Posted on 11/02/2022 9:29:54 AM PDT by SeekAndFind
Ah, but Gold isn't some arbitrary commodity. Gold and Silver are Constitutional money - your Founders knew what they were doing.
Not to say that a commodity-based currency can't work. I think the BRICS countries are going to make it happen.
So your solution is to send trillions of dollar to enrich farmers in India (Indians hold a huge amount of gold) and to hand control of the US money supply away from the US Treasury and the Fed over to gold mining companies in the two largest producers, China and Russia?
Just because gold and silver are referenced in the Constitution doesn't mean they're not arbitrary. If founders had added bronze or iron coins (like China had) or Platinum or Palladium it would have been just as arbitrary.
Right now the US Treasury and Fed jointly control the value of the dollar. With a gold standard, China and Russia would. That would be bad, actually!
Needs a transition step - GEOs Gold Equivalent Oz
Basically convert all assets to an estimated dollar amount, then covert to gold oz (all on paper). Congress then sets the currency exchange rate for the next 10 years. X dollars in circulation vs Y GEOs. Then limit the production of dollars to maintain this ratio.
This then helps to disentangle the currency from the Federal Reserve. This also would enable a gradual alteration of that ratio to reflect a specific gold ratio.
Yes - but of course in the case of the United States (with the Petrodollar reserve currency) literally nothing stopped the Federal government from vastly overshooting the economy's productive capacity.
The only real barriers to the exit of foreign creditors from the dollar system have historically been the respect shown to US military power, and the return on Treasury bonds. With a real price inflation of maybe 18%, number 2 isn't looking so good right now.
When the Saudis move into BRICS the dollar will crash like a fallen angel - now is the last opportunity to find a new basis for the dollar
Instead of worrying about what gold and Bitcoin might be worth on any day, why not just stop spending?
My solution is to recognise reality.
The US had 20K tons of Gold after WW2. This wasn't due to domestic gold production. The US produced and traded goods and services that people wanted.
Its not like the US can't compete on the international stage. It's just been much easier to buy things with promises and credit. That time is coming to an end.
US citizens currently - currently, mark you - have purchasing power that vastly exceeds that of most Indian farmers. Its time to buy some Gold and Silver while you guys still can.
“The bill highlights that the inflationary US dollar has been eroding the industrial base of the US economy, enriching the owners of financial assets, while endangering workers’ jobs, wages, and savings.”
Yeah, that’s called “working as intended”. This is what happens when you let the financial sector control you currency. They implement a currency that robs everyone else in society for their own benefit.
Well said. Thank you.
The stability is timeless. :)
Gold and Silver were recognised as money in the Constitution because the Founders recognised reality.
Money has a multi-part definition: requiring e.g. fungibility, the ability to act as a share of value, the ability to meet a coincidence of wants, and so on.
Only Gold, Silver (and plausibly Copper) fit all of the requirements of Money. Petrol doesn't. Ammo doesn't. Rhodium doesn't. Jade and cowrie shells and land don't.
Historically societies not trapped on desert islands nor ruled by tyrants have freely chosen to adopt Gold and Silver as money. The Founders recognised the vote of history.
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Right now the US Treasury and Fed jointly control the value of the dollar
Until the market says different. At 18% inflation, people are looking elsewhere. The collapse of the Euro will give the Dollar a reprieve, but when Saudi moves to the BRICS I can't see the dollar holding up for long.
“Peg the dollar to corn for example!”
You don’t back currencies with non-durable, perishable commodities.
“That’s called a depression. Not a good idea!”
We’re heading into a depression anyway caused by the money printing.
Nearly every single American is addicted to credit purchases. The world system is addicted to and runs on a system of finances directly in opposition to the Creator of the Universe, God, Jehovah, Yehova, Christ, the great IAM. Until what is to come, this system of paying a tax to those who make the credit/money available is not going away.
Without the ability to pretend that digits on a computer are worth something, the paper dollars in your pocket, the crypto in the cloud are just so much junk. Business cannot operate, farmers cannot plant or sow, chinese builders of our power production cannot send us a few measly KWh producing things. It all grinds to a halt. In short, we are well and truly hosed.
I would love to get back to a value backed currency, but anyone that gets close to it will be killed or lose their power to be heard.
We are living in satans world. He designed the power structure to be this way through those who would bow.
He offered Christ the entire world, if he would just bow down to him. He couldn’t have done that without having the power to grant it. So we are stuck until a Messiah comes and sets things straight. Spiritually we are not under the control of Earthly things, but physically we still are.
Come quickly Lord Jesus and let it be so.
“Labor productivity has jumped *dramatically* since 1966...”
That just means the situation is even worse than looking at the raw inflation numbers portrays. If labor productivity has increased, then the price of the vehicle (if materials are about the same) should have decreased, not increased tenfold.
“provided they don’t exceed the productive capacity of the real economy and drive up inflation”
Which they inevitably always do.
works as long as gold price is ten million dollars per ounce ...
Do you want the Biden administration to have more power ? I don’t. America is now one of the most dangerously out of control dictatorships in the world. No fair elections, political prisoners, gearing up for mass violence against its own citizens as well as for nuclear war. A collapse of American power would have a pretty fantastic effect for liberty within the Western world.
Maybe not so much for China and Russia’s neighbours, but hey. You have to have other big dogs to keep the American dictators under control.
You are talking to people who are afraid. They don’t think that American people making a product wanted and needed by Russia or China, would entice them to send their gold to us in exchange.
It seems simple to me, place gold into a vault, value currency to a set amount and trade in dollars or coin, just as now. Make it a basket full of metals as things redeemable for paper or things. Work it out and it will be quite feasible. The only thing that will happen is, debts will have to be forgiven, and money lending will be a pittance to what it is today. Very few credit cards, or loans without some tangible thing being offered in the event of default. Like your house, your business or your Yacht. Hence the “speed of money” will slow to a crawl. A lot of rich people will have to actually work.
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