Forum Post: Chasing the Rainbow is not a Wise Idea.
Posted 13 years ago on Nov. 21, 2011, 9:26 a.m. EST by JesseHeffran
(3903)
This content is user submitted and not an official statement
Now, I’ve been hearing a lot of horse manure about going back to the gold standard. As if global trade could be facilitated with precious metals. A resource based economy makes more sense than a segregated resource based economy. If you are going to use commodities to regulate the money supply, might as well use all commodities, capital and other economic activities to manage the supply of money. Chasing the rainbow worked well for America when under every mountain there was a pile of gold. But today, there is just too much economic activity in the world to allow one commodity to govern it all. The best analogy I can think of is the house hold budget which is fitting considering the word “economics” derives from a Greek word meaning house hold management. A typical home is cluttered with food, entertainment, water, precious metals and children to do chores. Where would the logic be if the matriarch of the house hold said, “All my clutter is useless except for my spouse’s jewelry and the metals in the home”? Well, the first thing that would happen is the one without the jewelry would no longer be the ruler of her castle. And the one who horded the metals would have the upper hand. Also, I believe the house would be gutted for every piece of Aluminum, copper, brass, while the computers and other forms of digital entertainment would be smashed, so as to sequester the new wealth. Goodbye ruler; hello dictator. He, who has the gold, makes the rules would be the new motto of the home.
I agree a gold backed currency is not the ultimate solution..But for self presevation in the current enviroment only a fool would not hold physical gold and silver.
Thing is with a resource based economy same as gold he who holds the resource makes the rules. We would still be debt slaves to the bankers.
but we all hold the resources. and those that don't will learn to innovate. that would be their incentive to produce. besides, I just used resources to counter gold standards
The only resource i hold is my time and a few tools...The corporations hold the ones that make a difference like Land, oil, mines and the like. I am confused by your comment.
without labor, consumption and ingenuity of the common person, those resources are just trinkets to be admired.
They are also nessacary for the survival of most people..Especially city dwellers.
that is just because we are still in a recession and not a depression. once more people are unable to do the three things, labor, consumption and ingenuity of the common person, those City dwellers will begin to see their trinkets diminish.
Gold-backed money. Get your facts straight. Ever since the US went off the gold standard, our currency has been severely devalued thanks to the convenience of the Fed running the presses non-stop... NOT a conspiracy theory, BTW.
devaluing money is synonymous with a pressure valve on a water heater. the ones with all the money should be investing in america as to counter the fed's actions. but they are too scared to think rationally. no?
Money will always go where it is most efficient.
you do understand that the banks, who borrowed Americans money, will eventually lose their profits if the money devalues faster than compound interest accumulates.
yea, and the fed, in the long run and under good management, makes money efficient, or then it would be no different than gold.
Sorry, I meant investor money goes where it is most efficient. The Fed is a big, dumb hammer.
i like the pressure valve analogy better. that means the little man can stop the fire and the middle man can stop the water. tax redistribution equals fire and job creation equals water.