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 Replies: 44 / Views: 4,575 |
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Pillar of the Community
United States
1601 Posts |
First, let me say that I for one cannot wait until we can have President Trump on an actual legal tender coin! It would be a Beautiful thing! Maybe a Two Cent Piece or a zinc cent without the copper. Just a couple years. In the meantime, here's what he had to say regarding a return to the gold standard: http://www.coinworld.com/news/preci...ciousMetals#
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Pillar of the Community
Australia
7096 Posts |
There probably isn't enough physical gold Worldwide to cover the amount of Money that has been printed by the US.
So a return to the Gold standard is either a pipe dream or the US dollar would have to be devalued dramatically to match the amount of Gold that the US actually has on hand.
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Valued Member
United States
343 Posts |
I'd prefer that over it being backed by nothing.
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Pillar of the Community
Russian Federation
5172 Posts |
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I'd prefer that over it being backed by nothing. The prices are probably still going to go back up, though. So in effect you'd basically earn a hundred times less than whatever you used to earn, but I guess at least it will actually be real money. What is somewhat more likely is that the government will officially declare dollars to be exchangeable for gold... at $50,000 per ounce. (I'm lowballing it a bit, the fair amount would be a bit higher.) In other words, you pay 50,000 dollars, you get an ounce of official government gold. Hardly anybody is going to actually go for it (maybe a bit more if they make nice 1/1000 oz bars and sell them for $50 each), but that's the point, obviously. |
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Pillar of the Community
Australia
7096 Posts |
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First, let me say that I for one cannot wait until we can have President Trump on an actual legal tender coin As only dead presidents are permitted on US currency That would be a bad thing. I don't particularly like the Bloke But I wouldn't wish him dead. |
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Pillar of the Community
United States
6130 Posts |
The modern US dollar is backed by the "full faith and credit" of the nation; e.g. the country's entire economy.
Switching back might have been feasible in the late 70s or early 80s, but we are in far too deep; there isn't enough gold to cover the trillions of dollars in circulation, and if we try to "revalue" the dollar, it would be catastrophic. The US currently owns about $11 billion (book value) in gold, compared to an $18 trillion economy. Prices have increased about twenty fold since the US had "hard" currency (1920s and 30s), but to adjust the 2017 USD to the 2017 gold reserves, we would have to make every dollar worth about 0.06% of its current value.
We are in too deep to turn back now.
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Pillar of the Community
United States
1963 Posts |
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First, let me say that I for one cannot wait until we can have President Trump on an actual legal tender coin! First, that's about the same as wishing the president dead.  |
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Pillar of the Community
United States
3469 Posts |
If you were a billionaire, how much of your wealth would you have in gold/platinum/silver?
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Rest in Peace
United States
17900 Posts |
My king size bed would be very, very firm.
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Bedrock of the Community
United States
10038 Posts |
Personally I don't have a problem with a devaluation so there is enough gold to cover the printed money. Using silver might also help. But this is from a non-researched perspective also. Hey, we live in a fictional world of buying and selling with items not physically worth anything anyway! Fact can be stranger than fiction. I don't believe I would have a problem with paying/earning a newly designed 10.00 bill worth something that used to cost the old 100.00. To me its just a decimal point moving. And when we were on the gold standard, inflation was a LOT slower. However, trying to move back to a PM basis was tried before (red seal notes in the early 60s). Coincidence or not, the ultimate tragic ending resulted for those involved in this pushing against the unlimited power the Fed had/has by being able to print fiat money. Even in recent years The person making the NORFED Dollars was illegaly raided by the FBI - (their admission now), wrongly charged with counterfeiting on a bogus basis, was never sentenced, etc., while doing the exact same thing many others in this country were/are doing at the same time he started up. In fact someone else bought his designs and actually made the same design he did (changed a few words on the medal), yet the effigy is what the court case said made it possible for the original ones to be mistaken as "real!" Why was the NORFED guy targeted? He was trying to get people to see why we need a PM standard. Out of many others doing the same, NORFED dollars were becoming popular enough the Fed saw them as a threat and wanted to stop him. The illegal FBI raid and false propaganda spread then scared people who were using the NORFED dollars into thinking their NORFED silver might be confiscated. The FBI even told ebay they needed to stop allowing auctions of them. People were told it was illegal to spend them. The Fed takes their unlimited power very seriously. |
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Valued Member
United States
343 Posts |
darn Earle. You might be on the list now.
