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Texas moves to create gold-backed digital currency

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Re: Texas moves to create gold-backed digital currency

#61

Post by throw0101b »

bheadmaster wrote: post #24
hakfoo wrote: post #13

Earlier quoted context omitted.

I suspect there are three flavours of gold bugs: 1) Wealthy + Paranoid + Stupid. They'd rather keep their money in sovereigns under their mattress, than put it into any sort of productive economic activity. On a long term, especially in the US, you could pretty much throw darts and build a portfolio that competes with, or beats, inflation. 2) Conspirational: "fiat currency is a grand scheme to undermine our savings f…

> fiat currency is a grand scheme to undermine our savings How exactly is it not? Inflation = stealing value from people, that they have already created, time-limiting their spending power so that there's no way to actually save money in the long-term. Money printing is theft, indirect taxation without consent.

> so that there's no way to actually save money in the long-term.

Besides equities? Besides TIPS?

* https://www.investopedia.com/terms/t/tips.asp

Do you literally keep bills under your mattress or buried in your backyard? There's your problem.

Re: Texas moves to create gold-backed digital currency

#62

Post by harywilke »

dotcoma wrote: post #29

Is Texas getting ready to secede from the union, or what ?

Yes. It is the stated position of the Texas GOP that they should secede. "33. State Sovereignty: Pursuant to Article 1, Section 1, of the Texas Constitution, the federal government199 has impaired our right of local self-government. Therefore, federally mandated legislation that infringes200 upon the 10th Amendment rights of Texas should be ignored, opposed, refused, and nullified. Texas201 retains the right to secede from the United States, and the Texas Legislature should be called upon to202 pass a referendum consistent thereto."

https://texasgop.org/wp-content/uploads/2022/06/6-Permanent-... https://www.thebulwark.com/texas-republicans-deadly-serious-...

Re: Texas moves to create gold-backed digital currency

#63

Post by jelani_t »

throw0101b wrote: post #59
jelani_t wrote: post #51

Earlier quoted context omitted.

So because someone has a different worldview, you're gonna call them stupid? Cool. In the meantime, look how much purchasing power your dollar has lost since 1971. In your first point, you're also only taking into account the government-reported inflation. Go to your local grocery store and run the numbers yourself and you'll get a much higher number. After a certain percentage, inflation just becomes a tax unless yo…

> In the meantime, look how much purchasing power your dollar has lost since 1971. See also the amount of de flation that has occurred over the decades: * https://www.huffpost.com/entry/radio-shack-ad_b_4612973

Cool, now do housing and university in real wages (non-nominal).

Re: Texas moves to create gold-backed digital currency

#64

Post by rayiner »

_8j50 wrote: post #33
dotcoma wrote: post #29

Is Texas getting ready to secede from the union, or what ?

I mean the popular support isn't there but they'd in reality only need the support of the texas national guard. A traitor president also helps. And you also have a ton of people who go "who cares, let them leave" like they're breaking up with a romantic partner lol, absolutley no sense of patriotism. I mean, I don't care if it is texas, missisipi or claifornia, I am an american and all of it is mine. Whether it is a…

[flagged]

Re: Texas moves to create gold-backed digital currency

#65

Post by yardie »

dotcoma wrote: post #29

Is Texas getting ready to secede from the union, or what ?

The question was resolved n 1865 with a lot of bullets and a lot of dead soldiers. Texas joined the Union in 1845, btw.

These are chucklehead GOP politicians who only have a seat through gerrymandering. I suspect if this was to go to referendum it wouldn't get far. The most citizens of their largest cities have no interest in secession.

Re: Texas moves to create gold-backed digital currency

#66

Post by zpeti »

silverpepsi wrote: post #49
yardie wrote: post #36

In 2006/2007 I was paid for a project in e-gold[0]. Another currency backed by gold bullion. I never saw the gold, never touched it, but was assured it was there, really. The whole thing went tits up because it was a scam. Being in Texas and not Panama I guess this is slightly less scammy. But I suspect the people who want to hold gold will simply buy gold. And skip the questionably middleman. [0] https://en.wikipedi…

The problem is fraction reserves, as soon as that fraud is legalized, the entire marketplace is by definition fraudulent. If they did have reserves and fraction reserve was suddenly legalized, you get retroactively robbed in a sense. Holding gold would appeal to me but is impossible. I won't dedicate my life, hell or high water, to one country. You can't just up and carry stuff across nation borders. It is a total ni…

> One of the worst inventions in history imo.

