Milton Friedman on Inflation

Yeah and in 2008 we applied a cheat-code for the system. "Too big to fail" was the code.
Free market?
More like Bail Markets with taxpayers money.
Hey i thought that this system was sink or swim?
Yeah, for you who has a mortgage not for me who has a yacht.

Hey @Eli1

So then, you don't have an answer to how you'd do it except to come up with some set of laws whereby you could make people handle their money as wisely and frugally as you do. Got it! Likely zero possibility that's ever going to happen. So you don't know how you'd be able to get the economy of the United States back to a gold valued currency. Got it! Thanks.



Right! That's exactly right. The U.S. cannot get back on a gold standard system without one of those two events that I spoke of. Either gold has to be super inflated to like $500,000/oz, or we have to take $21T out of our money supply so that our current gold reserves will equal our money supply.

So as I see it, all of this crying and positioning over a gold standard economy is about equal to all those still crying that the Confederacy lost. Look, it's over! Real life has happened!!! Now we have to live within the system that exists and pining for some supposed good old days isn't ever going to take things back to how it was 100 years ago. Or 1,000 years ago. LIFE HAPPENS PEOPLE!!!!!

Things change and yes, when things change, and especially over any reasonable period of time, you can't just go back to the way things were back when you were a kid and the ice cream guy in his white Borden's truck with that cow's head sticking out of a sunflower was your best friend.

The gold standard, for all practical purposes is gone. It was a technology that seemed to suffice for a while. But then governments realized that making the value of their nation's prosperity linked to how much of some metal they could dig up out of the ground and shape into ingots didn't really work. So they untethered the money supply from their ability to hold some vast mountain of some metal that they dug up out of the ground, and let it go freely and be freely traded based on whatever value people would give it. And that's ok. Just as long as we, as a nation, have a system of trade whereby some common item that everyone can get, can be used to buy the things that we need to live our lives and feed our families and keep a roof over our heads and our bellies full. Trust me please! In Jesus' day Rome didn't have a storehouse of some valuable metal that backed the coins that were being handed about for trade.

But for any of those who think we can or should get back on it. How? It seems such a simple question. Can anyone answer it. Or is this just a bunch of grousing about the past even though you know in your heart it's never going to go back to that way. What a foolish life to live. Arguing that we should all live in the impossible.

God bless,
Ted

Things change and yes, when things change, and especially over any reasonable period of time, you can't just go back to the way things were back when you were a kid and the ice cream guy in his white Borden's truck with that cow's head sticking out of a sunflower was your best friend.

Hahaha, Ted i gotta tell you i enjoy your artwork a lot and i don't know what's happened to you to make you such a devoted and programmed leftist who complains about programmed conservatives.
This is why i said you'd be a lot of fun at parties.
Not only you didn't read my post by somehow you connected it to the civil war. hahah

Okay, lunch is on me today. Thank you!

Yeah and in 2008 we applied a cheat-code for the system. "Too big to fail" was the code.
Free market?
More like Bail Markets with taxpayers money.
Hey i thought that this system was sink or swim?
Yeah, for you who has a mortgage not for me who has a yacht.

Hahaha, Ted i gotta tell you i enjoy your artwork a lot and i don't know what's happened to you to make you such a devoted and programmed leftist who complains about programmed conservatives.
This is why i said you'd be a lot of fun at parties.
Not only you didn't read my post by somehow you connected it to the civil war. hahah

Okay, lunch is on me today. Thank you!

Hi @Eli1

I realize this wasn't directed to me, but...

None of that is any result of our not being on a gold standard currency. That's just greedy people living their greedy lives. And look, wake up my friend, too big to fail is over. And we found that very few corporations were really too big to fail, but we bailed many, many corporations and small businesses out in 2008. But do you know that the U.S. government made money on all of that. The taxpayer did not lose.

When the 'too big to fail' policy was in effect, the U.S. government bought warrants in the companies that they bailed out. After it was all over, the selling of those warrants of all the businesses that made it through, made the U.S. taxpayer money. That's honestly the reality of all that time of the government bailing out a failing economy because of the collapse of the mortgage market.

A lot of those warrants were for big companies. Goldman Sachs, GM, Fannie Mae and Freddy Mac. Those companies got millions of dollars to float them through the economic crises brought about by the failure of the mortgage markets. But when it was all over and those companies were back on their feet, the warrants that the federal government received to cover the loan amounts were sold at market and we made a small profit.

It's kind of like what Joseph did in Egypt. He finally ended up selling the starving people food for their land. In the end, no private person owned any land in all of Egypt. Fortunately Pres. Obama decided to use debt instruments instead of taking everyone's land. And it worked!! And it worked gloriously!! Following all that 'too big to fail' bailout, the economy has boomed straight through until Covid hit.

God bless,
Ted

Hi @Eli1

So, you still don't have an answer for my question? I like your attempts at deflection and they're really pretty good.

God bless and I've eaten already thanks,
Ted

HeIsHere said:
I do not think it is possible to go back to a gold standard unless there is a huge economic global disaster.

@Eli1 answered:
Yeah and in 2008 we applied a cheat-code for the system. "Too big to fail" was the code.
Free market?
More like Bail Markets with taxpayers money.
Hey i thought that this system was sink or swim?
Yeah, for you who has a mortgage not for me who has a yacht.

Really, that's your answer for how we get back on a gold standard? Ok. Yep, you're right. I'm much to dense to understand your form of monetary policy. LOL.

God bless,
Ted

Nope you got me here Ted, i got nothing for your extreme attention to detail.
You win a trip for two in Aruba and a washing machine.

No no Ted, that was a joke that even the 2008 market crash was not enough to make a change. It means that it will have to be something much worse to wake people up.
You'd know this if you were more of a prolific artist.

So, now asking my question and expecting an answer is my 'extreme attention to detail'.

I will say that you are one of the best deflectors I've run into in quite a while.

God bless,
Ted

Hi @Eli1

But didn't you say that your response to @HeIsHere was your answer to my question?

OMG Ted. That was a response to your HOW question, do you follow?
You asked HOW and HEisHERE said that it would take a global crash and then i followed with that comment.

Hi @Eli1
The quoted post above was what 'followed with that comment'. How about you just respond with the post # that has your answer to my question as to 'how' we are going to return to the gold standard.

And yeah, I can see that you are pretty easily entertained. That's likely a good thing for you. Makes you less susceptible to boredom.

God bless,
Ted

And yet it works for every single economy on the face of the planet.