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Pillar of the Community
United States
1000 Posts |
x2 on what Coin said. I do not believe any living person has been on American coinage or currency. Here's an excerpt from the wikipedia article on the Presidential dollars: "The act specifies that for a former president to be honored, they must have been deceased for at least two years before issue." |
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Valued Member
United States
112 Posts |
The path to hard money usually starts with war or calamity.
Then comes loss of confidence in the currency and hyper-inflation.
Barter and Mass starvation usually follows.
Then the adults have to step up and back the money with something real
to restore confidence in the currency.
(See Venezuela for a primer on collapse...)
Our metals are an insurance policy against having to experience this.
Silver will keep one fed, gold will help one change location if need be.
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Pillar of the Community
United States
677 Posts |
Since the OP mentioned "just two years" in his post, I'm thinking he knows darn well what the coinage rules are. Doesn't matter what your politics are, wishing someone dead is pretty extreme...whether joking or not.
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Bedrock of the Community
United States
17884 Posts |
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As only dead presidents are permitted on US currency On the currency yes, on the coinage no. A living person CAN appear on the coinage unless the law authorizing that coins specifies otherwise. That's why we didn't get living persons on the President dollar, the State Quarters or the ATB Quarters, the authorizations specifically said they could not appear. If Nancy Reagan had lived a few more months she WOULD have appeared as a living person (I believe she would have been the sixth.) on the first spouse coin because that was NOT forbidden. There is no general law forbidding the depiction of a living person on the coinage. There IS a general law forbidding them to appear on the currency. Quote:
x2 on what Coin said. I do not believe any living person has been on American coinage or currency. On the early paper currency many living persons were, basically the President, Civil War Generals, and high government officials. What ended it was when the third issue of fractional currency was issued the 5 cent note was to depict "Lewis and Clark". The Chief clerk at what was then the predecessor to the BEP, Spencer Clark had HIS portrait put on it instead of the explorer William Clark. (After all the legislation just said Lewis and Clark, it didn't say which Clark.) That got Congress all worked up, how dare a lowly clerk have HIS portrait put on the money! So the passed legislation forbidding the appearance of a living person on the CURRENCY. Now it is important to know that when the Congress writes laws dealing with paper money they specify currency, if they are dealing with coins they specify coinage, they do not use the term currency to mean both paper and coins. On the coinage, there have been living persons shown. T E Kirby, Governor of Alabama. Calvin Coolidge, President of the US. Joseph T Robinson, Senator of Arkansas. Carter Glass, Senator of Virginia. Eunice Shriver, sister of John F Kennedy. And as I said earlier if Nancy Reagan had lived a few months longer she would have been the sixth. Quote:
Switching back might have been feasible in the late 70s or early 80s, but we are in far too deep; there isn't enough gold to cover the trillions of dollars in circulation, and if we try to "revalue" the dollar, it would be catastrophic. As to going back on the gold standard if you did a 1:100 revaluation of the 1.5 trillion dollars in circulation and then backed it with gold at $20 an oz it would take 26,000 tons of gold, If you did fractional backing of 25 cent in gold for every dollar in face value it would take about 6,400 tons of gold. Currently the US owns just a little under 9,000 tons of gold. So it is doable. Not sure I would recommend doing it. Edited by Conder101
02/02/2017 2:45 pm
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Pillar of the Community
Australia
7096 Posts |
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As to going back on the gold standard if you did a 1:100 revaluation of the 1.5 trillion dollars in circulation and then backed it with gold at $20 an oz it would take 26,000 tons of gold, If you did fractional backing of 25 cent in gold for every dollar in face value it would take about 6,400 tons of gold. Currently the US owns just a little under 9,000 tons of gold. So it is doable. So what you are saying is if the gold standard was reintroduced using the formula above the US dollar probably would have the same buying power of a Zimbabwe Dollar. Edited by trout1105
02/02/2017 2:54 pm
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Replies: 44 / Views: 4,575 |
Posted 02/02/2017 09:30 am
