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 Replies: 26 / Views: 3,587 |
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Pillar of the Community
United States
4897 Posts |
I'll probably get lambasted.....How does the push to return to a (Price controlled by the Gubmint) Gold standard helps the situation. Allowing the politicians to set the value of gold seems downright anti-free market to me. Just a different way of giving up control of our fiduciary system. Also is there an historical example of demonetizing actually working? Maybe I'm not getting it but it seems hyperinflation is what would need to happen to reinstate the gold standard?
Ignorantly yours....
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Valued Member
Canada
178 Posts |
Well, there's all this talk lately of mining asteroids, and that some might be full of precious metals. All you need is a big asteroid coming by Earth loaded with gold! Then you might be able to make a gold standard work.
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Moderator
 United States
23522 Posts |
Hehehe. That would swerve things a bit.  |
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Pillar of the Community
United States
1109 Posts |
Quote:
I'll probably get lambasted.....How does the push to return to a (Price controlled by the Gubmint) Gold standard helps the situation. Allowing the politicians to set the value of gold seems downright anti-free market to me. Just a different way of giving up control of our fiduciary system. Also is there an historical example of demonetizing actually working? Maybe I'm not getting it but it seems hyperinflation is what would need to happen to reinstate the gold standard? I think the idea is to tie the value of the dollar to the value of gold, not to have the government set the value of gold. |
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Pillar of the Community
United States
589 Posts |
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Also is there an historical example of demonetizing actually working? http://www.dailymail.co.uk/news/art...-decade.htmlIf the government sets an explicit deadline for conversion, and then sticks to its guns, demonitization works. Hyperinflation is the best chance hard money has of seeing a future since right now it's too easy to print money and no government wants to be tied down to having a hard limit. However, should a nation want to return to a gold standard, they'd need to come up with a creative means of massively reducing the money supply, and then demonitize anything left over. And if a nation should return to a gold standard, all other currencies (fiat) would fail (they all will fail, it'd just be quicker). However, a currency that is just "backed" by gold vs one that is "backed" AND "convertible" to gold are two different things, although they are both "gold standards", only the convertible one could quickly decimate world currencies, being just backed by gold would only stabilizes a currency for perpetuation (or until the backing ceases) and is a step in the right direction. And as stated by thehulk, asteroids do contain tons of precious metals: http://news.bbc.co.uk/2/hi/sci/tech/401227.stm "In the 2,900 cubic kms of Eros, there is more aluminium, gold, silver, zinc and other base and precious metals than have ever been excavated in history or indeed, could ever be excavated from the upper layers of the Earth's crust." We know how to break rocks up, so an alternative to mining in space would be to break the asteroid up and bring it down to earth in large (but much smaller) chunks. |
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Pillar of the Community
Canada
2805 Posts |
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a creative means of massively reducing the money supply, and then demonitize anything left over. Yes, and gold will protect us from large-scale government manipulation of the currency. Quote:
And if a nation should return to a gold standard, all other currencies (fiat) would fail (they all will fail, it'd just be quicker). How? Gold bugs are a minority. As far as I can tell, most people wouldn't care. |
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Valued Member
United States
337 Posts |
If the Swiss do pass the gold standard, why would gold suddenly jump? I read above they have five years to acquire the metal, and I suspect a large vault would be needed first. So, why would gold jump in the first week? That's a lot of cans to fill and bury if they do not build a vault, a BIG vault.
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Pillar of the Community
Canada
1751 Posts |
This has been a very interesting read. I didn't realize it's only been 44 yrs since the ending of the gold standard. I'm using the yr 2015 for my calculation. It's interesting only 2 years after going off the gold standard the oil crisis of 1973 began. It does seem people were better off prior to 1971.
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Pillar of the Community
United Kingdom
856 Posts |
Pardon my ignorance but isn't the US Federal Debt around $16 trillion? And all the gold ever mined worth .. around $8 trillion. So it doesn't sound as if there is enough of the stuff to go round. Apart from the fact that the world is a very different place from 1971. The global economy is surly much more a greater influence on every nation's attempts to maintain prosperity and balance the books than ever? Sounds like a recipe for global chaos to me. Which is perhaps why IS seems to be talking of introduce a gold standard http://www.bbc.co.uk/news/world-mid...ast-29600573. |
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Valued Member
 United States
70 Posts |
Many of you had very good points pro and con, the referendum failed. I do find it quite odd that a poll prior to the vote showed 58% for the gold standard, and yet the final vote showed 78% had voted against it, draw your own conclusions. To me personally, this is a great thing, I can continue to stack gold and silver at a sale price, however this sale is going to last only so long.
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Bedrock of the Community
United States
17884 Posts |
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I suspect a large vault would be needed first. That wouldn't take too long. The entire 1500 tons of gold could he contained in a vault with interior dimensions of 18 X 18 X 8 or 14 X 14 X 14 ft |
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Replies: 26 / Views: 3,587 |
First Page
Posted 11/27/2014 1:18 pm
