Utah is a terroist state

[peach174]

Do most of you know that America has been on the gold standard more often than not? For about 180 years this nation has been on gold standard.
That using gold standard will strengthen the dollar?
That going on the gold standard will take the credit card away from congress?
For this reason alone congress and wall street will be totally against this. Because it takes away their power.
Going on the gold standard again, gold becomes the peoples money. Not money that is ruled by a small group of people.
We will still have our paper money,we won't be carrying around gold and silver coins. If we do this again though, you could go into a bank and turn a 20.00 dollar bill into a 20 dollar gold coin.
The most important part of this is the MARKETS must set the standard of how much a troy ounce of gold will be, NOT the Feds,Not the banks
If the Feds do it, it will cause deflation of our paper money.
I'm still looking at the pro's and con's of it but I do like the idea of it taking away the power of Congresses credit card.

 

[Toro]

He no doubt also believes that a gold standard puts us at the mercy of miners. This is akin to a paper dollar standard putting us at the mercy of paper companies.

Why does a gold standard not put us at the mercy of miners?

It is not akin to the paper companies. It costs about $800 to take an ounce of gold out of the ground. It costs about 0.08 cents to create a piece of paper.

The cost of each enterprise is totally irrelevant. Miners cannot produce gold at will.
And your supposition about cost is absurd because every mine's cost is different.
Again, Britain never produced an ounce of gold but was on the gold standard for centuries.

The supply of money should rise with growth in the economy. In theory, if the economy grows and increases demand for money balances, in a gold standard, the price of gold should rise. In theory, all else being equal, this should lead to greater incentive to produce gold because of higher prices, increasing the money supply. In theory, equilibrium will be restored as increased supply lowers the price of gold.

What matters in the total supply of gold is the aggregate cost curve of pulling gold out of the ground. It is the sum of all aggregate costs relative to all aggregate prices. In some places in the world, such as the Red Lake mine in northern Ontario, the all-in cost of producing gold is about $400 an ounce. But we already have a relatively good idea of the productive capacity of that mine. Like most goods, the supply of gold is set on the margin, and marginal increases in the supply of gold - in theory - come from projects with relatively high costs. As the price of gold rises, marginal mines that are uneconomic at lower prices become profitable. This - in theory - increases the supply of gold as those mines come online.

The problem with this is that in the real world, mine production has been falling for the past decade, even though the price of gold has gone up 500%. This shouldn't happen in a well functioning market. But gold is not a well functioning market. That's the problem.

"At the mercy of miners" does not necessarily mean inflation. In this scenario, a rising price of gold is deflationary. That's the point. Rising gold prices should make it more profitable to mine gold and increase the money supply to offset deflation in the economy. But that has not happened over the past decade, even though the price of gold has quintupled. To offset deflation in the economy, we need an expanding money supply. Gold supply has been contracting.

 

[The T]

More states that just Utah have similiar legislation pending.

Indeed. Glad to see the Ninth and Tenth being exercised for the sake of Federalism...