Should the US go back to the gold standard??

Discussion in 'Economy' started by Killuminati, Jan 30, 2009.

  1. Killuminati
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    Killuminati Member

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    Should the US go back to backing its money by gold or silver, and kill the fractional banking that is going on now? What are the ups and downs on having a gold and silver standard?? Plz tell me the pros and cons.
     
  2. jodylee
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    jodylee Active Member

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    this would help, but will never happen, unless you over throw the ellite.
     
  3. Skull Pilot
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    Skull Pilot Platinum Member

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  4. Toro
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    Toro Diamond Member

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    No.

    First, there isn't enough gold in the world.

    Second, the world's money supply should not be dependent on the technical advances and profitability of mining companies, which are amongst the worst run companies in the world.
     
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  5. editec
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    editec Mr. Forgot-it-All

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    Well, going onto a gold standard would insure that there wasn't an ounce of Gold in the USA that's for damned sure.

    AFter all, our imbalace of trade would means that the USA would have to ship GOLD to the creditor nations every year to pay for our trade imbalance.

    But going on a gold standard surely would end monetary driven inflation, on that we can agree.

    Of course, monetary DEflation is the inevitable outcome of having a gold standard in a growing economy, so that would wreck our economy, too.

    But hey, since some of you really think our 21st economy can be adaquately described by a 18th century philosopher name Adam Smith, (a man who never studied economics because that dicipline didn't exist, yet) and a man who was discussing the economic systems of a world that was mostly an agrarian economy, I say go for it, Goldbugs.

    You Goldbugs have some of the brightest minds of your century...if your century is the 18th century, I mean.
     
    Last edited: Jan 30, 2009
  6. sealybobo
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    sealybobo Diamond Member

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    Who are you? A rich banker who owns the Federal Reserve? Are you an IRS agent?

    The system we have now is fucked up!

    I'm going to continue reminding people like you just how blind and brainwashed you are. Not your fault. 90% of Americans are just like you.

    But it is time to wake up.

    “If the American people ever allow private banks to control the issue of their currency, first by inflation, 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. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”

    – Thomas Jefferson, Letter to Treasury Secretary Albert Gallatin (1802)

    So you were warned.

    But then the Corporate media's bullshitted/bribed our grandparents into turning over America to the bankers.

    And even the President at the time was shamed that it happened on his watch.

    "I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men." -Woodrow Wilson, after signing the Federal Reserve into existence

    And why don't you take people like this seriously?

    Mayer Amschel Rothschild, quote
    Give me control of a nation's money and I care not who makes the laws.

    So the world banks own America and most of the rest of the world. We can only take America back if you wake up. We need you. And yet you are a good Republican or Good Democrat. Stop it.
     
  7. editec
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    editec Mr. Forgot-it-All

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    Sealy....one can oppose the GOLD STANDARD and still not like the FED as currently designed.

    The gold standard leads to DEFLATION in an expanding economy do you understand that?

    The GOLD standard simply cannot work to the benefit of the people, my friend.

    Read about the POPULISTS of the 19th century and you will begin to understand why a GOLD STANDARD is a terrible idea.
     
  8. sealybobo
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    sealybobo Diamond Member

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    You may be right. And for sure I don't know enough to be opinionated about it.

    I just think it would be a great idea that if we have a trillion dollars out in circulation, that we should also have a trillion dollars in gold backing it up.

    But that may no be possible in today's numbers.

    I won't argue with you. You're a pretty bright person.
     
  9. editec
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    editec Mr. Forgot-it-All

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    It's pretty simple to understand, really, Sealy and I know you can understand it.

    There is essantially a static amount of gold in the world.

    But there is an usually rapidly growing amount of goods and services being produced.

    Now you know enough about supply/demand to realize that:

    1. if the amount of money stays static,

    2. while the amount goods and services actually produced is rising,

    3. then the prices of goods and services will have to go DOWN because there will be the same amount of money chasing those ever increasing amounts of goods and services.

    4. In other words in a GOLD BACKED CURRENCY economy in an increasingly productive society, the prices of goods and services MUST go down.

    And since the consumer knows that the prices of things is going down tomorrow, they put off purchasing.

    Societies with growing populations NEED to have an increasing amount of good and services which comes from a vibrant (and balanced) economic system..



    That doesn't mean that I LIKE the way our FED works

    But it does mean that I believe that we need SOMETHING LIKE A FED to keep the balance between the amount of money in circulation and the amount of good and services that are being produced.

    The gold standard might work very well in a scarcity driven economy (like the mideval one) but it sucks wind in a PLENTY0BASED CONSUMER economy like we have now thanks to technology, industrialization and a growing population.
     
    Last edited: Jan 30, 2009
  10. Toro
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    Toro Diamond Member

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    It is not them whom I do not take seriously. It is people who do not understand economics and finance but choose to wallow in silly conspiracy theories whom I do not take seriously.

    There is a cogent argument for going back to the gold standard, but you aren't making it.

    The supply of money should grow at the rate of the economy. If it does not, then interest rates will be artificially too high, restricting economic growth for reasons that are unnecessary.

    During the Great Depression, the Fed raised interest rates from 1.5% to 3.5% in 1931 to stem the flow of gold outside the US. Can you imagine the Fed raising interest rates now? That would be insane, just as it was then.
     
    Last edited: Jan 30, 2009

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