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Forum Post: about the gold standard

Posted 13 years ago on Oct. 8, 2011, 12:15 a.m. EST by ronimacarroni (1089)
This content is user submitted and not an official statement

Let's say we went back to the gold standard 1 gold nugget=$1000 Then the government prints money 1 gold nugget=$10,000 Then the government prints more money 1 gold nugget=$100,000 Am I missing something?

10 Comments

10 Comments


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[-] 2 points by onesquarelight (60) from Wormleysburg, PA 13 years ago

The government couldn't inflate currency if all notes were warehouse receipts for the exact amount of gold in storage. That's why it's desirable. It places a natural limit on the amount of money that can circulate at any given time. A stable currency leads to deflated costs over time which is good for everyone. It also allows for entrepreneurs and business men and women to better predict the market which leads to less waste which leads to more jobs. As it is now, there is no limit to the amount of paper dollars the Fed can print as each note is not representative of a real world commodity. The value of the dollar is derived by force of law.

[-] 1 points by GargamelSpaceman (3) from New Gloucester, ME 13 years ago

Gold is for people who have not watched The Secret of Oz.

[-] 2 points by gawdoftruth (3698) from Santa Barbara, CA 13 years ago

there is not enough gold in the world to represent the money. this is a con scam corporate oligarchy meme given to you as a con server dupe in order to identify your team side and in order to make sure you are always fighting for something absurdly impossible and patently comically stupid and ignorant.

[-] 1 points by looselyhuman (3117) 13 years ago

FFS.

[-] 1 points by GoldStandardNow (1) 13 years ago

This is a 5 step plan, that outlines how the US can return to the gold standard and remove the US from its current economic cycle. Is returning to the gold standard perfect? By no means, however it is the least imperfect system.

http://www.thetruegoldstandard.org/5-step-monetary-reform-plan.html

[-] 1 points by Dutchess (499) 13 years ago

Another concept..Gold can be divided on paper just as much..Anything can be divided on paper endlessly. So your argument with regards to gold not being divisible does not hold up. Egold is the way these days to trade online!

[-] 1 points by Dutchess (499) 13 years ago

Ah, I forgot to mention...even the IMF ( serious or not) contemplated this last year with the return of the gold standard. But first things first...where is the gold at Fort Knox. Why is the govt stonewalling those who are demanding an audit. If it exists, it should not be a problem for the U.S. If it doesn't sh*t will hit the fan! Also , the U.S is the third largest gold mining producer in the world after South Africa and Australia and goldmining has become big business again recently ;)

[-] 1 points by GargamelSpaceman (3) from New Gloucester, ME 13 years ago

http://www.youtube.com/watch?v=JXt1cayx0hs&feature=colike

Also read http://en.wikipedia.org/wiki/Hard_currency

A gold standard is not sound money with fractional reserve banking.

[-] 1 points by Dutchess (499) 13 years ago

Yes, you are missing the International world that also wants to go back to the gold standard to demand accountability. China and Russia both abandoned the dollar between their trade and both want to introduce the goldstandard at the G20. Also they are buying up goldmines right here in the U.S. At least China is!

[-] 1 points by touchit (126) 13 years ago

really ? That is going to be really hard...

The idea is staggering, not to mention fraught with difficulties. China's central bank currently holds 1,054 tons of gold, about 1.8% of its total reserves. China holds $2.85 trillion in foreign reserves, which means the country would need to buy roughly 66,000 tons of gold to fully back its currency. Even if the country upped the ante to just 3%, the country would need to buy 1,000 tons.

Technically, a full gold standard isn't an option. Under the IMF's first amendment to Article IV of Agreement, ratified in 1978, participating countries are not allowed to peg their currency to gold.

But that doesn't mean that China won't try to legitimize its currency by ramping up its gold holdings. The U.S., which sports the current world reserve currency, holds more than 8,000 tons of gold, more than 8 times the size of the SPDR Gold Shares (GLD) ETF.