Bring Back the 'Gold' Standard

Discussion in 'Economy' started by JimJones, May 27, 2009.

  1. JimJones
    Offline

    JimJones Member

    Joined:
    May 21, 2009
    Messages:
    57
    Thanks Received:
    16
    Trophy Points:
    6
    Location:
    Tampa,Fl
    Ratings:
    +16
    In 1908 Congress reacted to a panic and established the National Monetary Commission. Shortly after, a few rich bankers with last names of Rockefeller and Morgan along with a few others, got together and created the Federal Reserve Bank. Monetary Commission supported the Federal Reserve Act of 1913, which Congress approved.

    "If the American people ever allow private banks to control the issue of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered."
    —Thomas Jefferson (1816)

    As you know, the U.S. dollar is losing value by the day. Our dollar is feeling the affects of the past 20-30 years. However, having Bush and Obama spend like its monopoly money, doesn’t help things. This problem is growing by the day, as we are currently borrowing .50 cents on every dollar we spend. Didn’t we learn anything from Roosevelt? The inflation storm is on the way. At some point we will max out our credit line and the Federal Reserve Bank will start printing more money. At some point, either we pay the high price of our elected President’s spending habits or we leave a ton of inflations to our kids, and grand kids. How did Jefferson know?

    Once we had a monetary ‘gold’ standard that had every dollar backed by gold, which is how it’s written in our constitution. There is a movement to bring back the gold standard. The one question I would like answered is do we have any gold left in Fort Knox?

    Austrian Economist Ludwig von Mises proposed the following process of monetary reform:
    1. The Federal budget must be balanced and the government prevented from spending more money than it makes in taxes.

    2. Total prohibition on the issuance of any additional money and credit by the Central Monetary Authority.

    3. A 100% reserve requirement on all future deposits in the banking system.

    4. The Federal government must be divorced from the monetary system.

    5. All outstanding U.S. bonds must be redeemed.

    6. A ratio will be established determining the set value of gold equivalent to one dollar.

    7. The government will not be able to print additional money.

    8. The Federal Reserve unable to perform monetary policy will become a figurehead and merged with the Treasury agency to maintain strict enforcement of the new currency.

    The Federal Reserve can’t be regulated. There is no oversight and there is zero transparency. The million or should I say Trillion dollar question is, who or what company has controlling interest of the Federal Reserve?

    -JimJones
    www*BorderlineIQ*com
     
  2. Megatrend
    Offline

    Megatrend Rookie

    Joined:
    May 26, 2009
    Messages:
    12
    Thanks Received:
    2
    Trophy Points:
    1
    Location:
    BERRRRWYN!
    Ratings:
    +2
    Balancing the budget and buying back all bonds seems like a mutually exclusive arrangement. Also, with the massive programs like bailouts and proposed health care for all, it doesn't look like we're balancing anything anytime soon without a huge increase in taxes.
     
  3. Kevin_Kennedy
    Offline

    Kevin_Kennedy Defend Liberty

    Joined:
    Aug 27, 2008
    Messages:
    17,590
    Thanks Received:
    1,581
    Trophy Points:
    205
    Location:
    Ohio
    Ratings:
    +2,027
    Agreed. We need a return to sound money.
     
    • Thank You! Thank You! x 1
  4. Paulie
    Offline

    Paulie Platinum Member

    Joined:
    May 19, 2007
    Messages:
    31,527
    Thanks Received:
    4,848
    Trophy Points:
    1,130
    Ratings:
    +15,358
    How could you name only one?

    Goldman Sachs would be at the top of my list.
     
  5. Richard-H
    Offline

    Richard-H Gold Member

    Joined:
    Aug 19, 2008
    Messages:
    2,285
    Thanks Received:
    385
    Trophy Points:
    130
    Ratings:
    +510
    What I would like to know is, what is so special about gold as compared to all other comodities? Why not base our monetary policies on soy beans? Energy would be the best standard, if there had to be a single commodity.

    Gold was the standard because gold was rare and everyone valued it. But the only reason it was valued was because it is very mallable and you can make all sorts of pretty things with it. It's value is based on silly primitivism.

    Nowadays, gold is not rare, neither are diamonds. They're production is carefully controlled to prevent the market from getting flooded.

    I believe that the total wealth of the world is equal to the total amount of physical items produced. Deflation & inflation are just a balance between the amount of currency in circulation vs. the amount of goods in existance at the time.
     
  6. Kevin_Kennedy
    Offline

    Kevin_Kennedy Defend Liberty

    Joined:
    Aug 27, 2008
    Messages:
    17,590
    Thanks Received:
    1,581
    Trophy Points:
    205
    Location:
    Ohio
    Ratings:
    +2,027
    Gold and silver have always been the commodity chosen, for one reason or another. Though you're right that anything of value could be the commodity. The market would decide what it prefers and go with that.
     
  7. Oddball
    Offline

    Oddball BANNED Supporting Member

    Joined:
    Jan 3, 2009
    Messages:
    41,428
    Thanks Received:
    8,397
    Trophy Points:
    0
    Location:
    Drinking wine, eating cheese, catching rays
    Ratings:
    +8,409
    It's the most non-perishable and portable commodity of them all.

    Also, if you held some notes for a given amount of Saudi oil, some might turn that down for political or whatever reasons....Nobody in their right mind is going to turn down specie.
     
  8. Megatrend
    Offline

    Megatrend Rookie

    Joined:
    May 26, 2009
    Messages:
    12
    Thanks Received:
    2
    Trophy Points:
    1
    Location:
    BERRRRWYN!
    Ratings:
    +2
    It's not the rarity of commodity but rather it's stability that's important. Oil, for instance, is an important commodity but it is neither valuable nor stable.

    Gold might not be very rare anymore, but I still think it represents the idea of money more than any other commodity.
     
    • Thank You! Thank You! x 1
  9. Oddball
    Offline

    Oddball BANNED Supporting Member

    Joined:
    Jan 3, 2009
    Messages:
    41,428
    Thanks Received:
    8,397
    Trophy Points:
    0
    Location:
    Drinking wine, eating cheese, catching rays
    Ratings:
    +8,409
    Is that Atlas, from IH???
     
  10. Paulie
    Offline

    Paulie Platinum Member

    Joined:
    May 19, 2007
    Messages:
    31,527
    Thanks Received:
    4,848
    Trophy Points:
    1,130
    Ratings:
    +15,358
    Can people carry little bits and pieces of "energy" around with them in their pockets to make transactions? Can we practically carry soy beans around with us? That would get disgusting after a while.

    Gold worked because it could be melted down and shaped into coinage and other bullion. It's perfect.
     

Share This Page