary has been told by experts and learned/experienced through financial transactions in foreign countries. As Gary is a simple person, Gary is repeating what he has learned in simple basic terms. As we all suspect there is a lot going on with floating currency and a global economy.

 

[SquarePeg]

Hey Hosers! Hoping we will soon move on from Economics 101 (zzzzz...zzzz...) and get back to cat memes and food talk...Or pennies and Gary’s latest rundown on camera sales in the Times. Isn’t that the Thursday ads?

Seriously though, what’s on the itinerary for the coming weekend? I am going to a customer appreciation party at my favorite watering hole on Friday night. Open bar and lots of food. It’ll be an Uber night for me, lol. Saturday will be cooking and baking for family holiday party early Sunday afternoon followed by Pats game @ 4:30. Was going to go into Boston Saturday night to see the lights but will see about the weather...

 

[Gary A.]

Article IV, Section 1 of the United States Constitution, known as the "Full Faith and Credit Clause", addresses the duties that states within the United States have to respect the "public acts, records, and judicial proceedings of every other state."

As currency is legal tender/promissory note ... Full Faith and Credit in this case refers to universal acceptance of USD by all states. It also defines that the currency is not based upon any intrinsic or tangible value.

Similar to Bitcoin ... the value of Bitcoin is purely based upon what other will pay for it without regard to collateral or credit/payment/value history of any kind other in and of itself. The value of floating currency has no real/tangible collateral or assets only the "Faith and Credit" of the issuer.

 

[Gary A.]

Buenas Dias Coffee Hosers ... In response to Peg ... Samy's Camera has three full pages of stuff today. And again, it is a tax holiday for the purchaser. A Leica Sofort instant camera for $299, a Fujifilm Instax Share SP-2 Smartphone printer for $129, tons of Canon lenses and Sony bodies. Out here, paying no taxes is significant as the tax rate in LA County is about 10%.

 

[waday]

Fujifilm Instax Share SP-2 Smartphone printer for $129

Not sure if I told you, but at your recommendation, bought this instead of the Fujifilm camera. Wife loves it. Thanks for tip!

 

[Gary A.]

Fujifilm Instax Share SP-2 Smartphone printer for $129

Not sure if I told you, but at your recommendation, bought this instead of the Fujifilm camera. Wife loves it. Thanks for tip!

Any time you can make the wife happy, it is a very good thing.

 

[Gary A.]

Jeeze-Louise ... Gary just spit out coffee all over his laptop and out his nose.

Mary Lou came into the kitchen wearing a nightshirt/pajama thing. Gary was reading the paper when he hears " ... Get your nose out of my butt ..." Gary loses his coffee, looks up and sees Maggie dancing about under Mary Lou's nightshirt.

 

[JonA_CT]

Sitting is uncomfortable today. For some reason, my very modest bill fold is hitting me in the wrong place. I would move it, but then things don’t feel right either.

Sigh.

 

[snowbear]

Sitting is uncomfortable today. For some reason, my very modest bill fold is hitting me in the wrong place. I would move it, but then things don’t feel right either.

Sigh.

BTDT - shift it slightly outboard.