[user____name]

> The entire US banking and financial system relies on NOT delivering or owning the underlying (fractional reserve banking, federal reserve printing money out of thin air

This is sadly a very common misunderstanding of how money is created inside the financial system, even by professional economists and financial advisers. In reality money is not valued at parity with some physical material but as a simple act of accounting [0,1,2,3,4]. Historically a currency (subset) has been pegged against rare minerals as a method of insurance against state or exchange rate instability, the flip side is that this restricts state spending and economic growth -- a growing economy needs a growing stock of currency to service loans and avoid debt driven deflation, as in e.g. the great depression [5,6,7]. This is why gold/silver standards are always episodic in world history [8]. Even in the fien-de-secle gold standard era the majority of currency in circulation had its origin in endogenous bank lending [9]. The typical stability and viability of a currency is from the fact that it can be used to procure real goods in the wider market, which in turn is because money contracts are legally enforced via social power relations, e.g. by a local government with the power make and enforce such rules. Incidentally this is why cryptocurrencies act as an investment asset and not as a currency, it lacks the enforcement component and it appreciates in value, which is never what you want for a currency [10].

[0] Bank of England, Money Creation in the Modern Economy https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/m... [1] Deutsche Bundesbank, The role of banks, non- banks and the central­ bank in the money creation process https://www.bundesbank.de/resource/blob/654284/df66c4444d065... [2] Richard A. Werner, A lost century in economics: Three theories of banking and the conclusive evidence https://www.sciencedirect.com/science/article/pii/S105752191... [3] Augusto Graziani, The Monetary Theory of Production https://www.cambridge.org/core/books/monetary-theory-of-prod... [4] Basil J. Moore, Horizontalists and Verticalists https://www.cambridge.org/sc/universitypress/subjects/econom... [5] Scientific Origin, What Was the Gold Standard, How It Worked, and Why It Ended https://scientificorigin.com/the-gold-standard-what-it-was-h... [6] Irving Fisher, The Debt Deflation Theory of Great Depressions https://www.jstor.org/stable/1907327 [7] Hyman P. Minsky, The Debt Deflation Theory of Great Depressions https://core.ac.uk/download/pdf/232609677.pdf [8] Marc Lavoie, Endogenous Money: Accomodationist https://www.researchgate.net/publication/287788671_Endogenou... [9] David Graeber, DEBT: The First 5000 Years https://en.m.wikipedia.org/wiki/Debt:_The_First_5,000_Years [10] Wikipedia, Silvio Gesell https://en.m.wikipedia.org/wiki/Silvio_Gesell

Apologies for the lengthy response, it's a personal pet peeve.

[bboygravity]

You addressed only 1 of my example points and your post doesn't explain how USD is not essentially "printed" (digitally) out of thin air (or I'm too dumb to read which is entirely possible).

[infecto]

You actually had examples? I read your post and saw nothing but unsubstantiated conspiracy.

[bboygravity]

Look up the meaning of "failures to deliver" in the stock market. In short: it means stocks sold by market makers and never delivered. AKA: they take your money when you buy a stock, it appears in your account, but they didn't actually deliver anything.

Then look up how many of those happen daily in any US stock.

Or read up here: Naked, Short and Greedy: Wall Street's Failure to Deliver by Susanne Trimbath

[infecto]

FTD has nothing in relationship to gold stored in the Fed’s vault. Surprised we would even jump there.

Now I ask again, do you have any proof that the Fed has taken the gold from these governments or are you simply guessing it’s possible?

[user____name]

Rip line endings :(

[breakyerself]

It's a good response. Too many people are enamored by the gold standard. They think things were better in the past when the opposite is true.