Alternative Solutions For the Economy?

[dgridley]

I often lament the repeal of the Gold Standard Act.. are we seeing a return to "real" currency with the institution of currencies like this:

The Free Lakota Bank is the world's first non-reserve, non-fractional bank that issues, accepts for deposit, and circulates REAL money...silver and gold. All of our deposits are liquid, meaning they can be withdrawn at any time in minted rounds.

www.freelakotabank.com

I used to buy alot of silver rounds and ingots.. might be time to look into that again as well as gold when I can afford it.

Maybe people will renew their interest in things like the Liberty Dollar?

But really, what makes precious metals the standard? Back in the 60's and 70's I was interested in a (revived) movement that touted an economy based on man hours called Technocracy.

Or maybe it's time for a large scale economy based on barter currencies, like Ithaca Hours? :sold:


http://www.youtube.com/watch?v=pWfrnfJmP5w


http://www.youtube.com/watch?v=HFaQRnIQZ6o


So, where ARE we headed, in your opinion?

 

[GILSAN]

I have no idea where we are headed, but from what I see it doesn't look good. Just over a month ago the US government came out with a $700 Billion bailout, which created a big uproar and the markets plunged. Last week Obama & Co. proposed another 500-600 billion and the next day Paulson came out with a further $800 billion for a total of about $2 TRILLION, and yet the markets went up, apparently with much less uproar.

If the initial problem was caused by too much debt, credit, bad loans etc. it confuses the daylights out of me why they come out with another $800 billion to stimilate credit again. It's like trying to cure an alcoholic by giving him more booze. And where on earth are they going to get all this money from? by printing it I suppose, and what about the consequences afterwards?

 

[CrazyTech]

I think we're (wrongly) headed for a global currency. We've gone after the Keynesian line of thought that these things can be regulated to be made easier on the folks, but that doesn't seem to be working. However, I think the powers at be in the world feel safest when they can regulate and a global currency would be a way they can control everything.

Our biggest problem is that the dollar is worth only what people think it's worth...and it literally is worth nothing more than the paper it's printed on. I back a gold standard because you have something behind the dollar. It reduces the ability of the government to print money out of thin air and forces a measure of stability.

It's the same old, same old in Washington with the Bushs, Obamas, and etc. The American people are basically told bailout or else (and even that's being renamed to 'economic recovery plan'). In a time when we're worried about depression, our great leaders are arguing over a name change for the plan. The whole problem is we are having this whole bailout shoved down our throats. The American people have no real alternatives. You can't subsidize bad business in any system.

 

[holyroller]

I have no idea where we are headed, but from what I see it doesn't look good. Just over a month ago the US government came out with a $700 Billion bailout, which created a big uproar and the markets plunged. Last week Obama & Co. proposed another 500-600 billion and the next day Paulson came out with a further $800 billion for a total of about $2 TRILLION, and yet the markets went up, apparently with much less uproar.

If the initial problem was caused by too much debt, credit, bad loans etc. it confuses the daylights out of me why they come out with another $800 billion to stimilate credit again. It's like trying to cure an alcoholic by giving him more booze. And where on earth are they going to get all this money from? by printing it I suppose, and what about the consequences afterwards?

The total cost of the bailout is close to $5trillion now, and some estimates are quoting higher. By the end of it all it wouldn't surprize me if it reached $10trillion. To put that into perspective, here are some costs of other events.

• Marshall Plan: Cost: $12.7 billion, Inflation Adjusted Cost: $115.3 billion
• Louisiana Purchase: Cost: $15 million, Inflation Adjusted Cost: $217 billion
• Race to the Moon: Cost: $36.4 billion, Inflation Adjusted Cost: $237 billion
• S&L Crisis: Cost: $153 billion, Inflation Adjusted Cost: $256 billion
• Korean War: Cost: $54 billion, Inflation Adjusted Cost: $454 billion
• The New Deal: Cost: $32 billion (Est), Inflation Adjusted Cost: $500 billion (Est)
• Invasion of Iraq: Cost: $551b, Inflation Adjusted Cost: $597 billion
• Vietnam War: Cost: $111 billion, Inflation Adjusted Cost: $698 billion
• NASA: Cost: $416.7 billion, Inflation Adjusted Cost: $851.2 billion

Add them all together and you are just under $4trillion.

I think your analogy of giving an alcoholic more booze to cure his problem is great. I guess its like hair of the dog for the economy, when the hangover of the past 10+ years hits, have another drink to keep it at bay for a bit longer.