Federal Prime what now?

[asterroc]

There's this Federal Prime Interest Rate sorta thing. And the Feds change it. And somehow it makes all other interest rates change and whether people can get mortgages and stuff.

Explain.

Comments

[tiurin.livejournal.com]

Oh, I am well aware that gold has no intrinsic value- it amuses me greatly when gold bugs argue that it does. However, the sheer quantity of people who believe that it has great value, along with the thousands of years of cultural weight, makes it a phenomenal hedge against currency crises. There's 2.5 billion people in China and India who want the shiny.

There's plenty of black comedy to go around- an expensive war or two and the fiat money printing press will trigger massive inflation. Go to a gold standard, and it sets the country up for some really ugly deflation.

[zandperl.livejournal.com]

I feel like diamonds have a bit more inherent value, as they are used as tools more readily than gold is. But then again, with synthetic diamonds out there, maybe their monetary value is less stable than the monetary value of gold.

[dirkcjelli.livejournal.com]

That value is quite low, and backed on slaves.