The Case for a Genuine Gold Dollar

[☭proletarian☭]

For nearly a half-century the United States and the rest of the world have experienced an unprecedented continuous and severe inflation. It has dawned on an increasing number of economists that the fact that over the same half-century the world has been on an equally unprecedented fiat paper standard is no mere coincidence. Never have the world's moneys been so long cut off from their metallic roots. During the century of the gold standard from the end of the Napoleonic wars until World War I, on the other hand, prices generally fell year after year, except for such brief wartime interludes as the Civil War.[1] During wartime, the central governments engaged in massive expansion of the money supply to finance the war effort. In peacetime, on the other hand, monetary expansion was small compared to the outpouring of goods and services attendant upon rapid industrial and economic development. Prices, therefore, were normally allowed to fall. The enormous expenditures of World War I forced all the warring governments to go off the gold standard,[2] and unwillingness to return to a genuine gold standard eventually led to a radical shift to fiat paper money during the financial crisis of 1931-33.
It is my contention that there should be no mystery about the unusual chronic inflation plaguing the world since the 1930s. The dollar is the American currency unit (and the pound sterling, the franc, the mark, and the like, are equivalent national currency units), and since 1933, there have been no effective restrictions on the issue of these currencies by the various nation-states. In effect, each nation-state, since 1933, and especially since the end of all gold redemption in 1971, has had the unlimited right and power to create paper currency which will be legal tender in its own geographic area. It is my contention that if any person or organization ever obtains the monopoly right to create money, that person or organization will tend to use this right to the hilt. The reason is simple: Anyone or any group empowered to manufacture money virtually out of thin air will tend to exercise that right, and with considerable enthusiasm. For the power to create money is a heady and profitable privilege indeed.

Read the rest here:
The Case for Genuine Gold Dollar

 

[uscitizen]

We discussed this on another thread recently.
I think my position was that we do not have 10% of the gold we need to back our currency in circulation.
This would either cause a $ to be worth a whole lot or not much.

 

[Valerie]

We discussed this on another thread recently.
I think my position was that we do not have 10% of the gold we need to back our currency in circulation.
This would either cause a $ to be worth a whole lot or not much.

Yes, and it was a thread started by this same poster.


http://www.usmessageboard.com/economy/105974-a-gold-bank.html#post2020046



http://www.usmessageboard.com/economy/105974-a-gold-bank.html#post2020825

 

[uscitizen]

We discussed this on another thread recently.
I think my position was that we do not have 10% of the gold we need to back our currency in circulation.
This would either cause a $ to be worth a whole lot or not much.

Yes, and it was a thread started by this same poster.


http://www.usmessageboard.com/economy/105974-a-gold-bank.html#post2020046



http://www.usmessageboard.com/economy/105974-a-gold-bank.html#post2020825

Ahh yes you are correct I think.

 

[Valerie]

The other side of the coin...

The term "gold standard," whether used in an historical or a theoretical context, can mean many different things. And for each meaning of this term, a reference to the "costs" of a gold standard will not be unambiguous. Yet it is commonly believed, by economists and laypersons alike, that cost considerations eliminate gold as a viable medium of exchange in modern-day economies.

THE COSTS OF A GOLD STANDARD

 

[elvis]

[ame=http://www.youtube.com/watch?v=roPldI_fN54]YouTube - Two sides of the coin - Kiss[/ame]

 

[Valerie]

Uses & Applications > Utilise Gold. Scientific, industrial and medical applications, products ,suppliers from the World Gold Council





>

Demand and supply
As is true of all asset prices, gold's price moves in response to the changing balance between supply and demand. Mine production is relatively inelastic due to the long lead times that exist in gold mining, which explains why the rally in the gold price since 2001 has still not engendered an increase in production levels. Meanwhile, demand has shown sustained growth, due at least in part to rising income levels in gold's key markets. This has created the foundation for the most positive outlook the precious metal has known for a quarter of a century.

>

Gold Market Knowledge Archive:

This site provides access to a broad range of information regarding the gold market, its structure, operations and participants. A number of detailed documents are available for download and links are provided to a number of other sites and resources to further aid your exploration of the remarkable world of gold.
Gold Market Knowledge Archive: > World Gold Council, market knowledge. Gold market reports, market structure, operations and participants.