How do you back 7t cash with 4t gold
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pdavis
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When America was experiencing excessive inflation due to the increase in the quantity of Continental dollars, how did America transition to a silver standard? When Germany was experiencing hyperinflation in 1923, how did they transition back to a gold standard?
lastnymleft
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A re-rating of the gold price is imminent, regardless of Dr Paul wanting to move us back on to the gold standard, for two reasons:
(1) The fiat system is unsustainable, and close to collapsing. When it does, the price of gold will skyrocket, anyway. I'm expecting to wake up one morning to find gold is in the several thousand per ounce region.
(2) The gold price has been manipulated for years (mostly, suppressed). There was a Canadian hedge fund manager proved as much a few years back, though it's been known for some time: http://www.sprott.com/pdf/not_free_not_fair.pdf When (1) happens, it will be such a tsunami that not even the central bank and international banker manipulators will be able to keep gold's price down.
Prior to entering into Establishment, Alan Greenspan was in favor of going back onto the gold standard. I think he even wrote a book on it in the '60s. Now that he has retired from the Establishment, he's moving back towards open support for the gold-standard.
Steve Forbes also supported it openly on Kudrow & Company. This is not a whacky idea.
Disclaimer: I hold gold. As much as possible.
(1) The fiat system is unsustainable, and close to collapsing. When it does, the price of gold will skyrocket, anyway. I'm expecting to wake up one morning to find gold is in the several thousand per ounce region.
(2) The gold price has been manipulated for years (mostly, suppressed). There was a Canadian hedge fund manager proved as much a few years back, though it's been known for some time: http://www.sprott.com/pdf/not_free_not_fair.pdf When (1) happens, it will be such a tsunami that not even the central bank and international banker manipulators will be able to keep gold's price down.
Prior to entering into Establishment, Alan Greenspan was in favor of going back onto the gold standard. I think he even wrote a book on it in the '60s. Now that he has retired from the Establishment, he's moving back towards open support for the gold-standard.
Steve Forbes also supported it openly on Kudrow & Company. This is not a whacky idea.
Disclaimer: I hold gold. As much as possible.
jon_perez
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You can't. However, another question needs to be asked:
Does it make sense to equate the enormous amount of wealth in today's civilization with just USD4T worth of gold?
This would arbitrarily make current holders of gold rich beyond measure.
.
Does it make sense to equate the enormous amount of wealth in today's civilization with just USD4T worth of gold?
This would arbitrarily make current holders of gold rich beyond measure.
.
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williameis
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it should be done in CPI baskets, not gold or silver
Only after the constitution is changed. Until then we are in violation of the constitution.
Personally I think it should not be done in CPI baskets, but rather commodity baskets. The CPI and many other indexes have finished goods. However, I'd like commodity-backed currencies should focus on raw materials. Oil, Wheat, Copper, etc.
truthbetold
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The U.S. debt is based on a fraud and a Amendment that was never ratified as proven in many court cases. It is an illegal debt.
IT DOES NOT NEED TO BE PAID BACK. IT IS ONLY PAPER ANYWAY...
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
http://www.mises.org/store/Case-for-a-100-Percent-Gold-Dollar-The-P64C1.aspx
read this book by Rothbard and you will understand
read this book by Rothbard and you will understand
I consider my blog to be a good resource. I made an IMHO good post on Ron Paul and the gold standard recently.
http://fskrealityguide.blogspot.com/2007/11/ron-paul-federal-reserve-and-gold.html
Revolution9
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You can leverage gold to seven times its value. Ergo that 4T turns into 28T in ledger entries and the system remains stable as it is built into it already.
Best
Randy
jon_perez
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LOL! That sounds exactly like the fractional reserve banking that conspiracy theorists like you rail against...
jon_perez
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"leverage" here is just code word for fractional lending (and other similar practices).
In other words, you seem to be saying that in a "truly free market", the goldsmiths should be able to lend out "gold-backed" notes and back it with as small a fractional equivalent as they please with no government to oversee them. The libertarian line being that their so-called counterparties can hire 'private' auditors to make sure they don't abuse this concept too much.
The difference I suppose is that in the mythical days of yore [as presented by your friendly neighborhood conspiracy theorist], people did not realize that their gold was being lent out with only fractional reserves to back it up. Nowadays, people are [supposed to be] smarter and are expected to demand more transparency, so the reasoning goes that they will not patronize a "private money provider" whose practices they do not find satisfactory.
Of course there is nothing really new to this story or scenario. Such "free banking" would be presumably more or less how the US operated before the Fed was created. There seems to have been a sufficient number of bank runs, failures and instances of outright fraudulent banking practices back then such that the clamour for the creation of the Fed as regulatory body and insurance provider succeeded (revisionist history notwithstanding).
My own subjective feeling is that the US economic system is indeed being burdened and restrained by far too many regulations introduced by disingenuous politicians with a statist/socialist (I admit to being brainwashed enough to consider these bad words) agenda... and thus the swing of the pendulum towards a more libertarian mindset is largely justified.
But on the other hand, while all this talk about moving to private money and a more laissez faire system is interesting, people should really brush up on their history and not just swallow the most recent conspiracy fad. I have noticed that the latter tends to be bolstered by one-sided and sometimes (often?) dubious historical facts.
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Hey, I'm surprised no one brought up the feasibility of creating platinum coins. Copper is scarce these days, otherwise I'd suggest it.
At Kitco.com they allow for shares in a "pool" of gold. I sold my shares, and was reimbursed in gold coin. Doubled my money in two years! Which pretty much means we're suffering hyperinflation NOW, not jjust some time in the near future.
At Kitco.com they allow for shares in a "pool" of gold. I sold my shares, and was reimbursed in gold coin. Doubled my money in two years! Which pretty much means we're suffering hyperinflation NOW, not jjust some time in the near future.
The idea that "free banking" didn't work out is itself revisionist history, according to some sources. There never was truly free banking. There always was some form of government regulation and interference.
The problem is that, in 1787, when the USA was founded, the European central banks had a near monopoly on the worldwide gold supply. When the USA adopted a gold standard, it was like they handed the keys to their monetary system to the European central banks.
The problem is that, in 1787, when the USA was founded, the European central banks had a near monopoly on the worldwide gold supply. When the USA adopted a gold standard, it was like they handed the keys to their monetary system to the European central banks.
JosephTheLibertarian
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If there is 7 trillion dollars in cash floating around, how do you replace it with gold (current world supply is around 4 trillion)? I know the answer is that you use gold, silver, oil credits, subprime mortgages, diamonds, etc... but I just see logistical problems in trying to make the switch off of a fiat system. It seems like it would take many decades (assuming very competitive and efficient private banks get into it).
Why not just leave it to the people? No national currency
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