Zeros don't matter, add or take away who cares?
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?
The is a reason why there was strong public support to get us off the gold standard. Basically we are tying our economy to the volatile fluctuations of a single commodity. While the Federal Reserve us “far” from perfect, properly managed, it creates a far more stable economic environment.
Consider the highs and lows of the oil market. If we were on the gold standard we would be vulnerable to hostile parties seeking to manipulate the price of gold which could create the same swings in value. One year your savings and portfolio’s could look quite good for retirement and the next year it could plummet. Look at the problems in 19th century America with two major depressions both to some degree the results in price fluctuations in gold. Google William Jennings Bryant’s speech: “The cross of gold”.
MIRACLE ON MAIN STREET
SAVING YOURSELF & AMERICA FROM FINANCIAL RUIN.
THE ANSWER’S IN THE CONSTITUTION...AND ALWAYS HAS BEEN!
MONEY, GOLD, SILVER
Series of short videos explaining that the answer to much of our trouble is in the Constitution...and ALWAYS HAS BEEN!
#1 https://www.brighteon.com/aedb6454-b4f4-4f41-b792-3c7a611c8be1
#2 https://www.brighteon.com/8b71b711-18d3-445c-8bd3-66564e039d1f
#3 https://www.brighteon.com/c8cc4d35-4d45-4875-b44c-f485ccfdc813
#4 https://www.brighteon.com/71220228-56a9-4f01-aa81-5bdc8aea2ac5 (CAUSE OF INFLATION/COINAGE ACT)
MIRACLE ON MAIN STREET
SAVING YOURSELF & AMERICA FROM FINANCIAL RUIN.
THE ANSWER’S IN THE CONSTITUTION...AND ALWAYS HAS BEEN!
MONEY, GOLD, SILVER
Series of short videos explaining that the answer to much of our trouble is in the Constitution...and ALWAYS HAS BEEN!
#1 https://www.brighteon.com/aedb6454-b4f4-4f41-b792-3c7a611c8be1
#2 https://www.brighteon.com/8b71b711-18d3-445c-8bd3-66564e039d1f
#3 https://www.brighteon.com/c8cc4d35-4d45-4875-b44c-f485ccfdc813
#4 https://www.brighteon.com/71220228-56a9-4f01-aa81-5bdc8aea2ac5 (CAUSE OF INFLATION/COINAGE ACT)
MIRACLE ON MAIN STREET
SAVING YOURSELF & AMERICA FROM FINANCIAL RUIN.
THE ANSWER’S IN THE CONSTITUTION...AND ALWAYS HAS BEEN!
MONEY, GOLD, SILVER
Series of short videos explaining that the answer to much of our trouble is in the Constitution...and ALWAYS HAS BEEN!
#1 https://www.brighteon.com/aedb6454-b4f4-4f41-b792-3c7a611c8be1
#2 https://www.brighteon.com/8b71b711-18d3-445c-8bd3-66564e039d1f
#3 https://www.brighteon.com/c8cc4d35-4d45-4875-b44c-f485ccfdc813
#4 https://www.brighteon.com/71220228-56a9-4f01-aa81-5bdc8aea2ac5 (CAUSE OF INFLATION/COINAGE ACT)
The CONSTITUTION calls for a precious metal standard.
MIRACLE ON MAIN STREET
SAVING YOURSELF & AMERICA FROM FINANCIAL RUIN.
THE ANSWER’S IN THE CONSTITUTION...AND ALWAYS HAS BEEN!
MONEY, GOLD, SILVER
Series of short videos explaining that the answer to much of our trouble is in the Constitution...and ALWAYS HAS BEEN!
#1 https://www.brighteon.com/aedb6454-b4f4-4f41-b792-3c7a611c8be1
#2 https://www.brighteon.com/8b71b711-18d3-445c-8bd3-66564e039d1f
#3 https://www.brighteon.com/c8cc4d35-4d45-4875-b44c-f485ccfdc813
#4 https://www.brighteon.com/71220228-56a9-4f01-aa81-5bdc8aea2ac5 (CAUSE OF INFLATION/COINAGE ACT)
When the gold standard was put into place in the early 1900’s, it was ordered that ALL the gold currency that itizens owned, and all private bullion be rendered to the government. Today, with all those radio and tv ads wishing you to buy gold, issue paper, not physical metal. Imagine their dismay, with all that wallpaper!
Incorrect. It was in 1933 that FDR nationalized the gold and abrogated the gold standard.
The gold and silver standard was legislated in 1792 when Hamilton opened the Philadelphia Mint.
Yeah...go try to find some gold. Or even solver.
I just went to where I buy my bullion. The only silver eagle was a 1996 coin. For $84 dollars.
No other stock.
There was some gold but not much.
There were bars and other coins, but they are sketchy some times.
We are a week or two from being on the T.P. standard
Zeros don't matter, add or take away who cares?
I think a better approach might be petro-dollars. Each dollar worth some varying percentage of oil or gas or energy. The problem we have now is that we have fiat money. It only has “value” because you and I agree that this piece of paper is worth X. But governments want and want and want so they simply print more and more paper dollars. Because Obama doubled the money supply and then did quantitative easing (dumping an additional 87 billion dollars per month into the economy) any dollar we had before 2008 now buys about 30% as much as it did then.
We need a happy medium between a fixed amount of cash and the ability to expand the money supply as needed. Unfortunately, Obama did not spend a penny on self canceling debt, like nuclear power stations or oil refineries. (As examples of debt that cancels itself though earnings.) The money Obama dumped into the economy bought votes; the national equivalent of cotton candy.
Has nothing to do with Communism. China doesn’t care about environmental laws, and simply can pay workers much less.
Thank you for your in-depth reply. This is incredibly dangerous territory due to the capacity and tenacity of the opposition. I have heard internet conspiracy theories (which I tend to believe) that Qaddafi was taken down because he was trying to put his country on a gold standard. Clearly the Powers That Be don’t want this. What do you think? (And where did Qaddafi’s gold go?)
That’s a really good point about population growth vs gold supply stasis.
Wouldn’t there be a lot of fluctuation, though, with petro-dollars? I mean... oil and gas are expended, burned away. Gold is kept... does that make sense?
Well, there are other countries that don’t care about the environment either. Mexico. Most of Africa. India. Probably Russia. South America. Why didn’t Clinton and Bush want them to have Most Favored Nation Trading Status year after year?
That will never happen. This is because if you can swap dollars for gold, then too many people will do it.
The world will go to Special Drawing Rights by the IMF. The SDRs are pegged to a basket of currencies. The everyday person cannot own SDRs.
The intermediary will be the blockchains which takes existing fiat currencies and upgrade them to 2.0 version. The 2.0 version is to be able to send money around the world like we send emails. It will be free cross border transactions, and that is one Use Case.
Another use case is the crypto/digital assets can be a liquidity provider via financial institutions and Exchanges.
As for the Gold standard... Remember what happened in 1933 to 1974. Today it is a controlled market. The only gold that is good is physical gold in your hand. Good luck physically moving it between countries. Banks here could take it from you like they did in the past.
Most gold sold today are in paper form. This is why the price of gold is following. Plus the use cases of gold are not as high demand as in the past.
https://yourstory.com/mystory/9599111633-5-common-uses-of-gold
Reily wrote: “When we were on the gold standard weren’t there mortgages? How are mortgages different now than then?”
The short answer is no. Here’s a more complete answer.
https://bebusinessed.com/history/history-of-mortgages/
interesting!
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