too strong of a currency?

[ruffryder]

An interesting situation is developing in Switzerland. With the swiss franc increasing in value by large amounts compared to near by countries and the EURO, the country is having problems.

The increased value of their currency is resulting in large decreases in exports as well as a large amount of people going out of the country to purchase goods.

Never would have thought that there would be such a thing as a currency that is too strong...

http://www.npr.org/blogs/money/2011...cast-switzerlands-too-strong-for-its-own-good

 

[sledhead_2002]

welcome to the Canadian problem

 

[POLZIN]

This is why ALL currency should be gold backed! Idiot politicians and greedy fawk bankers created this problem.

 

[ruffryder]

This is why ALL currency should be gold backed! Idiot politicians and greedy fawk bankers created this problem.

gold is just as fictitious as any other currency. It is all based on perception and implied value.

 

[DOO DAWG]

And NO rioting eh? MUST be doing some thing right! I read on another forum what that could be. Swampy.......?

 

[Pedersen]

had the same problems here in Norway, but when the banks do something about it, the same guys yell cuz that is wrong too...

 

[POLZIN]

gold is just as fictitious as any other currency. It is all based on perception and implied value.

correct ! but the percetion of value has overcome all cultural and political barriers since our knucle dragging ansestors found it lying around.

apart from that what does anyone agree upon across the globe?

 

[ruffryder]

correct ! but the percetion of value has overcome all cultural and political barriers since our knucle dragging ansestors found it lying around.

apart from that what does anyone agree upon across the globe?

but yet its value has changed over time as well... what is the point of backing a currency with something whose value fluctuates over time?

 

[sledhead_2002]

Why do we use the US dollars for trade of gold and oil?

 

[KMMAC]

420

And NO rioting eh? MUST be doing some thing right! I read on another forum what that could be. Swampy.......?

Those idiots are HEAVILY involved in the 420 scene so,,, they don't know what up!!!!

 

[swampwater]

It's clear economics was not you strong subject, you probably think the definition of inflation is an increase in prices. Swampy

gold is just as fictitious as any other currency. It is all based on perception and implied value.

 

[ruffryder]

It's clear economics was not you strong subject, you probably think the definition of inflation is an increase in prices. Swampy

Yep, that is generally how inflation is seen in the market place.

Another tangent from swampy? Who would of thought? So, you going to post a couple of "independent" news articles, that just happen to be exactly the same??

 

[diamonddave]

It's clear economics was not you strong subject, you probably think the definition of inflation is an increase in prices. Swampy

Honestly, I don't think economics is/was a strong subject for the know it all Economics Professors.

Doesn't matter if they are on the left or the right.

 

[swampwater]

You might be surprised to learn that the actual definition of inflation is an increase in the amount of money or credit availlable to purchase the same amount of goods. And guess what you could most likely buy a new car with the same amount of gold dollars that was used to buy a new model T Ford. Pretty steady I would say. Swampy

Yep, that is generally how inflation is seen in the market place.

Another tangent from swampy? Who would of thought? So, you going to post a couple of "independent" news articles, that just happen to be exactly the same??

 

[swampwater]

There are some good ones, the media and the politicians just ignore them. You might read Thomas Sowel. Swampy

Honestly, I don't think economics is/was a strong subject for the know it all Economics Professors.

Doesn't matter if they are on the left or the right.

 

[ruffryder]

You might be surprised to learn that the actual definition of inflation is an increase in the amount of money or credit availlable to purchase the same amount of goods.

yep, and represented in the market place as an increase in price.... so now that you are on the same page, what next?

And guess what you could most likely buy a new car with the same amount of gold dollars that was used to buy a new model T Ford. Pretty steady I would say. Swampy

and what does that prove? if gold was steady, shouldn't it be cheaper, as technology and economies of scale help drive down prices. An example would be a computer in the 80's vs a computer today...

I think that was a bad example...

gold price historical data in US dollars
http://www.kitco.com/scripts/hist_charts/yearly_graphs.plx

 

[swampwater]

yep, and represented in the market place as an increase in price.... so now that you are on the same page, what next?

Uh your using a result to define a cause, your cause and effect scenarios are reversed.


and what does that prove? if gold was steady, shouldn't it be cheaper, as technology and economies of scale help drive down prices. An example would be a computer in the 80's vs a computer today...

I think that was a bad example...

gold price historical data in US dollars
http://www.kitco.com/scripts/hist_charts/yearly_graphs.plx

That might be true if you could create gold but it is a limited comodity and as such there aint much more left to be found at yesterdays cost of extraction. Swampy

 

[m8magicandmystery]

i find it difficult to see gold as a limited commodity considering the very first ounce and every ounce there after ever found is still in existence somewhere

 

[dmkhnr]

You might be surprised to learn that the actual definition of inflation is an increase in the amount of money or credit availlable to purchase the same amount of goods. And guess what you could most likely buy a new car with the same amount of gold dollars that was used to buy a new model T Ford. Pretty steady I would say. Swampy

So when golds at $1900 ounce vs $1400 ounce, I'm paying more for the same goods. Inflation????

 

[winter brew]

Are gold certificates still being created? Do most people buying gold nowdays receive actual metal or are they just getting a piece of paper?
I find it hard to believe with the amount of people "buying gold" recently, that there is enough actual gold in existence to satisfy the demand. Am I off base here?