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Republicans Eye Return to Gold Standard

inlet13inlet13 Posts: 1,979
edited September 2012 in A Moving Train
Huge news - if they actually plan to do something about it...

http://www.cnbc.com/id/48770752
Here's a new demo called "in the fire":

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  • Kel VarnsenKel Varnsen Posts: 1,952
    How exactly would that work? Isn't there way more US cash in circulation, then all the gold that has ever been mined?
  • inlet13inlet13 Posts: 1,979
    Kel Varnsen wrote:
    How exactly would that work? Isn't there way more US cash in circulation, then all the gold that has ever been mined?


    Admittedly it would be a task. But, let's start with facts - $35/ounce in 1971 - now - $1672/ounce. Why the change? Dollars are worth less, we've printed too much, as seen here:

    http://research.stlouisfed.org/fred2/series/AMBNS

    We could start small. Or we could jump right in, like Jim Grant suggests here:

    Getting back to the gold standard
    Commentary: Jim Grant says gold, not paper currency, is the future
    February 02, 2012|Brett Arends, MarketWatch

    NEW YORK (MarketWatch) — Jim Grant’s rise to power may be delayed.

    The legendary Wall Street writer, publisher of Grant’s Interest Rate Observer, has been mentioned by two of the rivals for the Republican presidential nomination. Newt Gingrich said if elected president, he’d name Grant to help run a commission looking at a possible return to the gold standard. And Ron Paul said, if elected president, he’d go all-in and name Grant — one of Wall Street’s best-known gold bugs — as the new chairman of the Federal Reserve.

    As Paul wants to abolish the Fed, it would doubtless be a temporary post. But Grant says he found the offer — which came out of the blue — very flattering.

    Alas, both men are trailing in the race to front-runner Mitt Romney. “Unfortunately, I haven’t heard from Mr. Romney yet,” joked Grant when I called on him in his offices down on Wall Street. “I’m sitting by the phone, I’m ready.”

    He may have to wait some time. Romney, a conventional Wall Street figure, is unlikely to tap him anytime soon.

    Jim Grant is a paradox: A legendary, well-established figure on Wall Street who is not part of the Wall Street “establishment.” He is a raging contrarian. A writer from a more elegant age, Grant is also a scathing critic of “too big to fail” banks and the whole Wall Street racket — with its privatized profits and socialized losses.

    The latest edition of his Interest Rate Observer carries a cartoon on the front cover, in which a banker is bemoaning his fate to a bartender: “Just one more unconscionable bonus,” he is saying over his beer, “and I would’ve been golden.”

    Grant is an old-school conservative, but the cartoon could have appeared without any change in The Nation: It’s a sign of how the principled right and the principled left have often found some common cause in their critique of the amoral, expedient financial “elite.”

    Entering Grant’s offices is like a step back in time. There are books and actual papers piled high on his desk. I could spy neither an iPad nor an iPhone. Grant, now in his 60s, wears bow ties and horn-rimmed glasses. He was known for many years as a “perma-bear” on the Street, and there is a giant stuffed bear by the door.

    He is best known these days — to Gingrich and Paul, among others — for his long-standing support for the gold standard. The world has moved in his direction. In 12 years, gold has risen from a derided relic trading at $250 an ounce to a hot investment at $1,750. Everywhere paper currency systems are under challenge. In 2008, the world discovered that you can’t just manufacture endless wealth out of thin air, as the gold bugs had long argued, and it is still struggling with the realization.

    Many people will think of the gold standard as a relic of a bygone era, something as old-fashioned as bow-ties and stuffed animals. (My caveat: To me, that’s not an insult.) Grant, when we met, argued the reverse. He says paper currencies and our current monetary system are the ones that are out of date.

    “The anachronism is today’s system,” he says. We have a “command and control, top down” system whereby the Federal Reserve imposes an interest rate on society. The Fed, in other words, tells us what the price of money should be. It is, Grant says, oddly at odds with the modern age. “We live in a world of collaborative social networks” of the Internet and Facebook, of Wikipedia instead of the old World Book, and so on. And yet when it comes to the price of money, we wait for a committee that sits in private to tell us what it should be.

