Is there enough gold to have a gold standard?
derryb
Posts: 36,943 ✭✭✭✭✭
. . . there’s always enough gold, you just have to get the price right.
"The analytical question is, you can have a gold standard if you get the price right; what is the non-deflationary price? What price would gold have to be in order to support global trade and commerce, and bank balance sheets, without reducing the money supply? The answer, based on today’s money supply, is $10,000 an ounce."
"The now impending question is, are we going to have a gold standard? That’s a function of collapse of confidence in central bank money, which we’re already seeing. But monetary resets have happened three times before, in 1914, 1939 and 1971. On average, it happens about every 30 or 40 years. We’re going on 50."
"So we’re long overdue. Got gold?"
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
Comments
Dont follow JR anymore after the project prophecy stuff.
One look at the 19th century in the USA when we were on a gold standard quite obviously shows regular bouts of inflation and deflation exceeding 10% per year. Overheated economies and severe recessions were the norm. Only an idiot would condone a return to a gold standard.
Knowledge is the enemy of fear
The difference between a gold standard-type of economy and a fiat-type economy is simply who wields the control.
If you trust big government bureaucracies and elitist central bankers, then a fiat economy is right up your alley.
If you prefer a bit more latitude and free market risk & reward, with natural, physical constraints on the manipulators & politicians - then an economy based on something real, physical, verifiable and accountable - is what you want.
There used to be things like Generally-Accepted Accounting Principles. That keeps changing as things deteriorate.
I knew it would happen.
Since we - the general public - have zero control/influence over the monetary system, it is best to have options...cash, PM's, real estate, material valued possessions.... and of course, resources to cover disasters. Sleep well...
Cheers, RickO
Ricko, I suspect that at some point the people who have foresight and make preparations will be labelled "manipulators" and "hoarders". History repeats. That's precisely why a Constitutional Republic is so important.
I knew it would happen.
Who was wielding control in the 1800s?
Knowledge is the enemy of fear
Who was wielding control in the 1800s?
That's a good question. One thing I can say is that it wasn't the same people who create money from thin air like they do now.
I knew it would happen.
That was the bigger question for me. Not if there is enough gold but why on earth would anyone (other than a loony gold bug) want to return to the gold standard?
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
no one is qualified to wield control
of course there is enough gold
a gold standard limits government spending to only what it can raise in taxes or borrow against its gold reserve, and prevents it from simply printing money to pay its debts.
It also takes power over the money supply away from central bankers.
Not good reasons? lol
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
It would have limited the mass murder of the 20th century! That isn't a good enough reason apparently
So maybe some research into the question would be advisable? Knowledge is power afterall.
Knowledge is the enemy of fear
So maybe some research into the question would be advisable? Knowledge is power afterall.
I stand by my assertion that it wasn't the same people who create money from thin air like they do now. Do you want to venture a guess?
I knew it would happen.
I dont need to guess. Not exactly the same folk but their cousins.
Knowledge is the enemy of fear
Maybe return to the Silver standard as well. But then Silver would have to be pegged at a arbitrary value to keep inflation in check. More problems. I guess we are stuck with king dollar.
100% Positive BST transactions
Debt is good according to the orangutan, I remember when another $T was a big deal. Crossed $23T last month and don't even recall hearing about it in the news. Heard the economy is the greatest economy in the history of economies...….Or perhaps just time for another bankrupt casino. lol
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
There would not be enough gold to return to a gold standard. The US economy since 1945 works best with 2% inflation. A gold standard does not allow for that.
Individuals can have their own gold standard, and it will work fairly well over very long periods of time.
says who?
we haven't had a normal economy at any point since 1945
Works best with 2% inflation? You been drinking that FED kool-aid again.
So, you prefer paying 2% more every year and then having to fight and beg for the 2% raise/cost of living allowance to cover it?
Inflation is a hidden tax and someone is skimming 2% of your money every year. I'm a firm believer that 0% inflation would provide prosperity for all that are willing to work for a living. A healthy GDP does not require inflation.
There's always enough gold for a gold standard, you just have to price it correctly.
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
the only problem with your post is the last sentence. You don't get to price the gold in dollars the dollars are what is imaginary it has to go the other way around.
The American empire is going to outlive most of us in here but a hundred years from now when dollars won't exist anymore , an ounce of gold will still be an ounce
Dollars back by gold are no longer imaginary. They become "good as gold."
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
you can back the dollars with gold but you don't get to set the price of gold in dollars , you set the price of dollars in gold.
We can argue about when exactly the dollar is going to die but not whether it will. When the 1976 bicentennial hit we were well past the peak of this country/this government. We won't reach a tricentennial
Sure we can.
I strongly disagree with all 3 statements.
Liberty: Parent of Science & Industry
We can't let go of the damned penny and you think the Dollar's days are numbered?!?
Har de har har
Liberty: Parent of Science & Industry
Funny, that big copper I cent of the 1700's has the spending value as around a Dollar in 2019 due to inflation. A Gold standard would keep inflation in check.
100% Positive BST transactions
I have my own gold standard. One ounce of gold in 2000 was about $300. I bought some a little less than that IIRC. It's around $1,500 now.
A dollar in 2000 bought a gal of gas. Now it takes $3.50. The 2000 dollar is now worth 50cents. However in terms of fuel & energy that dollar is worth 30cents.
YouBetterBeSavingSomethingBesidesDollars
Would the massive deficit spending of the US government be possible under a gold standard?
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
a gold standard does not prevent reckless borrowing. It does prevent printing funny money to pay the bill.
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
How long can this happen before the government defaults because they can't pay their creditors? Once the government's credit rating drops to zero, won't all borrowing stop?
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
not if their central bank is buying their debt.
Modern Monetary Theory Magic Money Tree will fix everything,
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
that big copper I cent of the 1700's has the spending value as around a Dollar in 2019 due to inflation.
A large cent looks pretty similar in size and composition to a "golden dollar".
A dollar in 2000 bought a gal of gas. Now it takes $3.50. The 2000 dollar is now worth 50cents. However in terms of fuel & energy that dollar is worth 30cents.
YouBetterBeSavingSomethingBesidesDollars
I paid $2.49/gallon yesterday. In 1967, I paid about $0.26 or $0.28/gallon.
That's almost a 10X change. The same thing has happened with housing. Good thing I didn't save everything in dollars.
I knew it would happen.
removing. Too much strategy made public.
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