>Between 1920 and 1971 US inflation rose by 104% >In 1971

Bamp

>>133315984
i wish we had my friend David Silverman in this thread to help us understand

>>133315984
The gold standard is the main cause of hyperinflation.

When you read the above I expect your fist reaction's to dismiss it as dumb. But let me explain:

If too much of a fiat currency is printed, the market will competitively devalue it, exports will rise, imports will fall and its value will stabilise.

But if too much of a gold standard currency is printed, its government will hold the currency above market value, and speculators will get rich at the government's expense. And unless the government actively devalues the currency (a big step which is far more inflationary than the small market-led devaluations of feat currencies) the government can run out of gold, at which point the currency, officially valued much higher than its market value, will hyperinflate.

>>133315984
The gold standard is an archaic thing of the past.
We need flexibility in our monetary policies.
Austrian economists are retards living in the 19th century

>>133315984

The petrodollar not the "only thing" keeping the US economy alive. It could disappear tomorrow and we just go back to making our own shit.

It is however the reason why I can afford to bulk buy t-shirts to throw them out later. I could literally afford to never do laundry and always wear brand new clothes.

This could pass and life would still be great.

>>133317204
A year ago David Stockman said Amazon was the short of the decade at $600. Now Amazon is at $1000.

>>133315984
>Reminder that fiat currency cannot be sustained without the US becoming the Weimar Republic in the future

This is literally the ideal scenario, though. A short time of hardship which will lead to ACTUAL political change. Why shouldn't we be accelerationists at this point?

>>133317947
Oh sorry. Who is David Silverman?

>>133317743
The petrodollar system is what prevents hyperinflation under the increasing amount of printing of the USD. All the surplus dollars are spent overseas buying up oil
Why do you think the military is hell bent on destroying anyone who rejects the system? Look at what happened to Ghaddafi and Saddam when they started trading oil in euros

File: goldenstar.png (191KB, 477x768px) Image search: [Google]

191KB, 477x768px

>>133315984
i dont know why arent backed in gold, seems like jewery

https://www.youtube.com/watch?v=70E9KA48Sic

>>133318055
my jewish friend who is moving to NYC to work for a bank, he is very studious and got like a 1600 on his SAT

soeone explain why the strength of a currency effects imports/exports, wouldn't the real value of the goods stay the same and people just compensate for the changing currency values?

>>133315984
(continued from >>133317665 )

Of course the gold standard is not the only cause of hyperinflation. The need to make foreign currency repayments, and the lack of an effective taxation system, are two that caused Weimar's problem.
But most hyperinflation episodes, including all recent ones, occurred to fixed value currencies not fiat ones. Though admittedly the Venezuelan Bolivar, Zimbabwe Dollar etc were linked to the US dollar rather than gold.

Inflation was high in the 1970s because the effects of OPEC's price rises on an economy overdependent on oil. Also because America (and many other countries) had been relying on the gold standard to keep inflation down, they didn't really know what to do when it was abolished. But by the 21st century the high inflation era was dead.

The petrodollar system may have been a significant source of the US dollar's value once, but as markets have become more sophisticated it has become largely irrelevant. If it ended tomorrow, there would be a one off devaluation of the US dollar by less than 5%. Then it would be business as usual. America would rely on exports to keep its dollar up - just as every other country does. It may have escaped your attention, but America is a great exporting nation.

An increase in money supply is needed to prevent the deflationary effect of technological progress from sending the economy into a depression. Normally this is done by the private sector borrowing more, but since the GFC there's been a shortage of profitable investment opportunities. As the government's also been reluctant to borrow as much as is needed, QE was needed to keep the economy going. But it's not highly inflationary - and if you're still under the illusion that it would be if not for the petrodollar, look at what's happened in Britain: same actions, same result.

Inflation is low at the moment; we need more money not less.