As opposed to what? Roaming tribes of mongols, and castles where you couldnt leave if the king didn’t let you?

What did you think happened if you left your tribe in hunter gatherer tribes? You got eaten by a jaguar on the next tree, or you starved.

What romantic notion do you hold of the world before visas and passports?

Re: Texas moves to create gold-backed digital currency

#67

Post by yardie »

fredoralive wrote: post #55
weare138 wrote: post #41

Earlier quoted context omitted.

No. They couldn't if they wanted to. There is no legal or constitutional basis for a state to secede. How would that even work? It's not like they can force people to leave the US and strip them of their citizenship. Are they just going to kick out over half the people in Texas? Besides Texas' economy would collapse immediately. There would be a mass exodus of businesses. Texas would be completely cut off from the na…

If it were to happen "legally", instead of "civil war II: the farce", I suppose the obvious bit would be to pass a constitutional amendment[1] to allow Texas to secede, probably after a Texit referendum. Presumably similarly to Brexit all the nitty gritty minor details like "not destroying the economy" can be worked out in negotiation between Texas and the USA, which will no doubt leave the newly independent Texas in…

The article that allowed the UK to leave the EU was specifically crafted for the UK at the time they joined. The EU realized that mistake right away and removed it for future members.

No such agreement exists in the Constitution because having states come and go as they please would be incredibly dumb.

Re: Texas moves to create gold-backed digital currency

#68

Post by zpeti »

Geee wrote: post #45
bediger4000 wrote: post #2

What's the motive behind wanting deflationary currency? Just a few minutes' reflection should convince you that's a very bad idea for any free market, capitalist economy.

Gold is not deflationary from monetary perspective. More gold is mined constantly. Due to its high stock-to-flow ratio, the monetary inflation is very low. From the perspective of CPI (consumer price index), gold would be "deflationary", because prices would get cheaper. However, this is not a property of gold; it's the property of a capitalist economy, where companies compete to offer better products at cheaper pric…

I don’t understand the entire first principles these anti deflationists stand on.

Like every single electronics product in the last 50 years has been deflating in price (either literally or increasing in core value).

Does that stop people buying them? No!

But perhaps someone here who’s anti deflationist could explain to me why I’m wrong.

Re: Texas moves to create gold-backed digital currency

#69

Post by Eddy_Viscosity2 »

Reading through it sounds like the comptroller may not be buying physical gold to be delivered and stored at the texas facility. But buying paper representing gold stored somewhere else. I see a future filled with financial shenanigans where more and more complex layers of papers/futures/derivatives/etc become allowed to 'represent' gold, all ripe for exploitation and fraud (just like the the existing crypto, real estate, stock market, and fiat systems!). The more things change, the more they stay the same.

Re: Texas moves to create gold-backed digital currency

#70

Post by bheadmaster »

throw0101b wrote: post #61
bheadmaster wrote: post #24

Earlier quoted context omitted.

> fiat currency is a grand scheme to undermine our savings How exactly is it not? Inflation = stealing value from people, that they have already created, time-limiting their spending power so that there's no way to actually save money in the long-term. Money printing is theft, indirect taxation without consent.

> so that there's no way to actually save money in the long-term. Besides equities? Besides TIPS? * https://www.investopedia.com/terms/t/tips.asp Do you literally keep bills under your mattress or buried in your backyard? There's your problem.

> Do you literally keep bills under your mattress or buried in your backyard? There's your problem.

No, there's not my problem. The problem is that the government keeps printing money, so my bills under my mattress or buried in my backyard keep dropping in value. The fact that there are securities that are literally called "Inflation-Protected" as an antidote to that only serves as a proof of the original problem.

> But you can save money!

No, you can invest money. But investing should not be mandatory just to keep your wealth from rotting.

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