ANZ lifts interest rates

Lovey80 said:
Allowing the free market to determine the price of money? Which would be self correcting when imbalances came. No false signals, no (or limited) excess credit hitting the market creating bubbles and the inevitable painfull corrections.

Central bank should be there just to print money when the set amount of gold/silver comes in and settle trade defecits with nations annually.
Click to expand...

its the banks that should hold the gold and offer the gaurantee, not some sponsored agency IMO.
 
After everything you have witnessed over the past decade you want to trust banks with the gold and trust thier integrity?

Remember it was private banks that tried to cheat the gold standard in the past by printing more gold certificates than they had gold for.

IMO a central banks sole responsibilities should include:

1). Maintaining a set gold to cash ratio (not fractional in any way) so that every cent of cash in circulation in AUD matches up with with an equivalent amount of gold in the vault.

2). Yearly Audits of above

3). Settling trade defecits so that when a country runs a defecit gold leaves the shores.

When gold leaves the shores, it shrinks the money supply causing inflation in asset prices relative to the currency. Less cash to go around-people tighten belts- trade defecit declines-less gold leaves shores.

Self correcting cycle that works fine without government manipulation.
 
it was the advent of the federal reserve that destroyed the gold standard
 
hiho said:
go the free market, you little beauty
Click to expand...

A free market operates effectively when there is genuine competition.

Deregulation of banks and utilities was supposed to result in cheaper prices and a better deal for the consumer. Didn't happen.

Allowing mergers and acquisitions within the banking system has made things even worse.

So when that f**kwit Swan says "you should walk out on your current bank and get a better deal elsewhere" he is fully aware that the bank down the street is going to be the same s*it.
 
hiho said:
it was the advent of the federal reserve that destroyed the gold standard
Click to expand...

Gold standards were cheated by private banks well before the Federal Reserve. A central bank should be in place to prevent this.
 
You must log in or register to reply here.
Back
Top