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 Replies: 28 / Views: 2,702 |
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Bedrock of the Community
United States
14454 Posts |
Looks like everything dropped back down a little today
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Valued Member
United States
451 Posts |
Long long time ago there was a gold standard and all countries only printed as money as gold they had. In the 1970's the gold standard was dropped. At that time all currencies were free floating and their price was directly proportional to the demand of the currency. US made sure the demand for US dollars was high by entering into pacts with middle-eastern countries to make sure oil is traded only in US dollars. Every country in the world had to buy dollars in order to buy oil and that kept the demand for dollar high and the buying power of dollar also high. A lot of countries started buying dollars and US dollars became world's reserve currency. Even China's policy to hoard US dollars and buy US treasury bonds have hugely contributed to the demand of the dollar. With the raise of Euro, raise of US trade deficits, US economic woes et all the world lost it's trust in the US dollar and naturally gold and silver became safer instruments to hold as reserve currencies. There are rumors that there might be a new gold standard that might be introduced. http://www.prisonplanet.com/zoellic...d-price.htmlhttp://money.cnn.com/2010/11/10/new...ld_standard/Unless we get into touch with a bunch of friendly aliens and start using Unobtainium or Vulcan dollars as a standard currency, the world needs a stable reserve currency or international monetary mechanism that stabilizes the way countries trade with each other. Enough with all the economics, history and aliens. What should we do now? In my humble opinion, DIVERSIFY! Don't put all your eggs in the same basket. Hold your money in cash, stocks, bullion and land. If one of them were to fail you got it covered with others. |
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Pillar of the Community
United States
2424 Posts |
back to the gold standard. I bet that is one option they are discussing at the G-20 summit in Seol.
it only makes sense - every country currently recognizes gold as wealth. and not far off we will see the USD being used for heating the house
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Bedrock of the Community
United States
14454 Posts |
yeah we have a better chance of the aliens landing and teaching us how to teleport from one place to another using nothing but our minds than us ever going back on the Gold standard
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Pillar of the Community
 United States
1450 Posts |
Somebody on CNBC yesterday,when the gold standard discussion came up,said he ran the calculation based on US gold supply and US money supply. Based on those two numbers ,if we went on the gold standard today,gold would be $33,000/ounce. See what happens when there is nothing to control money value?
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Valued Member
United States
451 Posts |
Going back to 100% gold standard will be a disaster with everyone rushing to hoard gold. Gold being a component of the new monetary policy is more achievable IMHO and should be done over a period of time.
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Pillar of the Community
United States
1450 Posts |
I figure we will see a metal-backed worldwide monetary system in the near future. Gold,silver and probably copper will be used as a basket of metals to measure currencies against. My fear is that ownership of precious metals at that time will be illegal for individuals. Just a thought and a concern.
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Moderator
 United States
188952 Posts |
Quote:
Going back to 100% gold standard will be a disaster with everyone rushing to hoard gold. Gold being a component of the new monetary policy is more achievable IMHO and should be done over a period of time. I agree. The gold standard will never happen again. It cannot happen again because it is mathematically and logistically impossible, given the size of the economy today. However, hard currency is not a myth. A commodity backed standard that included gold as a component is feasible. |
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Valued Member
United States
364 Posts |
I think you'll have to get back to something that forces these irresponsible treasuries around the world to quit trying to manipulate the currency market and treating fiat currency like a tool to attempt making themselves more competitive. When you have the two biggest powers in the world jockeying back and forth with currency values, leading to tensions between the two, then you are looking at the end result of having ever allowed said treasuries so much power.
Of course, I want to abolish the federal reserve anyway. All it is an enablement device for government irresponsibility. Bernanke and his ilk are government patsies pretending their strings aren't being pulled.
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Moderator
United States
188952 Posts |
Quote:
All it is an enablement device for government irresponsibility More accurately, it is an enablement device for government and major banking irresponsibility. Remember, the Federal Reserve is a quasi-public organization with alleged congressional oversight, but the truth is that the major banks usually call the shots. |
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Bedrock of the Community
Australia
21788 Posts |
Given the volatility of bullion prices in the last 15 years or so, and the burgeoning U.S. debt problem, I would see that going back on the gold standard, (and I have said this before), would be the financial equivalent of grabbing an enraged bull by the tail.
The U.S. share at least one problem in common.
That is that our manufacturing jobs have been exported, mainly to China, by our own home companies. The only reason Oz. is in better shape than the U.S. is because of our huge mineral exports. And the Chinese are in intense and very patient negotiations to own the mining companies that operate in Oz.
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Pillar of the Community
United States
1450 Posts |
sel691,speaking of Oz mineral resources,what has happened to the opal exports? I go to quite a few mineral and gem shows and even 2 years ago there was a lot of great Australian Opal around. The last couple of shows I was lucky to see a dozen decent pieces and very few great Lightning Ridge or Mintabe pieces. Any idea what is going on in the opal mining areas? |
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Pillar of the Community
Canada
3692 Posts |
Why can't government hand out money based on the work and services done? Example, wheat farmers get a "wheat" standard and all types of these commodity currencies circulate at once and are backed by their industry's sector's product. I'm talking out of my
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Replies: 28 / Views: 2,702 |
First Page
Posted 11/10/2010 2:00 pm
