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Without Energy, No Economy Can Run?

serfserf Member Posts: 9,100 ✭✭✭✭

After The November elections and a possible war with China and Russia then the bottleneck of energy costs will skyrocket here In The USA. The Whitehouse will rely on patriotism and the war to blunt any outcry of Their responsibility of the failing economy with a economic depression.

The U.S. Petro dollar and reserve currency will be eliminated with the dollar devaluations across the board.Especially if and when a gold back currency appears in The East.

serf

If the Federal Reserve creates money and the U.S. government assumes and monetizes debt faster than the U.S. economy grows, the future value of the currency could fall in absolute terms.

Comments

  • BobJudyBobJudy Member Posts: 5,218 ✭✭✭✭

    If we were to go to a commodity backed currency like gold what would that solve? By spending money that it doesn't have the government creates both inflation and debt. No matter what your currency is backed by, the deficit spending will continue. That would just inflate the price of gold astronomically and each unit of currency would be worth less and less, keeping us in this inflationary cycle. The biggest cause of inflation is having more money in circulation than you have goods to buy, thus driving up the price. It doesn't matter what your currency is backed by, inflation won't be controlled until the money and GNP balance. Also if you drive up the price of gold drastically, you will raise the price of products like electronics that use gold for a practical purpose and drive inflation even higher. Those that want a commodity backed currency are guilty of not thinking things through, as it won't solve anything and may make things worse. Bob

  • Ruger4meRuger4me Member, Moderator Posts: 2,111 ******

    I read this post about 5 minutes after it was posted, said to my self, "Bob will be along to dispute this soon"... of course I was not disappointed... LOL!🤣

  • BobJudyBobJudy Member Posts: 5,218 ✭✭✭✭

    😀😁😂 O.K. so I'm predictable! But Judy still thinks I'm good looking, so at least I've got that going for me. It could be because she is a little near sighted, but I refuse to believe that! Bob

  • serfserf Member Posts: 9,100 ✭✭✭✭
    edited September 9

    Bob Knows something is a foot in The bretton -wood agreement being changed .The East want's a gold standard while the West wants a New digital assets system through an electronic intervention and surveillance system with socialism for The NWO.

    The West says if you can legally buy something then their system will be the most efficient and honest transfer of goods & services that the money changers have ever set up in History for fair taxation but The East knows it's the final nail in their coffin if it becomes reality. And probably some pirates over here in the southern USA too! 😜

    serf

  • mac10mac10 Member Posts: 2,076 ✭✭✭✭

    every one will be pizzed when there cold

  • BrookwoodBrookwood Member, Moderator Posts: 11,065 ******

    Pretty sure you meant to say that Judy is a little FAR sighted Bob. Where seeing things up close are blurry and distance adds clarity. 😁


    Reason why my wife stuck around these last 48+ years!😁

  • serfserf Member Posts: 9,100 ✭✭✭✭

    The biggest reason for inflation is the massive debt incurred by Congress and Having The Federal Reserve do fancy bookkeeping in their ledgers to make it appear there is enough stability by hiding the present debt under low interest rates.

    Well that is no longer working and The Banking system is still holding short term interest rates for the average saver at 2% or lower to try to keep the lid on their ponzi scheme and install a new form of currency with Central Bank Digital Currency.

    serf

    https://www.imf.org/en/News/Articles/2022/02/09/sp020922-the-future-of-money-gearing-up-for-central-bank-digital-currency

    If CBDCs are designed prudently, they can potentially offer more resilience, more safety, greater availability, and lower costs than private forms of digital money. That is clearly the case when compared to unbacked crypto assets that are inherently volatile. And even the better managed and regulated stablecoins may not be quite a match against a stable and well‑designed central bank digital currency.

    The success of a CBDC, if and when issued, will depend on sufficient trust. And, in turn, any successful CBDC should continue to build trust in central banks.

     The history of money is entering a new chapter.

    Countries are seeking to preserve key aspects of their traditional monetary and financial systems, while experimenting with new digital forms of money.

     

  • BobJudyBobJudy Member Posts: 5,218 ✭✭✭✭

    So you agree with me about deficit spending and too much money in circulation leading to inflation. Banks make money by lending money. It can be in the form of mortgages, car loans, even instant loans ie. credit cards etc. If deposits are plentiful because of there being so much money in circulation, they will pay low interest rates. If deposits are scarce and that threatens their ability to have assets to make loans, interest rates will rise a bit to attract money.

    As far as digital assets, I am o.k. with that as long as it is only part of the monetary policy of the nation. I do believe that to succeed, digital currency must have the same type of non-commodity backing as the dollar. If it is truly commodity based, then that commodity must be relinquished on demand to the holders of the currency. What happens when that commodity is all in the hands of the currency users and not the issuers? If the issuer does not redeem their currency for their commodity, then the currency is not actually based on that commodity.