    This, he argues, is the cause of so many of our ills. The Fed has moved from “central banking” to “central planning,” fueling bubbles, encouraging risks, and generally upsetting the equilibrium of the economy.

    It’s a good critique. I’m less certain that the gold standard would cure all our ills than I am of how flawed our current system is. Grant calls it “like tennis without a net” and says that the Fed has now inflated a bubble in Treasury bonds comparable to the housing bubble a few years ago, though he notes he’s been warning about Treasurys for several years, and so far they’ve kept going up.

    Grant calls the gold standard “the least imperfect monetary system.” He notes that our present regime of purely paper currency is new: It only dates back to Richard Nixon.

    I asked him, whimsically, what he’d do if he actually were to be named chairman of the Fed. He said he’d begin by communicating to the public why the present system was so wrong, and needed to be changed. He’d make the case for the gold standard.

    “I would then lay out a timeline for the conversion to a constitutional dollar, a dollar as envisaged by the Founding Fathers. “ A dollar, he says, is supposed to be a fixed measure, “like a foot, or a pound,” not something that can be redefined every few weeks by the Fed.

    In his ideal world, says Grant, he would lay out a three-year program to convert back to the gold standard, probably at around $2,500 per ounce of gold. He adds that he would take great care to avoid the notorious blunder made by Winston Churchill and the British back in 1925, when they went back on the gold standard at too high a price, and imposed brutal deflation on the economy. Alas, he admits, this would need an act of Congress.



    He added that he would also wind down the Fed’s bloated balance sheet, selling assets for gold, and he would shut down the Fed’s open market activities completely, relying instead on the discount window alone. The Fed, he said, shouldn’t be going out into the market to provide liquidity. It should simply be there to provide temporary liquidity to solvent banks when they ask, and on the basis of good collateral.

    For good measure, he’d also push for a repeal of a 1935 New Deal law that protected bank investors from runs on their financial institutions. Before the law, he notes, if a bank got into trouble, the investors were on the hook to bail it out: After all, it was their bank. The same was true of the partners in a Wall Street brokerage. The system of taxpayer bailouts, like that of paper money, is a modern innovation.

    “We want to reconnect the taking of risk with the bearing of risk,” says Grant. “Our financial titans, especially at the upper echelons, all too often take risks but they do not bear risks.” As people, they are probably no worse than their predecessors, he adds, but today “the consequences of failure are much less severe.”

    A decade ago, Jim Grant looked old-fashioned to many on Wall Street. Today, his views look much more in step with the times. His fortnightly Interest Rate Observer, famously, warned about the looming catastrophe in housing debt and mortgage-backed securities as early as 2005 and 2006. Sales are now booming.

    Unlike most modern journalists, Jim Grant does not give away his work for free: Instead he charges $965 a year to subscribe. Conventional wisdom keeps telling me this is a doomed business model, but we all know about CW. Grant says paid subscriptions are up an astounding 82% since early 2005, to near-record levels. Apparently quality still sells. I hope that, in this too, he may prove an “old-fashioned” holdover who is ahead of his time.
    Here's a new demo called "in the fire":

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  • MotoDCMotoDC Posts: 947
    I think GOP knows it'll never happen, so they can put this out there to pander to their Tea Party backers. This is another item like auditing the Fed. It's the right thing to do, but I'm terrified of the transition.
  • inlet13inlet13 Posts: 1,979
    MotoDC wrote:
    I think GOP knows it'll never happen, so they can put this out there to pander to their Tea Party backers. This is another item like auditing the Fed. It's the right thing to do, but I'm terrified of the transition.


    People were wondering why Ron Paul would run in the Republican camp. This is why. He was trying to alter party platforms.

    In the end, I think this approach is smarter than the Nader-style approach of running alone.

    On your post - I'm more terrified if we keep printing money to infinite. Just look at history for why.
    Here's a new demo called "in the fire":

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  • MotoDCMotoDC Posts: 947
    inlet13 wrote:
    MotoDC wrote:
    I think GOP knows it'll never happen, so they can put this out there to pander to their Tea Party backers. This is another item like auditing the Fed. It's the right thing to do, but I'm terrified of the transition.


