The Coming Gold Standard?

[jwoodie]

Whether by design or circumstance, the return to a gold standard for our currency may be in our future. First, we have an unsustainable national debt that can only be resolved through dollar devaluation or bankruptcy. Secondly, the US dollar is already losing its reserve currency status to alternative forms of commodity-based international payments.

One way to stop (or at least slow) the decline of our currency would be to reestablish it on a gold standard. Assuming we have enough gold to cover it, the US could peg the dollar at $4000 per ounce, about twice the current price of gold. This would effectively cut our national debt in half and reestablish the dollar as the world's most secure currency. What are the pros, cons and feasibility of this idea?

 

[The Sage of Main Street]

Whether by design or circumstance, the return to a gold standard for our currency may be in our future. First, we have an unsustainable national debt that can only be resolved through dollar devaluation or bankruptcy. Secondly, the US dollar is already losing its reserve currency status to alternative forms of commodity-based international payments.

One way to stop (or at least slow) the decline of our currency would be to reestablish it on a gold standard. Assuming we have enough gold to cover it, the US could peg the dollar at $4000 per ounce, about twice the current price of gold. This would effectively cut our national debt in half and reestablish the dollar as the world's most secure currency. What are the pros, cons and feasibility of this idea?

Urine-Colored Rocks

 

[GMCGeneral]

Whether by design or circumstance, the return to a gold standard for our currency may be in our future. First, we have an unsustainable national debt that can only be resolved through dollar devaluation or bankruptcy. Secondly, the US dollar is already losing its reserve currency status to alternative forms of commodity-based international payments.

One way to stop (or at least slow) the decline of our currency would be to reestablish it on a gold standard. Assuming we have enough gold to cover it, the US could peg the dollar at $4000 per ounce, about twice the current price of gold. This would effectively cut our national debt in half and reestablish the dollar as the world's most secure currency. What are the pros, cons and feasibility of this idea?

It would force the Federal, and by extension, State governments to make drastic and much needed cuts and balance their budgets. Tie the return of the Gold Standard with the Balanced Budget Amendment.

 

[jwoodie]

It would force the Federal, and by extension, State governments to make drastic and much needed cuts and balance their budgets. Tie the return of the Gold Standard with the Balanced Budget Amendment.

Balanced Budget Amendments are good in theory but difficult in practice, since they rely on projected revenues and expenditures. I would prefer an Amendment that would prohibit increases in expenditures (e.g., COLAs) if the prior year's budget wasn't balanced.

But the question remains: What to do with our current debt?

 

[LeroyDumonde]

There should be a weed based currency.

 

[sparky]

Fiat systems can only run on faith for so long......~S~

 

[Vastator]

Whether by design or circumstance, the return to a gold standard for our currency may be in our future. First, we have an unsustainable national debt that can only be resolved through dollar devaluation or bankruptcy. Secondly, the US dollar is already losing its reserve currency status to alternative forms of commodity-based international payments.

One way to stop (or at least slow) the decline of our currency would be to reestablish it on a gold standard. Assuming we have enough gold to cover it, the US could peg the dollar at $4000 per ounce, about twice the current price of gold. This would effectively cut our national debt in half and reestablish the dollar as the world's most secure currency. What are the pros, cons and feasibility of this idea?

The US government has killed more than a few folks who have tried to establish a gold backed currency. Gaddafi for one...

 

[expat_panama]

Fiat systems can only run on faith for so long......~S~

So we put our faith in precious metals? That's crazy.

OK, so lots of folks say we need a gold based currency. At the same time lots of other folks say we need a silver based currency (remember the silver dollar?). We have to pick one because back in '68 an ounce of gold was only worth 17 oz of silver while in 2020 it went to 115 oz silver. Understand that in 2020 silver was worth less. In 1968 gold was worth less.

Let's forget about worthless metals and stick to what we got, a currency based on things we actually buy like food, clothes, energy, homes. We need that stuff.

 

[Harpy Eagle]

Fiat systems can only run on faith for so long......~S~

That is all they have ever ran on, and most are doing just fine.

 

[Vastator]

That is all they have ever ran on, and most are doing just fine.

And all have, and will fail.

 

[Harpy Eagle]

And all have, and will fail.

The Pound has been a fiat currency for 93 years, when did it fail...since all have failed.

 

[Vastator]

The Pound has been a fiat currency for 93 years, when did it fail...since all have failed.

...will.

Fiat Currency Graveyard: A History of Monetary Folly - Gini Foundation

Economic & Healthcare Security | Decentralized, Sustainable & Equitable Monetary & Governance System | Fast Cryptocurrency | Transaction Privacy | Real-World Commerce | Protect Human Rights

ginifoundation.org

 

[jwoodie]

Let's forget about worthless metals and stick to what we got, a currency based on things we actually buy like food, clothes, energy, homes. We need that stuff.

The only way the US will be able to service its debt is through dollar devaluation. The short term solution is through inflation, but that causes even greater long term problems. The longer term solution is to officially devalue the dollar, but against what standard?value

It is relatively easy for Argentina to change its exchange rate with US currency, but with what other currency could the US change its exchange rate? All of them? Wouldn't this result in an exchange rate war which would accomplish nothing? The only other option is to peg the dollar to some internationally accepted unit of value. This could be any commodity, but gold seems to be the best at this time.

 

[Orangecat]

Fiat systems can only run on faith for so long......~S~

Faith and military dominance, that is. Still bound to fail either way. Invest in gold, land, and firearms.

 

[sparky]

Very rare photos of the US Army seizing the weapons of mass destruction of Iraq​

~S~

 

[Orangecat]

Very rare photos of the US Army seizing the weapons of mass destruction of Iraq​

View attachment 911691


~S~

It would be so tempting to just stick one of those bars in your rucksack...

 

[expat_panama]

The only way the US will be able to service its debt is through dollar devaluation...

Let's stop right there.

We need to be aware of all the times that debt service payments were made while the dollar appreciated. There've been dozens of times over the past couple decades alone.

 

[SootedUpCyndi]

Let's stop right there.

We need to be aware of all the times that debt service payments were made while the dollar appreciated. There've been dozens of times over the past couple decades alone.

I kind of thought the us dollar was done- and as much as everyone talks about them- I thought it may be eggs?

eggs gonna be the new currency.

 

[expat_panama]

I kind of thought the us dollar was done- and as much as everyone talks about them- I thought it may be eggs?

View attachment 911797
eggs gonna be the new currency.

You're absolute right, the U.S. dollar is completely worthless so it's time to throw them all out. Please let me know whenever you'd like me to haul away your trash. No charge.

 

[jwoodie]

Let's stop right there.

We need to be aware of all the times that debt service payments were made while the dollar appreciated. There've been dozens of times over the past couple decades alone.

Irrelevant. Debt service payments are taking up a higher percentage of the federal budget every year. Perhaps you should read the entire post instead of stopping at the first sentence.