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Originally posted by admriker444
Oh and by the way, you are mistaken. The UK like most of the world is NOT on the gold standard anymore. This is a mistaken belief the banking cartel love to promote. Your country gave up gold during World War 2. Your money like mine is technically worthless. Your central bank, the Bank of London can print as much of it as they like...pretty nice trick for a privately owned corporation (owned by th Rothschilds). This is also why we have inflation, the hidden tax because there is NO limit to how much money they can print now.
No offense, but people like you scare me. Completely unaware that money is worthless paper. Completely unaware of the power these banking clans have over us.
Originally posted by stumason
Something quite different. The Gold standard is gone, that I know. But that doesn't stop you going down to the BoE and getting what you have been promised. The notes actually say on them "I promise to pay the bearere, on demand, the sum of X Pounds".
I guarantee that you will get your Gold in the UK and we are not "banned" from having it like you Yanks.
Originally posted by stumason
The name, "sterling", comes from that the pound was originally the value of one Troy pound of sterling silver, hence "pound sterling".
Originally posted by stumason
EDIT: Also, it is not THE reason for inflation. There are many factors and anyone with a simple understanding of economics knows that.
Today, our money is fiat (essentially costless for the government to produce) and not limited by our stock of gold. So how does the issuer of money, the central bank, know when it has produced too much money? The answer to this question is relatively straightforward: If the central bank oversupplies money, the purchasing power of money falls, or in other words, the money price of things rises. That is, inflated money will reveal itself when the prices of things in terms of money rise. So the central bank must monitor the behavior of prices as a way of detecting inflation. But over time, people have blurred the distinction between how inflation is measured with what inflation is. Indeed, today one often hears the word “inflation” used when what is meant is simply “price increase.”
Originally posted by Dae
Originally posted by stumason
EDIT: Also, it is not THE reason for inflation. There are many factors and anyone with a simple understanding of economics knows that.
Hi stumason
I think I have a simple understanding of economics and I know that there is only one reason for inflation, and that is the increase in money supply.
This ATS thread covers alot about this subject. On page 4 I give out a lesson called "Inflation 101 Mwahaha" *grins* anyway here is the gist.
Source - PDF
Today, our money is fiat (essentially costless for the government to produce) and not limited by our stock of gold. So how does the issuer of money, the central bank, know when it has produced too much money? The answer to this question is relatively straightforward: If the central bank oversupplies money, the purchasing power of money falls, or in other words, the money price of things rises. That is, inflated money will reveal itself when the prices of things in terms of money rise. So the central bank must monitor the behavior of prices as a way of detecting inflation. But over time, people have blurred the distinction between how inflation is measured with what inflation is. Indeed, today one often hears the word “inflation” used when what is meant is simply “price increase.”
To recap, inflation is caused by the increase in money stock. Everything else, such as wage increase or price increase, is just the effect of inflation.
Want to know something else? Inflation is a form of taxation...
Inflation is caused by increased money supply which is then countered with deflationary fiscal policies which can include: Increasing the level of income tax, reducing government expenditure or increasing VAT and other indirect taxation. Source
Originally posted by admriker444
The problem is taking away such power is dangerous. We've seen what the bankers are willing to do...kill presidents if necessary to protect their power.