    People were wondering why Ron Paul would run in the Republican camp. This is why. He was trying to alter party platforms.

    In the end, I think this approach is smarter than the Nader-style approach of running alone.

    On your post - I'm more terrified if we keep printing money to infinite. Just look at history for why.
    To infinity and beyond!
  • Godfather.Godfather. Posts: 12,504
    Kel Varnsen wrote:
    How exactly would that work? Isn't there way more US cash in circulation, then all the gold that has ever been mined?

    we are so far into this that going back to the gold standard could be very painful, I would think that the value of gold would drop like a Led Zeppelin... :D which in turn would effect everything else,home values,lending rates etc. in my opinion it would vbe too soon to do this,I don't think the economy could take it.
    I don't know much about this stuff so this is just a guess on my part.

    Godfather.
  • inlet13inlet13 Posts: 1,979
    Godfather. wrote:
    Kel Varnsen wrote:
    How exactly would that work? Isn't there way more US cash in circulation, then all the gold that has ever been mined?

    we are so far into this that going back to the gold standard could be very painful, I would think that the value of gold would drop like a Led Zeppelin... :D which in turn would effect everything else,home values,lending rates etc. in my opinion it would vbe too soon to do this,I don't think the economy could take it.
    I don't know much about this stuff so this is just a guess on my part.

    Godfather.


    Why would the value of gold go down, if demand for it increased?
    Here's a new demo called "in the fire":

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  • peacefrompaulpeacefrompaul Posts: 25,293
    Needs to be done, that is, if you want our currency to be based off of something that is actually of value...

    ...not Trillions of dollars of debt.
  • Kel VarnsenKel Varnsen Posts: 1,952
    inlet13 wrote:
    Godfather. wrote:
    Kel Varnsen wrote:
    How exactly would that work? Isn't there way more US cash in circulation, then all the gold that has ever been mined?

    we are so far into this that going back to the gold standard could be very painful, I would think that the value of gold would drop like a Led Zeppelin... :D which in turn would effect everything else,home values,lending rates etc. in my opinion it would vbe too soon to do this,I don't think the economy could take it.
    I don't know much about this stuff so this is just a guess on my part.

    Godfather.


    Why would the value of gold go down, if demand for it increased?

    Yea I think the value of gold would go way up. I mean like I said right now there is way more cash out there than gold. To put it in a very simple comparison, if there is a billion dollars in circulation, but the US only has one ounce of gold in reserve then all of the sudden an ounce of gold is worth 1 billion dollars. Not only would that fuck up gold prices world wild, but I imagine it would mess up how the US trades with other countries too.
  • Godfather.Godfather. Posts: 12,504
    inlet13 wrote:
    Godfather. wrote:
    Kel Varnsen wrote:
    How exactly would that work? Isn't there way more US cash in circulation, then all the gold that has ever been mined?

    we are so far into this that going back to the gold standard could be very painful, I would think that the value of gold would drop like a Led Zeppelin... :D which in turn would effect everything else,home values,lending rates etc. in my opinion it would vbe too soon to do this,I don't think the economy could take it.
    I don't know much about this stuff so this is just a guess on my part.

    Godfather.


    Why would the value of gold go down, if demand for it increased?

    because we have more dollars printed than we have gold but now that I think about it maybe the price of gold would skyrocket to catch up with the amount of dollars that are printed ?

    Godfather.
  • Godfather.Godfather. Posts: 12,504
    ooops I missed your last post. :mrgreen:

    Godfather.
  • FrankieGFrankieG Abingdon MD Posts: 9,100
    I'm not gonna believe it until I see it. I'm calling BS on it and chalking it up to be a proposed policy that will attract voters then never actually get done.

