Added: Dec 4, 2008
From: AirelonTrading
Duration: 9:55
My Daily Blog is at: http://investorandtrader.blogspot.com/My channel at BlogTV is: http://www.blogtv.com/People/AirelonYou cannot tie the infinite to the finite, and not expect problems ...Airelon's thoughts regarding the Gold Standard, Gold vs. Dollar, and Fiat Currency ...NOTE: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 12 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research and risk tolerance. Included Music is by Paul Young. A personal friend and is not a part of any music license, recording label, etc
Channel: Education
Tags: airelon dividendinvesting fiatcurrency goldstandard goldvsdollar howto investing peterschiff ronpaul stockmarket trading
Rating: 5.00 (12 ratings) Views: 254' favoriteCount='2 Comments: 20
Fantomas1 Says:
Dec 4, 2008 - Good Thoughts. I am curious on your thoughts on Zeitgeist Addendum. Have you seen this documentary? The reason I bring this up is because you said in the video "You can't tie the infinite to the finite" Wouldn't you say that eventually we have to limit the wealth and resources per individual? Isn't that where we are headed? Just by default because of human natures tendencies?
bluestradar Says:
Dec 4, 2008 - I have not had a drink in two years,and i love tequila so much, Dan you got to stop doing this to me.lol.thanks for all the great info.
Stacks97 Says:
Dec 4, 2008 - You make a valid argument for why money shouldn't be backed 100% by gold. However, I think you incidently answer the question why it should atleast be back partially by something - to encourage "SELF CONTROL".Greenspan even admits this in a related youtube vid. "Some mechanism has to be in place that restricts the amount of money that is produced, because unless you do that all of history suggests that inflation will take hold with very deleterious effects on economic activity.
f0Rrmen Says:
Dec 4, 2008 - lush & brilliant ...... need i say more~*infinity rules~*
AirelonTrading Says:
Dec 4, 2008 - Woa. I need to apologize man ... that's something I really, really had not considered.
AirelonTrading Says:
Dec 4, 2008 - There you zero in on my problem with fiat currency. I wouldn't consider myself 'pro-fiat' either. I know that what I would really enjoy seeing as an investor? If production of money was limited in terms of a number or exponential limit, tied to the actual domestic GDP. It would limit just having the presses run off a couple of trillion, that has no assets behind it; as fiat is * supposed * to have owned assets of the govt backing it, rather than metal assets.
AirelonTrading Says:
Dec 4, 2008 - Haven't seen it.What I discuss here, has more to do with GDP and macro-economic wealth.I despise all of the limits and principles of communism. However, when it comes to individual wealth? I would agree that when an individual approaches, say - a certain percentage of GDP? Their wealth is limited. I have no problem with billionares. What I do have a problem - is anyone approaching one trillion dollars worth of wealth. That's anti-self control, and money supply hoarding, unless ...
AirelonTrading Says:
Dec 4, 2008 - ... a sizeable portion of that wealth is reinvested into producing corporations, that produce real products.Take a guy like Buffett. The guy's wealth is tied back into companies that produce for the economy of which he participates. He got rich by investing and giving capital to real companies such as Kellog cereal, Hershey candy, McDonalds, Coca-Cola, General Electric. Which makes products for all society.I'd only have a problem with wealth that becomes what I'd call money supply hoarding
antongandon1986 Says:
Dec 4, 2008 - watch?v=MDej3riTOS4Get rich without even trying :D
mouljran7 Says:
Dec 4, 2008 - great video..i rated it 5 stars even though i dont agree with you on some points.. at the end i would rather accept money backed by gold [or any other finite] than money backed and made based on debt... paper money that the fed is printing like there s no tomorrow ..
AirelonTrading Says:
Dec 4, 2008 - Thanks. I mean that.Yeah, it's not that we have to all agree. Nor am I pro-fiat. And before market conditions interupted me, I was sort of going to go after 'fiat' currencies in today's video.Markets had other thoughts though ...:^)
VivaMydick Says:
Dec 4, 2008 - I agree in a way . But I believe dollar should be supported by not just gold but all of natural resources of a specific country plus GDP But unlimited printing of money destroys value
AirelonTrading Says:
Dec 4, 2008 - Precisely. Before the credit markets started dis-assembling themselves, I was going to make a video that talks about the misconceptions and problems, and advantages of Fiat currency, just as I made with this video.Fiat currency is * supposed * to be just that. A representation of assets, and GDP. Unfortunately, lack of self-control leads to unlimited printing of money to try to save inflated value.
VivaMydick Says:
Dec 4, 2008 - buying debt with more debt , nice :) we have got great future ahead of us lol
DK0526 Says:
Dec 4, 2008 - paper money or fiat is backed by something...it is backed by all the stuff we have and all the services we render...it is reciepts for all our labor. So if we don't have enough reciepts to represent the labor done then labor slows because we don't work for free we work for reciepts so we can trade them for stored labor or stuff or services...too many reciepts in proportion to the stored labor and we find out through inflation that we need a lot more reciepts to cash in for some real stuff!
DK0526 Says:
Dec 4, 2008 - No need to tie the paper to shiny rocks when we can tie the reciepts to all our stuff and services? The key is as you say restraint in not printing too many receipts so as to redeem or cash in on labor that hasn't been rendered. The current crisis is what we get when people use promisary reciepts instead of real reciepts backed by real labor to purchase real stuff like subprime houses. But the promises were broken (as in foreclosures)and the real (backed by labor) reciepts did not follow.
DK0526 Says:
Dec 4, 2008 - and now those who handed out the promisary reciepts (ie asshole politicians, and bankers)want the rest of us to pony up with some real reciepts (tax bail out)to make things right on behalf of the losers and speculators who never were in a position to honor their promises. In reality we didn't lose are asses in the stock market. since are previous gains were based on the illusion of credit promises the market is abruptly adjusting to reality and a touch of fear or lack of confidance in reciepts.
DK0526 Says:
Dec 4, 2008 - so fixing the market with our real reciepts serves to punish those who played the game right while rewarding or bailing out those who cheated...thus making the situation worse by not letting the market correct..and further destroying confidence in the market. The politicians are trying to patch things up by shifting blame and spreading misery or reciept redistribution to those who rendered little or no labor. There is no restriant at this point! and calls for less of it to make things better???
AirelonTrading Says:
Dec 4, 2008 - Exactly mate. Exactly. The problem is the temptation that the 'intangible theoretical' puts on people. The cheaters can always be depended upon to cheat. No matter what the standard, their ilk has time and again proven that they will cheat, and find clever ways to cheat, instead of clever ways to work.
SeaSalt78 Says:
Dec 4, 2008 - great explanation. i was about the gold until you explained it, good on ya.