Posted on 03/18/2020 9:01:22 AM PDT by A_perfect_lady
I know very little of these things. I'm an English teacher, and a mathematical cripple. But it seems to me our economy could shrink to a point where tying our money back to gold might be possible. I'm asking Freepers because most of you know more about this than I do. So... what do folks here think?
You can burn it to stay warm!
It’s my opinion that returning to a gold standard would place as much or potentially quite a bit more into the hands of Goldman Sachs, JPM etc; as there is now.
Passed in 1981, Public Law 95-435, section 7 says that the government may not spend more than it takes in. Who do we arrest for the repeated violations? Is it a felony or a misdemeanor?
Language from post above:
SEC. 7. Beginning with fiscal year 1981, the total budget outlays of 31 USC 27. the Federal Government shall not exceed its receipts.
I bet that law has am emergency declaration provision, which every year we’ve been in an emergency since, what, 1921?
Yup, just assign a given value to it like the old days, say like $50,000 per ounce. Not sure if we have any significant quantities anymore though. Don’t forget silver either. You can still buy a gallon of gas for 3 pre-1964 dimes at melt value. Funny how real money works like that.
It is on the way, Trust the Plan...
The Deep state in line with the Fed and the Central Banks are on the way out. Globalism un-tethered will create supply chain issues as have appeared with the massive move of manufacturing to China.
Note how Obama dismissed the idea of Manufacturing jobs returning to our country, he said the would not be coming back...
The Central Banks invested heavily in China and propped them up to reinforce this model and we were to become a “Service Economy” supporting what others built and sold to us.
That is ending and companies are seeing the results of going all in to this model. We are moving to get off the “Petrodollar” or other ill founded currencies. The Fed is just an entity of the Central Banks and every dollar we “borrow” from them bears interest and is a fiat currency with the backing used of every American born to be a debtor to repay it.
Think Income tax, it was initially based on the wealthy and used to take some of the money they made on investments. The work we do is a payment for service, 8 hours at x wage is a contract of sorts. There is no “income” only compensation for what we do for someone. But the Fed needs to be fed and so here we are.
It will be changing I predict within 2 years unless something absurd happens in November, it has to.
Personally, I think if the new stimulas doesn’t create hyperinflation, were good to go with the virtual credits forever and actual cash is history. Then all economic theories are out the window.
Ok, here are a few facts and an outline of the plan:
1. President Trump said in 2018 “I have enough Gold to take down the Fed.” Any sniping remarks that the gold is gone are based on rumors festering to a cultish burrow.
2. The President will first drive the Fed into a negative interest rate policy (NIRP) and cause it to eventually crash in say 3+ years I imagine. In the meantime, the NIRP will wipe out the deficit and start reversing the national debt. This is due to the Fed paying interest to the US government on its existing trillions in deficits and debt.
I know, I know, hard to fathom, but this is the Trump genius. There is no possible way of erasing the deficit via taxation or of reducing the debt. The only way out is via a NIRP. This causes the Fed to be abolished but that is what happens to central banks when they can no longer load the population, consumers, businesses, government with more debt. Their only product is debt. If they can not find a place for their product, they are suspended.
3. The Bond Repo market of the last couple months and especially in the last few days tell the story, but it’s technical so we will leave it for now except to say it’s a bailout similar to the financial bailouts of the financial collapse of ten years ago. It is thoroughly corrupt and if the public could absorb and understand what is going on behind the scenes, there would be blood in the streets.
4. While the NIRP is in place, there will be horror story after horror story of the feds seizing bank accounts, of citizens losing their retirements and all their life savings. This will occur in an attempt to rally the public to reverse the NIRP.
5. A NIRP will allow hundreds of thousands of entrepreneurs to start new businesses, allow existing businesses to expand, allow taxes to be cut, all which will strengthen America’s middle class which has been dying in the last decades. America will enter a new golden age.
6. A NIRP will stay in place until the Fed is merged inside the Treasury Department (already in discussion and planning) and made inactive.
7. The Treasury will issue US Notes (which is not new, American currency history was mostly US Notes) backed by gold and silver. I do not believe the gold and silver will be exchangeable. These metals will only serve to provide an ‘index of value’ due to their finite supply (although transmutation technology can disrupt but we don’t need to go there for now). As a result, America’s new golden age will be made durable by stable currency.
The current Chinese Virus play is an attempt to stop the new golden age of America. But it will pass.
To answer your original question, it’s almost time but not quite yet. Remember Trump is a builder. First, demolition, clearing, and cleanup, then a new foundation for a vibrant new modern multistory economy.
When we, and other countries, were on the Gold standard the price of gold was fixed. Now it’s allowed to float and the value of an ounce of gold will change from day to day. Even with that the Treasury values, for accounting purposes, each ounce of the 8133 tons of bullion the U.S. holds at a fraction over $42.22 an ounce. If I can take $40 to my local bank and exchange it for almost an ounce of gold and then sell it on the open market for $1500 then within a few weeks the U.S. gold reserve will be gone. If you let the value of the U.S. reserves float with the going rate then the value of your dollar fluctuates by the minute.
The gold standard would crash the housing market. The gold standard won’t work with 30 year mortgages because the gold standard is inherently disinflationary.
Consider a population on the gold standard that grows by a certain percentage each year. Unless gold production exceeds the population growth, there will be less gold per person. Since a person will have less gold every year, it will be ever more difficult to pay their mortgage.
Very nice.
My economic background is limited but I had a feeling that there were big things moving behind the scenes. Everything is connected and I think everything is actually going in a good direction.
When we were on the gold standard weren’t there mortgages?
How are mortgages different now than then?
yes, but won’t happen. This way currency loses its value at a rate of 1-2% a year, and the government benefits from that, while the elderly with savings get the royal shaft.
Regarding the gold standard, consider that misguided FDR’s anti-gold hoarding executive order 6102 was not well thought out imo.
Executive Order 6102
The executive order was arguably partly justifiable under Congress’s constitutional Article I, Section 8, Clause 5 which expressly gives Congress the specific power to regulate the value of money.
"Article I, Section 8, Clause 5: To coin Money, regulate the Value thereof [emphasis added], and of foreign Coin, and fix the Standard of Weights and Measures;"
I suspect that gold investors were probably hoarding gold in those days to the extent that were interfering with Congress’s express power to regulate the value of money. So FDR’s executive order effectively hoarded gold for Uncle Sam so that Congress could do its enumerated duty to regulate the value of money.
Corrections, insights welcome.
On the other hand, speaking of money, FDR’s executive order blatantly violated the express constitutional requirement by the states for the states not to use anything but gold silver for legal tender imo.
"Article I, Section 10, Clause 1: No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts [emphases added]; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility."
Regarding your question if this is a good time to get back on the gold standard, it is actually a big, wrongly ignored constitutional problem that we need to deal with imo.
Remember in November!
MAGA, also KAGA! (Keep America Great Always!)
Supporting PDJT with a new patriot Congress that will promise to fully support his already excellent work for MAGA will effectively give fast-working Trump a third term in office imo.
Any time is a good time to go back on a gold standard, and the sooner the better.
However, it isn’t going to happen any time soon. Americans demand — more strongly than ever — that government distribute money and various goods and services without increasing taxes. Government can only do this by using the Federal Reserve to create money from nothing. Government cannot do that with gold, but it can do that with Federal Reserve fiat money.
Aha! Then you’d be beholden to me and my kind, the programmer.
Only marginally better then the politician!
Yeah, see what I mean? ;-D Scary, just scary.
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