Posted on 03/28/2018 11:33:11 AM PDT by MNDude
There is a reason that the gold standard was dumped. It constrained government in many areas.
It would mean a permanent deflation because of the fact you pointed to, there isn’t enough gold to fund the current economic system. How much gold would be a dime’s worth - 1 four thousandth of an ounce? May as well have the stone money of the Yak islands.
Control of the money supply would be given over to random prospectors’ finds, increased production from current and resumed mining operations and gold drawn out of other uses.
In essence the floating exchange rate international monetary system serves the purpose of a gold standard. Since all money is measured against all other currencies the value would start at the strongest currency. Switzerland I am sure. Thus, printing money would be reflected in a drop against the Swiss money. Thus the value of currency is a product of the Free Market.
“That will limit expansion of economy by limiting volume of dollars “
No, it does not limit the economy in any way. All it does is mean the VALUE of your dollar is not inflated away. A dollar from 1915 is worth about 4 cents today. We don’t have “more money”. We have “more” of a far less valuable money.
It is far better for the economy that when someone earns a dollar, it is a reliable store of value. By your logic an increase in money supply makes the economy expand. The truth is that our orgy of fiat printing leads to an Argentina, a Venezuela, a Zimbabwe, or a Wiemar republic. Just because we print at a rate slightly less than catastrophic failure doesn’t make it good.
OK, so in order to back the $$1.7 trillion in Federal Reserve notes you would need roughly 40,000 tons of gold. That is considerably more than all the gold held by governments throughout the entire world.
More like CWII.
Bring it on.
Read again with focus. I clearly said, I favor amount of dollars printed should be proportional to GDP. Only if GDP grows, FED can print more dollars.
Not if your currency was redeemable for the stated amount of gold. There have been many instances when countries allegedly on the Gold Standard went off redeemability, especially during and after wars.
You really believe you know the amount in Russia and china?
Real values are used so the effect of inflation is removed.
No, it’s more like 10.5 trillion. You are only counting paper dollars in circulation. Most money created isn’t made into paper and coin.
When the fed did QE and dropped a trillion into the economy, that wasn’t printed. It was simply created out of thin air and electronically deposited.
This total of dollars is called M2. A gold standard sets the value of a dollar paper or just electric in some bank account. About 90% of “dollars” do not exist in a physical printed or coined form.
Why? Then the government can just lie about growth of GDP, or inflation.
Why shouldn't consumers be able to enjoy actually lower prices from economic growth, increased productivity and technological advancement - rather than having it stolen through more printed money?
There is nothing in the Constitution which forbids the chartering of the Federal Reserve by the federal government.
This claim was blown apart by Hamilton’s masterly “Essay on the National Bank.”
Many residents desire more DC power and illusion. A grand delusion leading to destruction.
I was dumped because government wants to tax you and not say so. 96% of your money has been stolen in the last 100 years. It’s to pay for wars, a massive welfare state, etc.
Its much easier than going to the taxpayer for that kind of thing. And people are such morons they think their real estate has gone up in price, so they are happy, never realizing that it’s just a whole lot more of more worthless dollars.
The 100,000 dollar bar was introduced by Nestle in 1966. If it was introduced today, it would have to be called the 768,490 dollar bar.
/s
That is how it sorta was at one time like the cooper penny, gold dollar coin, silver dollar coin.
I could see a graduated worth of metals.
Actually, the power to set the value of the dollar is allocated in the constitution. Despite todays Hamilton infatuation, a privately owned central bank controlling the currency was an anathema to the founders.
Any profits of the federal reserve are turned over to the Treasury and the control is the federal appointment and Senate ratified of the Chairman and Board of Governors.
I love the idea. I’m not so sure it will ever become law, though; too much money to be made by Wall Street and the crony-capitalists under the current system.
“Gold Rush” is one of my favorite shows. Don’t mess with the gold market, please.
USConstitution is not hard to read. It prohibits the disenfranchised soveriegn states, “make any Thing but gold and silver Coin a Tender in Payment of Debts”. DC is required “To coin Money, regulate the Value thereof”. Coining is a direct reference to valuable metals.
USConstitution was neutered when the States lost their proper representation in Congress. Both _income_tax_ and _federal_reserve_ were created after the States were conquered by DC.
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