    If I tell you your $100 bill is worth $100 in my gold, but you can't have any of that gold, my telling you that is a lie. Bob

  • serfserf Member Posts: 9,100 ✭✭✭✭
    edited September 10


    The fractional banking system works on two principles Debt and interest rates for loans never savings. The debit card is an extension of Electronic money already and all the citizenry is now prepared for the next step at the push of button when the time is right.The Idiots say we will never outlaw cash,trust us as your benefactor while they rob us with inflation and debt.

    serf

  • BobJudyBobJudy Member Posts: 5,218 ✭✭✭✭

    The definition of the fractional banking system is that it works on the principal of keeping only a small portion of their depositors cash on hand and the rest of it in loans or investments earning money. If they don't earn money, they can't pay their depositors interest, stockholders dividends or their employees salaries. It has been that way for a long time. Remember the run on the Bailey savings and loan in the movie It's a Wonderful Life? Georges explanation to the depositors was, your money isn't here, it is in your neighbors mortgages. That was a fictional portrayal of course but his explanation was correct for banking even today. Yes, things have gotten more complicated but the underlying principal is the same. To earn that money you either need deposits or access to cheap gov't or central banking loans. When the fed raises interest rates to discourage that lending, banks try to attract more deposits by raising interest rates. They haven't needed your money recently because of the cheap gov/fed rates but that is slowly changing. By raising the rates, the fed discourages borrowing by the banks and that restricts the amount of money out there. By banks being forced to raise depositors interest rates to attract more money it causes people to save and that takes money out of the general circulation. Right now there is no incentive to leave the money in the bank because it isn't earning anything.

    That being said, there has to be a balance. To much savings and not enough spending puts people out of work. To much spending causes shortages and that leads to the inflation we have now. It is a balancing act that no country has perfected and probably never will. Bob

  • serfserf Member Posts: 9,100 ✭✭✭✭
    edited September 10

    Yeah Bob it's work for over a hundred years but the public debt is way too high now to service it anymore and keep the people fooled enough and invested in their fiat money scheme. Congress is nothing but a avenue of influence peddling with smoke and mirrors that makes we the people think we have a choice in deciding our faith. we don't.

    If you think they will pay off all the debt accumulated without a Great reset and an new deal with a cashless jubilee then you been drinking the koolaide too long. They gladly do it when all the properties, commodities,Factories. corporations Farms, etc... are in there names when they switch over to the new money changer system.

    Another rabbit out of the hat but this time around your not a citizen you are their subject completely under their control in all things that you buy sell or trade with in NWO.

    serf

    We'll be fighting in the streets With our children at our feet And the morals that they worship will be gone And the men who spurred us on Sit in judgement of all wrong They decide and the shotgun sings the song

    Meet the new boss, same as the old boss' echos true today. Whether it's Clinton, Bush or Obama, what's the difference.

  • BrookwoodBrookwood Member, Moderator Posts: 11,065 ******

    About all I can add to all of this is that my brick and mortar local bank is still just paying me .01% interest on my savings account. Been banking with them for over 30 years. I've looked around some but haven't found anyplace that pays enough to make a move. Not out of any kind of loyalty to my bank, as I know I'm just an account # to them, but changing means the hassles of reestablishing important incoming transfers and automatic outgoing payments, etc.

  • MobuckMobuck Member Posts: 12,874 ✭✭✭✭

    If there is a collapse of energy/money/transportation, there will be an absolute catastrophe in the short term. Even the old order Amish have become dependent on modern amenities although much less than everyone else. The transition to barter, no electricity, lack of fossil fuels will be long and difficult resulting in a huge loss of life due to starvation and exposure to weather extremes.

    If this occurs in the USA, we'll be challenged by other countries regarding our own survival.

  • hillbillehillbille Member Posts: 12,966 ✭✭✭✭

    just heard on the radio on the way back from the VA yesterday, they were talking about the gas companies getting approvall for increase in price of gas for local homeowners. They said the average customer who had a $300 dollar gas bill last winter would see a $450 dollar gas bill this year. it was 40 some percent increase in price alone and with all the added surcharges and such it would be roughly 50% increase in the final price and the gas company would not make any additional money the increase would only cover the increase in the price of natural gas on the world market !!!! well SOMEONE is making money on this mess

  • serfserf Member Posts: 9,100 ✭✭✭✭
    edited September 24

    If you are in a big home with a huge property tax bill with a mortgage & trying to keep up the affluent lifestyle then your are in big trouble,especially in California with all those woke liberals.The America dream is dead and The Republic is in dire straits with Biden calling the right semi fascist and terrorist this month with red scarlet Marine corp soldiers in full colors on the stage.

    serf

    Tax shifting is an economic phenomenon in which the taxpayer transfers the tax burden to the purchaser or supplier by increasing the sales price or depressing the purchase price during the process of commodity exchange.4


    Additionally, shifting tax burdens have been evident through tax cuts for the wealthy that may not “have any significant effect on economic growth and unemployment,” and “lead to higher income inequality” according to a 2020 study of 18 member countries of the Organisation for Economic Co-operation and Development (OECD), including the United States.

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