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Originally posted by Lesbianosaur In Weimar Republic Germany, the value of the Mark was tied to gold reserves... but when Germany owed more in reparations than it had in gold + foreign reserves, hyperinflation resulted. The government had no choice but to print off more money to cover debts owed under Versailles, resulting in extreme hyperinflation as the value of gold/mark plummeted.

The same thing can happen in an unpegged currency too? So why is Weimar hyperinflation different from say Zimbabwean hyperinflation, which is a fiat currency..?

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Originally posted by Krypton The same thing can happen in an unpegged currency too? So why is Weimar hyperinflation different from say Zimbabwean hyperinflation, which is a fiat currency..?

Well, one, because the Zimbabwean government is retarded, and two because it doesn't really have anything to do with their exchange rate, but that wasn't the point anyhow. Anybody who views gold as a savior ignores the fact that it is just as instable and dangerous as a fiat currency, with few of the benefits in flexibility that a floating exchange rate gives us on a daily basis.

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I think I see what fiat currency really is now..

Fiat currency is backed by the value of all goods and services plus the credit rating and backing of the government.

But, then we go back to what the Fed really is. Are they government, or are they private working with government? If they are private, then government does not back the currency, the Fed does.

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Originally posted by Krypton I think I see what fiat currency really is now.. Fiat currency is backed by the value of all goods and services plus the credit rating and backing of the government. But, then we go back to what the Fed really is. Are they government, or are they private working with government? If they are private, then government does not back the currency, the Fed does.

The Fed is private, but the Chairman is appointed by the government to act as steward.

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Originally posted by Lesbianosaur The Fed is private, but the Chairman is appointed by the government to act as steward.

Who chooses the candidates to be decided by the government?

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Falling home values seems to be balancing out with increased investment...

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Foreign buyers snap up 2nd homes in US By LESLIE WINES, AP Business Writer Mon Dec 24, 1:10 PM ET NEW YORK - Panden Rota, a Nepalese producer of fine rugs, is about to become a Manhattanite, the owner of a sumptuous apartment in the luxurious downtown neighborhood of Battery Park City. His primary residence will remain Katmandu, but his new home will allow him to spend more time at U.S. showrooms that display his rugs and with a brother and sister in New York. "I looked at many places and I decided that a Manhattan apartment will always hold its value," he said. Rota is part of a growing wave of foreigners who buy second homes in the U.S. for work and play and as an investment. Cosmopolitan cities like New York and Miami have long served as second homes for affluent and accomplished foreigners. But the trend is growing. One in five American realtors has sold a home to a foreign investor in the past year, according to the National Association of Realtors. The events of 2007 have made the U.S. much more affordable for international home buyers. Severe dollar declines against the euro and pound have made U.S. homes much cheaper for Europeans. But even foreign buyers without that sort of currency advantage are benefiting from sharp drops in housing prices at a time when problems in mortgage lending are keeping many Americans out of the market.

http://news.yahoo.com/s/ap/20071224...Nc7TE688qIDW7oF

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Originally posted by Krypton Who chooses the candidates to be decided by the government?

Nominated by the President, sent to a Senate committee for recommendation, and then if sent to the floor, voted on for confirmation.

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Originally posted by Lesbianosaur Nominated by the President, sent to a Senate committee for recommendation, and then if sent to the floor, voted on for confirmation.

Yea, but who chooses the candidate pool from which the president picks??

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Originally posted by Krypton Yea, but who chooses the candidate pool from which the president picks??

Depends on the Administration - usually a task force will be set up that will consist of congressional liasons, white house staffers, and a few area specialists from perhaps the Fed or Commerce Departments in the case of Fed appointees.

So for instance, you might get a staffer from the chair and ranking member of the Senate Finance Committee, the Deputy White House Chief of Staff and a few assorted White House assistants, and an Undersecretary for Commerce or some such group.

But again, the way the White House is organized and how it operates depends on the Administration and personalities involved.

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The Crash -- Coming Financial Collapse of America

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A very scary and possibly real situation that could unfold very shortly.



Also, check out "History of the Federal Reserve" for other information that connects with this video.

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DISCLAIMER: Predicting the market is predicting the future. You can only count on probabilities.

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Originally posted by Krypton The Crash -- Coming Financial Collapse of America [[ LINK REMOVED ]] A very scary and possibly real situation that could unfold very shortly. Also, check out "History of the Federal Reserve" for other information that connects with this video. [[ LINK REMOVED ]] DISCLAIMER: Predicting the market is predicting the future. You can only count on probabilities.

so how is the federal reserve profiting from the crash?

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Originally posted by pkcRAISTLIN so how is the federal reserve profiting from the crash?

LOL, I dunno, I'm watching right now to find out!