09/08/2010 03:51:35 PM EST
Your not supposed to believe in the dollar
posted by stevebeast
in the sept 7 TYT Cenk talks about investors buying gold because they dont believe in the dollar. I wanted to point out a few things.
1. The dollar is the property of the federal reserve bank.
2. The U.S. government pays interest for the dollar with our tax money.
So if somebody has a million dollars its their money but the interest has to be paid so it becomes worth less the longer they hold it the more interest to be paid and the less its worth. To avoid the loss you spend it, the more the dollar is spent the better value we the people get on the dollar. Ideally you would put extra dollars in the investment market and ideally they would quickly circulate through the companies they invest in to the employees who
produce more so the country as a whole produces more wich makes the dollar worth more, the investment made worth more etc...
If you dont belive in the capital market then you buy gold to keep the dollar circulating.
So it would seem to me that this investor is doint the "right thing" for our capitalist system and that any "statement" we can read from the story is about our capital market, or our system of investment, but it may well be the american worker that kept him from investing in any american companies. For Cenk to say it points to a collapse of the dollar is just as outrageous and counter-productive as whats comming from the right. Why don't you tell us about the companies that aren't investing in anything, the ones holding large sums of the federal reserve's dollars and manipulating the system so that we the people pay the interest on their money, and further be able to purchase more should they decide to spend it later?
The whole thing points to the fact that we as a country don't know or agree on the basic principles of how our economy works. I mean this is basic stuff, how is our economy going to be the best in the world or even continue to exist if the participants dont understand it?
I think the president should give a speech on the basics of how our economic system works. It would give everyone a basis when talking about reforming the system or regulating or whatever the current term is. Lets have one of our "national discussions" abou
t how our economy works.