    Godfather. wrote:
    drop like a Led Zeppelin... :D

    oh that's good! I'm stealing that. :lol:
    2003: 7/14 NJ ... 2006: 6/1 NJ, 6/3 NJ ... 2007: 8/5 IL ... 2008: 6/24 NY, 6/25 NY, 8/7 EV NJ ... 2009: 10/27 PA, 10/28 PA, 10/30 PA, 10/31 PA
    2010: 5/20 NY, 5/21 NY ... 2011: 6/21 EV NY, 9/3 WI, 9/4 WI ... 2012: 9/2 PA, 9/22 GA ... 2013: 10/18 NY, 10/19 NY, 10/21 PA, 10/22 PA, 10/27 MD
    2015: 9/23 NY, 9/26 NY ... 2016: 4/28 PA, 4/29 PA, 5/1 NY, 5/2 NY, 6/11 TN, 8/7 MA, 11/4 TOTD PA, 11/5 TOTD PA ... 2018: 8/10 WA
    2022: 9/14 NJ ... 2024: 5/28 WA, 9/7 PA, 9/9 PA ---- http://imgur.com/a/nk0s7
  • Godfather.Godfather. Posts: 12,504
    FrankieG wrote:
    I'm not gonna believe it until I see it. I'm calling BS on it and chalking it up to be a proposed policy that will attract voters then never actually get done.

    Godfather. wrote:
    drop like a Led Zeppelin... :D

    oh that's good! I'm stealing that. :lol:

    why not I stole it :lol: from a old story of how the Mighty Zepp got their name,something someone said
    -oh yea that'll go over like a "Led Zeppelin"-
    if that's true or not I don't know but it's a great story.

    Godfather.
  • hedonisthedonist Posts: 24,524
    Godfather. wrote:
    FrankieG wrote:
    I'm not gonna believe it until I see it. I'm calling BS on it and chalking it up to be a proposed policy that will attract voters then never actually get done.

    Godfather. wrote:
    drop like a Led Zeppelin... :D

    oh that's good! I'm stealing that. :lol:

    why not I stole it :lol: from a old story of how the Mighty Zepp got their name,something someone said
    -oh yea that'll go over like a "Led Zeppelin"-
    if that's true or not I don't know but it's a great story.

    Godfather.
    "When Jimmy Page was assembling the group, Keith Moon (drummer from The Who) got word of his plans and predicted the group would go down "like a lead balloon" (this is a common English expression). Bassist and keyboardist John Entwistle thought it would be "more like a lead zeppelin." Page took the phrase and manager Peter Grant changed the spelling to "led" in order to avoid mispronunciation."

    Here's to a golden Friday ;)
  • inlet13inlet13 Posts: 1,979
    Kel Varnsen wrote:
    inlet13 wrote:
    Why would the value of gold go down, if demand for it increased?

    Yea I think the value of gold would go way up. I mean like I said right now there is way more cash out there than gold. To put it in a very simple comparison, if there is a billion dollars in circulation, but the US only has one ounce of gold in reserve then all of the sudden an ounce of gold is worth 1 billion dollars. Not only would that fuck up gold prices world wild, but I imagine it would mess up how the US trades with other countries too.


    If you read that article I put up there, that individual kinda gets at how it could be implemented. The US would buy gold from people - his bet was at $2500 an ounce. It's at $1670 an ounce now, so I think he's factoring in demand increases.

    I don't think it would work the way you're mentioning. I think it probably would involve a few years of transition where the government accumulates enough gold to actually back each dollar. From what I understand, even in the 70s when Nixon officially ended the Gold Standard, we weren't completely "on it". IN other words, our currency was not fully backed by gold, it was partially backed. I think the goal would be to get it to some point similar. Not saying this wouldn't be a task, I think it would take time.

    But, the reality is - it's worth it. I'm up for other alternatives too. But, even the consideration of this is a good first step.
    Here's a new demo called "in the fire":

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  • mickeyratmickeyrat Posts: 40,146
    Godfather. wrote:
    FrankieG wrote:
    I'm not gonna believe it until I see it. I'm calling BS on it and chalking it up to be a proposed policy that will attract voters then never actually get done.

    Godfather. wrote:
    drop like a Led Zeppelin... :D

    oh that's good! I'm stealing that. :lol:

    why not I stole it :lol: from a old story of how the Mighty Zepp got their name,something someone said
    -oh yea that'll go over like a "Led Zeppelin"-
    if that's true or not I don't know but it's a great story.

