But the Gold is gone!
Prudent central bankers are probably more useful. (Good luck).
We do have our awesome American Silver Eagles, but I feel we need more variety.
I am probably a stronger advocate of sound money than anyone here besides Travis, but that is a guaranteed way to lock things up in a liquidity crisis.
You cannot continue deficit spending when on a gold standard.
Politicians from both parties love deficit spending.
Therefore instituting a gold standard will never happen.
There is not enough gold to go back on the gold standard. You might be able to go back on it fractionally.
You have to understand how money is created now under our present completely fiat, Federal Reserve system.
Once you see how money and debt are so easily created, you can see how it greatly corrupts government and society. After all, money and the cost of money is the most important commodity of all. The signals it sends dictates nearly every decision you make.
I, for one, am a very strong supporter of a precious metals standard.
When I have discussed this, I’ve ben told “ok take your salary, assets, etc. and chop off a zero on the right (divide by 10! ** )”. As long as I buying power did not change it wouldn’t matter much to me. I am sure there would be a psychological effect on many.
** Now I don’t know who “they” arrived at the ‘divide by 10’ number. I do agree there would be a huge contraction in the money supply. ( I guess its possible it could be more then 10!)
You can’t eat it. You can’t drink it. It won’t keep you warm, or cool, or shelter you from the elements. So in times of great distress it is not all that useful.
I Think its possible we might find that out
Well to back every dollar with gold the estimates are the price of gold would have to be 20,000....
I’m ignorant as can be here but it seems to me if you own some gold currency you might want to have a look at it because the government is telling you right there what it’s really worth.
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.
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.