- Jared Bernstein, Joe Biden’s Chief Economist, faced difficulties explaining money’s workings in a documentary or ‘Finding The Money,’ despite his role.
- He stumbled through concepts, highlighting the confusion around government money printing and borrowing
- Bernstein, who is head of the US Council of Economic Advisers, is not formally trained in economics and appeared bewildered in the clip
Lmfao didn’t think I’d see this bullshit on Lemmy. This should be fun.
What’s gold backed by or priced by? Because it sure as hell doesn’t just have an intrinsic and constant value.
hahahaha, gold is literally intrinsic. value does go up and down, but its intristic. heres just one page where you’re able to educate yourself: https://www.federalreserve.gov/Boarddocs/speeches/2002/200201163/default.htm
Lol, did you ever take an Econ class? Gold prices follow supply and demand just like literally every other commodity including paper money.
Literally one of the reasons the convertability of gold was first ended during the depression was that gold prices were dropping in the U.S markets because of a steady flow of gold being sold to it by the European countries recovering from World War One.
Gold has also increased in value constantly the past decades as it’s gained an actual use beyond being a non-spoiling shiny thing to use as money, and started actually being used for useful things such as electronics. Aka, the demand has increased and so have prices.
But if you really need a source for such basic economics here you go.
you made so many wrong and confidently incorrect statements…
yes, gold follows supply and demand, but not like money… gold has properties that make it useful other than it’s perceived worth and it’s a rare metal. money, on the other hand, is only valued by the country that is backing it. if a country collapses, the money they print collapses as well. money doesn’t have other applications like gold does.
gold is intrinsic because it is rare, durable, and has other uses other than it looking nice.
??? the reason why money was no longer back by gold in the united states, where I am from, is because there was not enough gold in the federal reserve to back the dollar anymore; people were hoarding gold. source: https://www.history.com/news/how-did-the-gold-standard-contribute-to-the-great-depression
so you agree, gold is intrinsic.
and your source does nothing other than reinforce what I’m saying. learn to debate, kid.
And if a country collapses then their gold can flow into other markets, crashing the price of gold in those markets, just as happened during the depression. Gold is literally like any other commodity. You can argue maybe paper money isn’t respected as useful by all nations, by that’s explicitly why it was gotten rid of, all nations saw it as valuable and yet had very little control over its value, this gives you almost zero controls for monetary policy.
In a gold standard economy, inflation like during the depression has only one cure, and that’s the government buying up all the gold and banning it’s sale by anyone else, as was done during the depression by FDR.
That’s an incredibly narrow view of the whole story, people were hoarding gold because the economy was collapsing, and because of the hoarding, the money supply had effectively collapsed. The only way to deal with this was banning gold ownership and devaluing the U.S dollar in relation to gold to gain money flow back. This hastened the flow of gold to the U.S from the global community, as now the U.S government was an easy place to sell your gold to during the depression. This massive stream of gold internationally into the U.S would’ve effectively collapsed the price of Gold in the U.S had FDR not banned its use by citizens and limited it’s price to $35 per troy ounce.
I agree gold has the intrinsic ability to be a shiny thing that doesn’t degrade very much over time and has some electronic uses. Other than that, its value is completely subjective and able to face the same market pressures as money, or oxen, or sheep.
Except because it’s finite, during times of crisis, you have very, very, very little freedom to react compared to a Fiat currency, which is why literally every country on earth except for Zimbabwe uses Fiat.
The federal reserve can shred and create money as it needs, the equivalent for gold is much heavier such as bans and devaluation.
Did you even read my source??? It says the value has changed in time as it’s been perceived differently and gained different uses, and is also subject to the run of the mill market pressures. Nothing about that sounds intrinsic and constant like I originally stated, and like gold standarders claim Gold to be.
Nice ad hom dipshit, maybe take an economics class and stop hawking the gold propaganda. The grandpa’s who’ve put their entire retirement in their gold pyramid schemes keep telling you.