    Godfather.
    John Entwhisle said it would go over like a lead balloon.
    _____________________________________SIGNATURE________________________________________________

    Not today Sir, Probably not tomorrow.............................................. bayfront arena st. pete '94
    you're finally here and I'm a mess................................................... nationwide arena columbus '10
    memories like fingerprints are slowly raising.................................... first niagara center buffalo '13
    another man ..... moved by sleight of hand...................................... joe louis arena detroit '14
  • mickeyratmickeyrat Posts: 40,146
    So then what gets done in those african countries where mining of this and other valuable minerals/metals are being used to fund wars etc?

    What do we do about that?
    _____________________________________SIGNATURE________________________________________________

    Not today Sir, Probably not tomorrow.............................................. bayfront arena st. pete '94
    you're finally here and I'm a mess................................................... nationwide arena columbus '10
    memories like fingerprints are slowly raising.................................... first niagara center buffalo '13
    another man ..... moved by sleight of hand...................................... joe louis arena detroit '14
  • inlet13inlet13 Posts: 1,979
    mickeyrat wrote:
    So then what gets done in those african countries where mining of this and other valuable minerals/metals are being used to fund wars etc?

    What do we do about that?


    They fight less wars? Not sure I'm following you...
    Here's a new demo called "in the fire":

    <object height="81" width="100%"> <param name="movie" value="https://player.soundcloud.com/player.swf?url=http://api.soundcloud.com/tracks/28998869&quot;&gt;&lt;/param&gt; <param name="allowscriptaccess" value="always"></param> <embed allowscriptaccess="always" height="81" src="https://player.soundcloud.com/player.swf?url=http://api.soundcloud.com/tracks/28998869&quot; type="application/x-shockwave-flash" width="100%"></embed> </object> <span><a href=" - In the Fire (demo)</a> by <a href="
  • josevolutionjosevolution Posts: 30,199
    So how would that work we would have to buy gold or sell the gold we allready have ? disclaimer i have no gold to sell ...
    jesus greets me looks just like me ....
  • mickeyratmickeyrat Posts: 40,146
    inlet13 wrote:
    mickeyrat wrote:
    So then what gets done in those african countries where mining of this and other valuable minerals/metals are being used to fund wars etc?

    What do we do about that?


    They fight less wars? Not sure I'm following you...
    well, I was listening to NPR the other day where they started talking about how certain mined metals and minerals were being classified as conflict metals/minerals or nonconflict like with the diamond industry and how companies were going to have to start establishing protocols for ensuring their supply chain didnt include these conflict products.

    Speaking specifically of DRC Dem Repub Of Congo. Rebels and warlords in control of some of these mines are using the funds from the sale of these products to buy their weapons and fund their conflicts. Gold was one metal mentioned.
    _____________________________________SIGNATURE________________________________________________

    Not today Sir, Probably not tomorrow.............................................. bayfront arena st. pete '94
    you're finally here and I'm a mess................................................... nationwide arena columbus '10
    memories like fingerprints are slowly raising.................................... first niagara center buffalo '13
    another man ..... moved by sleight of hand...................................... joe louis arena detroit '14
  • inlet13inlet13 Posts: 1,979
    josevolution wrote:
    So how would that work we would have to buy gold or sell the gold we allready have ? disclaimer i have no gold to sell ...


    I posted a long article on one guy's take on the first page here. Basically the government would buy it.
    Here's a new demo called "in the fire":

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  • inlet13inlet13 Posts: 1,979
    mickeyrat wrote:
    inlet13 wrote:
    mickeyrat wrote:
    So then what gets done in those african countries where mining of this and other valuable minerals/metals are being used to fund wars etc?

    What do we do about that?


    They fight less wars? Not sure I'm following you...
    well, I was listening to NPR the other day where they started talking about how certain mined metals and minerals were being classified as conflict metals/minerals or nonconflict like with the diamond industry and how companies were going to have to start establishing protocols for ensuring their supply chain didnt include these conflict products.

    Speaking specifically of DRC Dem Repub Of Congo. Rebels and warlords in control of some of these mines are using the funds from the sale of these products to buy their weapons and fund their conflicts. Gold was one metal mentioned.


