in before the thread gets locked for...reasons

The man's a complete fool. How do you get into a position of advising the administration, and you, literally, don't know what you are talking about?

I think we are all waiting for your explanation…

Thank God!!

But they aren’t much smarter than that fake video makes out when you start talking MMT.

Your post confuses me.  

Why is gold a "store of value"?  It's a shiny yellow metal with not a lot of industrial uses compared to other things.  Why does it have any special value?  Why not aluminum, which is much more useful?  Or, iron?  Or plastic, which is in everything?

The Department of the Treasury records U.S. Government owned gold reserve at the values stated in 31 USC § 5116-5117 (statutory rate) which is $42.2222 per Fine Troy Ounce of gold.

What if it went to market value?

If it went to market value, it would be just like any other commodity and the value would fluctuate daily, and it would no longer be a benchmark with which to measure the value of, say, a USD.

Lol

Its only value is people closing their eyes and believing it still has value.

Unless someone is holding a gun to your head and forcing you to take it. We'll get there.

It would seem he is being asked to explain MMT.... not defend it.

Not trying to cover for him. He still seemed in over his head.

They know exactly what they're doing. Their goal is to destroy the middle class and economy as a whole. They want two classes, the rich and us serfs.

That's true of all currencies for all time.  If faith is gone, the currency turns to sh*t.

Yeah in think even gold. Which is rare but still has pretty limited utility.

SHTF commerce will be like trading 5 steaks for 4 lbs of rice.

I expected bullshit.

I didn't expect that level of incompetence.

Holy fuck.

A balanced budget decree can be a two edged sword. The easiest way to guarantee a balanced budget is to increase taxes to cover shortfalls. Taxes would skyrocket if there was any shortfall. There would need to be finely crafted punishment for any budget problems.

That needs biden shopped in the right in the center.

Bingo.  We have a winner.  However, it has to be valued in something common to everyone, and in which they have faith.  Hence, a currency.

That needs biden shopped in the right in the center.

They’re not incompetent. They use it as a shield for their evil. Look at FBHO?  We were all screaming his incompetence during those years. They are smart, they are competent.

Buy still cunningly evil.

Let me help the gentleman out.  Here's how the modern monetary system works.

They uh buy bonds

You know , the thing

Your money is lit on fire. It's like crypto burn , it ensures it has value because the government keeps taking it away.

Smoke and mirrors.

An early 1970s gold price is not a usable benchmark, except possibly to compare to other early 1970s prices.

That man has never picked up anything heavier than a pencil

Agreed, but who gets to re-set the price, and when, and why should we trust them?  What is the "correct" price, and why?

@1cheapshot

Explain to me like I'm five why:

1. Gold cannot keep up with changes in the economy? Gold has an anual inflation rate of 3-4%.

2. An elastic money supply that can be expanded and contracted at the whim of the government is good?

3. A finite supply of a commodity shouldn't back our fiat currency?

4. How is inflation not theft?

So yeah we print the money and people buy the money.

It has to do with the Eurodollar system, which is just a fancy way of saying there can be more promises to pay in Dollars (or gold, or anything else) than there are dollars to meet that demand.  Take this example.

Assume an economy with a total of $100,000 in gold coins circulating as currency. Joe puts his money in the bank, the bank lends 90% of it to Lou to start a business. Lou is building boats, he promises to pay his suppliers at the end of the year in gold that he hopes to make when he sells the boat. Sam is going to buy Lou's boat, with gold he hopes to have on hand at the end of the year when the boat is ready. With everyone doing that, there are $1,000,000 promises to pay in gold and $100,000 in circulation. This is fine unless there is a recession/depression, in which case the entire thing collapses, bank runs, etc. The idea is that with fiat currency, the Federal Reserve can be the lender of last resort to keep key institutions, like major banks, solvent until the economy improves.

And yes, inflation = taxation and taxation = theft, but it is a question of tradeoffs.  The big fear is deflation, as in the past it leads to economic collapse in a similar manner. End producers of goods go insolvent because they have to lower prices, they lay off people, then their suppliers do the same, etc. and it cascades. We'll see if this theory holds as China is currently experiencing deflation.

We've chewed this tobacco before:

https://www.dailyhistory.org/What_Role_Did_Inflation_Play_in_the_Collapse_of_the_Roman_Empire

We are waiting for the market to crash any day now for no reason......

Why is this at all surprising? If he’s a cabinet member it’s just a political reward sweet gig.   What did Buttigieg know about transportation or whatever he’s in charge of?

The reality is that the US govt doesn't really borrow that much money. It is all a slight of hand.

Sure the treasury prints and sells bonds to fund the continuing deficit and refinance the debt, and some are actually sold to people, investment groups and foreign govts.

But the fed reserve 'buys' the majority of US treasury debt when nobody else will buy it at the rates the treasury wants. The fed reserve 'owns' the majority of the US debt. Since the fed reserve creates US dollars at will, never gets audited, and doesn't need a return on investment ( because they create dollars at will and never get audited so no need to get their capital  back ) the fed reserve isn't really buying it or investing, the fed reserve creates the money to buy the treasury debt and the fed reserve is more like a black hole where that debt can go and never needs to see the light of day. So in reality, the US just prints the dollars it needs ( but it is printed by the fed reserve which is called a bank but it is neither a bank nor is it federal ) it is a slight of hand and fools a lot of people.

https://findingmoneyfilm.com/

from this movie, just being released.

https://findingmoneyfilm.com/faqs/
This is pretty good.

Because that was what was decided on.

Aluminum is used in pennies these days, just like copper used to be, but a copper penny is worth more in copper than a penny is worth, so now they use aluminum which is cheaper.

The biggest question is why is most money made of paper today, because it started as an easy way to carry money and you could trade it in for heavy gold or silver. Then all of a sudden you could not. Paper is used because it is very cheap, although it is getting to the point that the paper used in a dollar bill and the process make that dollar bill is almost cost more than the dollar bill is worth, so eventually it will be made of plastic or maybe just not made anymore.

During the revolution, the newly declared United States of America no longer had backing of money from the crown and they had no gold or silver so they printed Continental Dollars out of paper to fund the revolution. 4 years alter the a blank piece of paper the size of the Continental Dollar was worth more money than the dollar that it made. As a result, the Constitution gave authority to the treasury to 'coin money is silver and gold'. Independent banks created paper money that you could trade for gold and silver at their bank. Then the fed reserve was created to create federal notes that you could also trade for silver and gold, so it almost met the authority as spelled out in the constitution and then like everything govt, it eventually crept to the paper notes being backed by nothing instead of gold and silver ( which cost money to mine, refine and stamp  so the volume was limited by time and expense ) and inflation took off. back when the US treasury minted $5 and $20 gold coins, those coins kept they monetary value because there was little to no inflation due to a very finite amount of gold and silver available so the money supply grew very slowly because they needed to have the gold and silver. Today the money supply grows by strokes on a keyboard, there is little expense or time involved in expanding the money supply so inflation is rampant and considered normal. It is not normal is it a wealth distribution system that favors a select group of people, the people that get the new money first before that new money dilutes the value of the rest of the money.