A Gold Bank?

Discussion in 'Economy' started by proletarian, Feb 18, 2010.

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  1. ☭proletarian☭
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    I know the States are not allowed to print currency, but is there anything stopping a state from starting a bank dealing with gold and silver stores and issuing gold/silver notes that would be used for transactions like we used to do?
     
  2. CrimsonWhite
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    CrimsonWhite *****istrator Emeritus Supporting Member

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    No law against it. Probably not gonna happen until said state is completely self-sufficient.
     
  3. ☭proletarian☭
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    Maybe that's why the Fed keeps mandating programs that necessitate using 'federal money' that the fed took form the State in the first place?


    Think you could get enough people together to start such a system as a private endeavor? I worry, however, about how the gold price would be effected by such a bank suddenly beginning to accumulate gold and silver. Do you know of this ever being done after the world left the Gold Standard?
     
  4. ReAmericaNow
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    During the era of the gold standard the price was fixed ( lower then market price) by the federal government and it was illegal for citizens to own gold. Actually all citizens had to turn over gold to the FED or suffer a fine. However if we were to have a private endeavor that dealt in the trading of gold, as we had one that dealt in the trading of energy (ENRON) I can’t see any possible problems.
     
  5. ☭proletarian☭
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    It wasn't always like that. When the Fed took Americans' gold by force, we saw the beginning of the end for the American economy.
     
  6. ReAmericaNow
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    Hey I am all for ending the fed, I do not think that a private enterprise should have absolute control over the economy. However, the gold standard is not the way as long as you allow for speculation in the markets. That is why the government froze the price of gold, so individuals, businesses and corporations could not profit off of the people.
     
  7. uscitizen
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    uscitizen Senior Member

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    Lets go to gold backed currency again, that would mean that we have maybe 1 trillion max available in currency.
     
  8. Care4all
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    I think that is unconstitutional because the federal government has the responsibility of creating one unified currency among the states, no?
     
  9. uscitizen
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    uscitizen Senior Member

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    Yeah I think they got that outlawed around 1900 or so.
     
  10. ReAmericaNow
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    Hey a gold standard is a good idea, but we should not engage it until gold returns to its normal price of about $250-$350 per ounce. If we enter into a gold standard before that point, then we truly will become a bankrupted nation.
     
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