Gold Standard possible?

[joejim]

Hi everyone. I was wondering if it really is possible to have a currency backed by gold. Is there enough gold to back the amount of money that is needed in this country?

And then I found this posting somewhere on the internet. Can someone answer this too?

"But it's not like gold has any real value. It, like a floating currency, it simply worth whatever someone wants to pay for an ounce of gold. Gold is just a shiny rock, and its value floats daily, just as the value of a dollar floats daily. It trades on the commodities market like pork bellies, (though, like petroleum, its price is not set by supply-and-demand, but rather by international bureaucracies and political currency), doesn't that make it a crummy benchmark?

I mean, we can't control its production, we don't control its value, we don't control its supply. What is different between that and any other commodity? Why not use a silver standard? Corn standard? Unleaded standard? Paperclip standard? They're not worth any more than someone is willing to offer, either."

 

[Cimbri]

The Constitution is clear on this the dollar is worth 1/20 of an ounce of gold even though they won't report MZM or M3 anymore it is estimated that 30,000 dollars are in circulation for every ounce of gold. That gives gold a current Constitutional value of $1500 in relation to the money supply and the press keeps running.

Current gold price:

$900.60

 

[nodope0695]

The most important factor about curency backed by gold, IMHO, is that the amount of gold there is LIMITS the amount of curency that can be printed, hence a stable monetary system that has REAL value. One Dollar would actually translate into a material amount of gold.

Paper money, when it was backed by gold, or silver, was kind of like a check. It could be exchanged for actual gold/silver. For a time our money was backed by silver - the old "Silver Certificate". A person could go and exchange that note for silver.

Today our money is only worth what one can buy with it. Its value has no substance, and is determined by how much of it there is, not by what is backing it up. Just as it is with any comodity, the more of it there is, the less it it worth. Supply and demand.

Mind you, I'm NOT an econimist, so I might be a little off in my theory, so don't take my word for it. Research the internet. If I'm off base, I welcome others to correct what I've said.

 

[pacelli]

The Constitution is clear on this the dollar is worth 1/20 of an ounce of gold even though they won't report MZM or M3 anymore it is estimated that 30,000 dollars are in circulation for every ounce of gold. That gives gold a current Constitutional value of $1500 in relation to the money supply and the press keeps running.

Current gold price:

$900.60

Spot on accurate. Nicely done!

 

[Airborn]

what you also got to understand is IF we were completely backed by gold prices would go down, meaning a dollar worth in gold would be actually be worth a penny in gold by today's standard. Not actually figures just saying..

 

[Kotin]

it is eventually, Dr.Paul will first introduce competing currencies, making it legal to trade in gold and silver etc.

then we will slowly wean the country off the federal reserve and central banking systems.

 

[oilboiler]

Just read this speech by the good doctor himself to understand the evils of a fiat money system. From 2003.

Paper Money and Tyranny
http://www.house.gov/paul/congrec/congrec2003/cr090503.htm

By the way, fiat systems have been tried many times in history and they always collapse. Always, no exceptions. The longest any have ever lasted is about 50 years.

We went off gold in 1971. So Paul is trying to get us to think about what to do when this one collapses, as it will.