    This is happening without a Gold Standard though. In my opinion, the reason is because gold is so valuable right now. Like I said, $35/ounce in 1970, now $1670/ounce. That's ridiculous growth.

    People are looking for gold because they know there's no value in many currencies. It's not a function of the gold, it's a function of the currencies.
    Here's a new demo called "in the fire":

    <object height="81" width="100%"> <param name="movie" value="https://player.soundcloud.com/player.swf?url=http://api.soundcloud.com/tracks/28998869&quot;&gt;&lt;/param&gt; <param name="allowscriptaccess" value="always"></param> <embed allowscriptaccess="always" height="81" src="https://player.soundcloud.com/player.swf?url=http://api.soundcloud.com/tracks/28998869&quot; type="application/x-shockwave-flash" width="100%"></embed> </object> <span><a href=" - In the Fire (demo)</a> by <a href="
  • mickeyratmickeyrat Posts: 40,146
    inlet13 wrote:
    mickeyrat wrote:
    well, I was listening to NPR the other day where they started talking about how certain mined metals and minerals were being classified as conflict metals/minerals or nonconflict like with the diamond industry and how companies were going to have to start establishing protocols for ensuring their supply chain didnt include these conflict products.

    Speaking specifically of DRC Dem Repub Of Congo. Rebels and warlords in control of some of these mines are using the funds from the sale of these products to buy their weapons and fund their conflicts. Gold was one metal mentioned.


    This is happening without a Gold Standard though. In my opinion, the reason is because gold is so valuable right now. Like I said, $35/ounce in 1970, now $1670/ounce. That's ridiculous growth.

    People are looking for gold because they know there's no value in many currencies. It's not a function of the gold, it's a function of the currencies.
    with the dollar being what it is worth then, is that 1670 figure actually accurate?

    Guess I'm looking at this backwards. Because then the dollar is valued what it is, this makes the 1670 figure justified?

    Does this then expose the dollar in actual terms? what about those countries that value according to the dollar?
    _____________________________________SIGNATURE________________________________________________

    Not today Sir, Probably not tomorrow.............................................. bayfront arena st. pete '94
    you're finally here and I'm a mess................................................... nationwide arena columbus '10
    memories like fingerprints are slowly raising.................................... first niagara center buffalo '13
    another man ..... moved by sleight of hand...................................... joe louis arena detroit '14
  • inlet13inlet13 Posts: 1,979
    mickeyrat wrote:
    inlet13 wrote:
    mickeyrat wrote:
    well, I was listening to NPR the other day where they started talking about how certain mined metals and minerals were being classified as conflict metals/minerals or nonconflict like with the diamond industry and how companies were going to have to start establishing protocols for ensuring their supply chain didnt include these conflict products.

    Speaking specifically of DRC Dem Repub Of Congo. Rebels and warlords in control of some of these mines are using the funds from the sale of these products to buy their weapons and fund their conflicts. Gold was one metal mentioned.


    This is happening without a Gold Standard though. In my opinion, the reason is because gold is so valuable right now. Like I said, $35/ounce in 1970, now $1670/ounce. That's ridiculous growth.

    People are looking for gold because they know there's no value in many currencies. It's not a function of the gold, it's a function of the currencies.
    with the dollar being what it is worth then, is that 1670 figure actually accurate?

    Guess I'm looking at this backwards. Because then the dollar is valued what it is, this makes the 1670 figure justified?

    Does this then expose the dollar in actual terms? what about those countries that value according to the dollar?


    It's kinda hinting at the inflation involved inherently. Basically, we printed a shit more dollars. So, each dollar's worth declined in value. And, of course, we were no longer backed by any gold, or anything at all. Moreover, investors know this, and they saw our debt, so they know one day the shit will hit the fan and gold's a good place to be because you can use it to buy stuff when the currency collapses. It kinda acts like $.

