Complaints with the Gold Standard

[Paulitician]

The argument that an economy cannot expand without inflating the currency, espoused by many, is ludicrous.

Agreed. People need to take the blinders off. Their argument that one needs to expand the money supply to create economic growth and wealth is being disproven right before their very eyes. Just goes to show the great edumacation people are getting from government schools.

 

[SeanEdwards]

Let's use plutonium! Nobody would dare steal it.

Yeah, but your money would have a half-life and would spontaneously decay into something that was not money.

Then there's the problem of carrying around a lead-lined wallet...

 

[AutoDas]

The Gold Standard is still susceptible to the government's demands. They can seize the bank notes in supply or issue more.

Money should only be backed by progress and the private banks are the only ones who can recognize that.

So what if the Constitution says money has to be backed by gold or silver? Platinum is worth more and shinier.

 

[angelatc]

Also the side benefit is that would be one less space rock to slam into the earth. When resources are depleted like Platinum here on earth there will be another space race to get to the NEOs first. My bet is on china or russia, dont know if NASA will have a budget by then.

http://en.wikipedia.org/wiki/Asteroid_mining
http://miningasteroids.com/

If there's money to be made we don't need to fund NASA. Private enterprise will finance itself. The only argument I've ever seen for not defunding NASA is that private enterprise has no interest in deep space, and science would suffer.

 

[angelatc]

The Gold Standard is still susceptible to the government's demands. They can seize the bank notes in supply or issue more.

Money should only be backed by progress and the private banks are the only ones who can recognize that.

So what if the Constitution says money has to be backed by gold or silver? Platinum is worth more and shinier.

So we amend the Constitution. Problem solved.

BUt I thought it was only the States that were limited to gold and silver....

 

[sratiug]

So we amend the Constitution. Problem solved.

BUt I thought it was only the States that were limited to gold and silver....

And since states may only make gold and silver legal tender, and corporations are a state function being that there is no authority to incorporate anything federally, and most banks are corporations, and most transactions happen in states, and all states would have to pay the feds and recieve from the feds gold and silver, what does that leave?

Except the federal reserve, which doesn't actually exist, since no federally chartered corporation can exist. And it wouldn't be able to deal with other banks anyway, unless in gold and silver.

 

[Flirple]

This is the the right answer:

The market decides what to use.

Ideally we would never "devise" a monetary system but rathet let the market dicide through competing currencies. If people want to use different metals or sea shells to back thier currency let them try.

History is is pretty clear though that for a variety of reasons gold and silver have been selected time and again as the money of choice. And if people have concerns that gold is too valuable for small purchases that they would have to carry very small gold coins to buy a gum ball or something remember you can make alloy coins with very low gold content or use silver alloy coins like US coins were before 1965.

 

[AutoDas]

Yes. Currency should be market decided. Money cannot be controlled by the government. I think this is called Free Money akin to Free Market. The USD should be redeemable at private banks for their own money which is based on actual loans and investments that have progressed capitalism. Who better to give your money to then the people that do daily transactions? People will switch to the most reliable bank and their money will be safe their.

 

[Mystile]

isn't the US economy worth more than all the gold in the world anyway?

 

[Banana]

isn't the US economy worth more than all the gold in the world anyway?

On a gold standard, we set a measure of weight and price everything relative to that amount of gold. Therefore, what would cost $1000 to buy with FRNs, would take only one-ounce of gold certificate; the price will drop back to the level in 1900s- you know, when you could buy a handful of candies with a penny.

 

[sratiug]

isn't the US economy worth more than all the gold in the world anyway?

Maybe right now. But when people turn in their paper for gold, the value of gold will increase. Peter Schiff says it may go to 5000 to 10000 dollars an ounce return to past levels relative to the stock market.

Is the economy worth more than all the paper in the world?