Quote (Shadirrasda @ Aug 1 2011 06:18am)
The value of the so called paper , is backed up by a country's silver and gold reserves right?
Well , what if the currency is based on a silver/gold reserve that is 10 or more times bigger then that the vaults actually hold?
Then hyperinflation would occur , why do you think they keep it all a secret?
As you can already see on the current market , the price of "virtual" silver (silver stocks) is lower then the price of buying an actual 10tounce silver ingot , why you may ask? well becouse they are "printing" silver as they are currently "printing" extra dollars.
And you know what happens when a company gives out more stocks?
Then ALL the other stocks get less valueable!
What do you think is currently happening to the US economy?
And to come back to your FG vs Dollar argument , i didn't even mention it in my post, OFCOURSE forumgold is nowhere near a "real" currency , so yes you are obviously right on that part.
Most people know that their money isn't backed up with an equal amount of gold/silver, and an economy doesn't need to be backed up by anything other than "good faith" to work. You haven't stumbled upon some grand scheme perpetrated by "the man" to "keep you down", you've stumbled upon something learned by most people in high school.
When a company gives out more stocks the value of the stocks diminishes. When this occurs with a currency it's called "inflation".
The US economy is in trouble for other, more complex reasons - not the least of which is the fact that our currency isn't backed by a 1v1 ratio.
This argument should die because it has nothing to do with D3. The only reason I commented on it was because that other guy was stupid enough to believe it was related to it