    No doubt, our currency's relative value would change and countries that peg to our currency would follow.
    Here's a new demo called "in the fire":

    <object height="81" width="100%"> <param name="movie" value="https://player.soundcloud.com/player.swf?url=http://api.soundcloud.com/tracks/28998869&quot;&gt;&lt;/param&gt; <param name="allowscriptaccess" value="always"></param> <embed allowscriptaccess="always" height="81" src="https://player.soundcloud.com/player.swf?url=http://api.soundcloud.com/tracks/28998869&quot; type="application/x-shockwave-flash" width="100%"></embed> </object> <span><a href=" - In the Fire (demo)</a> by <a href="
  • josevolutionjosevolution Posts: 30,199
    I think i missed the boat on the gold , i had well over 100k in liquid money just 4yrs ago i thought about buying gold & silver but didn't jump on it and now most of the $$ i have used for other things :oops: :oops: fuck me in the brain .......
    jesus greets me looks just like me ....
  • DriftingByTheStormDriftingByTheStorm Posts: 8,684
    There WILL be a global revaluation of ALL currency towards gold again sometime ... sooner than later.
    Either that or we are going to have one hell of a massive war.

    Personally i hope for some organized resettlement of all currencies \ debts in terms of a new global price of gold. Preferably this would all happen in CONJUNCTION with the announcment of the abandonment of the "old way" and the beginning of some new system, in total.

    You may say I'm a dreamer, but i'm not.
    If I was to smile and I held out my hand
    If I opened it now would you not understand?
  • MotoDCMotoDC Posts: 947
    Because then the dollar is valued what it is, this makes the 1670 figure justified?
    This is pretty spot on. The real value of gold hasn't changed much over the years, which is kinda the point and the reason why it's been "money" (i.e., a store of value) for 1000s of years. It's the old adage that refers to an ounce of gold buying you a nice suit in 1901 and a similarly nice suit in 2001. It's important to keep in mind both ways of measuring the "price" of gold -- in terms of dollars and also in terms of goods and services.

    jose, i feel your pain. I came damn close to buying gold about 10 years ago when it was easily 1/4th today's price. Honestly I just didn't know how to go about getting trustworthy metal, nor how to get rid of it at a fair price if I needed to.
  • brianluxbrianlux Moving through All Kinds of Terrain. Posts: 42,417
    The idea has some merits but I'm with those that say it's just so much politicizing. This idea isn't new, it's just getting pumped up to win some votes and then will quietly slip back into the back rooms.

    Hey, but the Led Zeppelin stuff is pretty cool! :mrgreen:
    "Pretty cookies, heart squares all around, yeah!"
    -Eddie Vedder, "Smile"

    "Try to not spook the horse."
    -Neil Young













  • unsungunsung I stopped by on March 7 2024. First time in many years, had to update payment info. Hope all is well. Politicians suck. Bye. Posts: 9,487
    brianlux wrote:
    The idea has some merits but I'm with those that say it's just so much politicizing. This idea isn't new, it's just getting pumped up to win some votes and then will quietly slip back into the back rooms.


    I agree with this. The GOP has done EVERYTHING that they could to screw Ron Paul, yesterday they changed the five state rule to eight so now he can't be nominated from the floor and disrupt things. I so wanted chaos. They are doing this (gold standard) to get the RP votes and save face/create harmony. I'm still voting for RP or Libertarian.

    The bone that they threw the Paul camp was an official adoption of some of his issues as official party stands. The gold standard, auditing the Fed, an entire section dedicated to the US Constitution, internet freedom, banning the use of drones domestically, and protecting private property from unfair govt seizure are some of the Paul issues that are now part of the official party agenda. They did not adopt his foreign policy or many social issues, so that was the bad thing. They would not take a stand against NDAA either.

    Either way it is a start.
  • Kel VarnsenKel Varnsen Posts: 1,952
    I also wonder what would happen if the US did tie their dollar to the value of gold, and then say some other country with a ton of natural resources (say China, Russia or Canada as examples) announced that they had found a massive gold deposit somewhere. All of the sudden the supply of gold goes up, price goes down and the US dollar's value would get messed up over something they have no control over. Hell if another country with a ton of gold reserves wanted to actively mess with the US economy all they would have to do release a ton of gold from their reserve onto the open market to tank the price of gold, sort of like how OPEC can control the price of oil by how they control supply.
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