The Gold Standard

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  • Fri, Apr 10, 2009 - 01:08am

    #1
    EconomicsHelp

    EconomicsHelp

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    The Gold Standard

THE GOLD STANDARD: WHERE IS THE STANDARD NOW?

  • Fri, Apr 10, 2009 - 11:28am

    #2
    Peak Prosperity Admin

    Peak Prosperity Admin

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    Re: The Gold Standard

 

No country is on a gold standard….. 

USA dropped off it domestically in 1933 having being caught printing more money than they had gold to back it,

and internationally in 1971  ? , caught yet again printing more money than they had gold.

Untill it becomes a capital offence to print more money than the gold in the vault, those who control the presses will print and print and print………..

 

Cheers Hamish

  • Wed, Dec 01, 2010 - 10:53pm

    #3
    Peak Prosperity Admin

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    Re: The Gold Standard

If we still had the gold standard, we would have had one system crash already 2 decades ago.

Ressource based money is even worse than fiat money when there exists interest.

It will collapse more often than a fiat money system. Cause compounding demands growth no matter wether you deal with coins or paper.

I think thats why the gold standard has been removed finally, cause compounding gold/ a limited ressource is just nonsense.

Though to compound book money (debt based money) = a claim on money -> claim on future labor is nonsense aswell but way more dureable.

  • Thu, Dec 02, 2010 - 07:26pm

    #4
    Peak Prosperity Admin

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    Re: The Gold Standard

The gold standard ended after World War 1   

US Treasury bonds were payable in US currency which were in turn redeemable in gold (Federal Reserve notes had 40% gold backing then).

This link to gold limited the amount of debt the federal government could issue and continuosly exposed banks to bank runs.  By 1933 the final solution was to remove gold from circulating as money (Executive Order 6102) and surrendered to the Federal Reserve.  The following year, all gold holdings of the Federal Reserve was then titled to the US Treasury Department (Gold Reserve Act)

FDR wanted to fund his New Deal and the banks wanted to continue their lucrative fractional reserve banking while limiting their exposure to bank runs.      Gold stood in the way.

 

 

  • Thu, Nov 10, 2011 - 04:06pm

    #5
    Peak Prosperity Admin

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    40 years is up

[quote=EconomicsHelp]

THE GOLD STANDARD: WHERE IS THE STANDARD NOW?

[/quote]

 

President Nixon took us off the gold standard altogether in spring 1971. The economy today is the aftermath of 40 years of fiat monetary money. Some economist say that the life span of a fiat monetary system is on average around 40 years.

  • Mon, Aug 06, 2012 - 08:18am

    #6
    treadstone

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    Memo proofs Gold Price Manipulation by Federal Reserve

Fed officials actually have a close eye on gold:

  • Sun, Aug 19, 2012 - 02:20pm

    #7

    ralfy

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    A gold standard stands in the

A gold standard stands in the way of a global capitalist system, especially given the lack of gold and the point that one can have one’s dollars redeemed.

 

  • Sun, Aug 19, 2012 - 09:16pm

    #8

    gyrogearloose

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    Standing in the way ???

Redeemed for what ?

And a lack of gold ?   How much gold per person is enough, a gram, a kilogram,

or does every one have a tonn of gold …!!!

 

Cheers Hamish

  • Sun, Aug 26, 2012 - 03:39pm

    #9

    ralfy

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    gyrogearloose wrote:Redeemed

gyrogearloose wrote:

Redeemed for what ?

And a lack of gold ?   How much gold per person is enough, a gram, a kilogram,

or does every one have a tonn of gold …!!!

 

Cheers Hamish

There are only around 150,000 metric tons of gold worldwide, or equivalent to less than one troy oz per capita. Even if we double that number, we will end up with less than two troy oz per person.

A gold standard means that any paper currency used is backed by gold. That’s your assurance that your paper currency stands for something. That also means that you can have your paper currency exchanged for gold if you want.

The second was one of the reasons why the U.S. dropped the gold standard, as some countries were slowly having their dollars exchanged for gold.

 

  • Wed, Aug 29, 2012 - 01:06pm

    #10

    gyrogearloose

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    Paper currency stands for something ?

A govenerments assurance that a paper currency is backed by gold has been shown repetadly to be a hollow one.

This is a fairly good paper on gold standards.

You said “you can have your paper currency exchanged for gold if you want” ….. Histroy has shown that this only holds untill enough people work out that the govenrment is debasing the currency and want to swap their soon to be worthless slips of paper for something that has retained value for all of recorded history.

Goverernments hate being fiscally responsable and so hate a “pure 100% gold and silver standard” ( as defined in the above paper )

from wikiJohn Maynard Keynes, who had argued against such a gold standard, proposed to put the power to print money in the hands of the privately owned Bank of England. Keynes, in warning about the menaces of inflation, said, “By a continuous process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method, they not only confiscate, but they confiscate arbitrarily; and while the process impoverishes many, it actually enriches some””   

(P.S. re wiki on gold  standards. I object to much of what wiki says, an example being  in its explanation of  the 100% reserve gold standard under disadvantages it says “Deflation punishes debtors…..Lenders become wealthier”…. I consider that an advantage not  disadvantage ! )

 

As to there not being enough gold at only 1 oz per capita how many dollars per capita is the right amount…..  1  or  $1000 or   or $10000000000000000000000000000000000 smiley

And according to you “A gold standard stands in the way of a global capitalist system”

But fait money systems give the government the power to create inflation at will.

So you are in favour of giving the government the power to do as Keynes warned ????????!!!!!!!!

 

Sorry. Can’t agree. I want to keep my hard earned wealth.

 

Cheers Hamish

P.S. Essentially the only difference between gold as money and fait money is it is hard to print more gold…….

 

 

 

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