[Rytwyng]

We'd BETTER return to the gold standard. 'Cause if the Islamic gold dinar takes off, and we're still trading paper, we're in trouble.

How Islam plans to defeat the West with the Gold Dinar

Islamic Gold Dinar links

E-Dinar Trading Site

[raloxk]

Gold Stadandard was a good idea back then(1981) becasue no one had any idea how to reduce inflation. Today it would serve no purpose. The idea that money has to be backed by gold is antiquated. It also would not prevent a country from accumulating debt as some here think it would. The US went heavily into debt in WW1, despite the gold standard.

What is interesting on FR is people seem to think Gold has a God given value to it and that Fiat money is some how a sin. It doesnt, it is the interaction of supply and demand by man that gives gold its value, not the Lord in heaven.


The Gold Standard was a major contributing factor to the over inflated easy money policies of 1927-28 and the deflation of 1930-33. During the depression nations that abandon the gold stadnard quickest got out of the depression sooner than those like the US that held on.

[the invisib1e hand]

ok, I might have to swallow some of my words.

I can see mechanically how this could be *potentially* pulled off, though I wonder what will happen to the existing issues when the first installment of gold-backed ones hits the market...

and then there is the implicit demand for gold once this idea gets traction (if ever)...

i think it could be geopolitical suicide... and possible grounds for a bona-fide world war...

it's a big bet which might even be winner take all....

there still is the question of, 'why gold?' gold's value is largely sentimental. praytell, why should we unpeg the dollar from the standard of 'the full faith and credit of the US government' only to peg it to the 'full faith and credit of a shiny rock that is held largely under the ground of foreign nations?'

why not the 'oil standard?' (rhetorical question).

[Athwart]

I consider Greenspan a class act. I'm really surprised to see him using all caps so much, like some chat room shouter. Were these in the original article, or did you add them?

I think it would take a collapse of a major currency like the dollar or the Euro to create any sort of interest in resumption of a gold standard. Especially in an era of low inflation, it looks to most people as though "fiat dollars" are working just fine.

[.cnI redruM]

I notice that economic cycles were vastly more prevalent and steeper during eras where the US economy was on a Specie-Backed Currency. I wonder if a commodity-backed currency endangers the economic wellbeing of the country by tying the currency to a commodity whose value can widely fluctuate.

[patriot_wes]

It ain't ever gonna happen! You should read J.Edward Griffins - "Creature From Jekyyl Island" to find out why.

[joyful1]

If you've got time to worry about this, you've got too much time on your hands.

[winker]

First things first to see if this is where we need to go! Start off with a audit of the Federal Gold Reserves at Ft. Knox and all the other repositories and open the accounting to Public review and scruitany. Is it here or there? Only an audit will tell! Then we will know what the Gold fix is or has it been as many have speculated "Smoke & Mirrors"!

[templar]

We cannot return to a true gold standard. We can, however, institute a dual currency, a two tier monetary system. One for international trade (and to pay off our foreign debts) backed by gold and other American assets, and one for internal trade and domestic debt backed by property confisction and/or imprisonment for those who refuse it. It's an idea whose time has come (or at least is rapidly coming).

[af_vet_1981]

There are two answers and you get to pick the one you like.
1. No, it cannot. Gold is too expensive to use for walking around money.
2. Yes, it already has. You can buy gold for dollars on the free market. $20 Liberty coins are attractively priced right now.