Gold standard returning soon?

gecko109

If you owned a credit card where there was absolutely no limit, and the minimum monthly payment was $5, just exactly how high of a bill would you eventually run up?

This is almost precisely what our government is doing right now. They are spending money that doesnt even exist on things that are not needed. There is no restraint on their part, because they know that there is no true accountability. These debts will never be paid off....could never be paid off, ever. So why not just live it up now while there are still enough suckers to accept our financial irresponsibility?

Imagine a stack of hundred dollar bills. Not a line end to end, but a STACK. Now imagine the stack is laying on its side along a highway. You would have to drive for 670 miles.....yes, thats 670 MILES before the stack was done. That would equal "just" 1 trillion dollars. The U.S. is currently running a 12 trillion defecit. That is a stack of $100 bills...STACK...that runs 6,700 miles! That is a sum of money that just cant be paid back.

So, whats the big deal? Well, there are just 3 possible outcomes in this scenario.

1) The U.S. prints non stop for years to pay back its debt. This of course devalues your money by a factor of about 6-1. No good.

2) The U.S. cuts all non essential spending (good luck getting just 3 people to agree on what is and isnt "essential", let alone congress to all agree), and starts to produce more goods for export. In a dream world, this is the answer, but has as much chance of occuring as an unlocked bike going untouched for 2 hours in Brooklyn.

3) The U.S. defaults on its financial obligations to the rest of the world, and creates a new type of currency (since the current one is instantly worthless in a default). This is the most likely of the 3 outcomes to happen. However, any "new" form of currency will have to have a key element in order to make it even somewhat credible. Afterall, who wants the new, when the gov just told you the old was no good anymore?

Outcome #3 will be achieved with the return to a metals standard. This country owns the most gold by far in the world today. Gold will need to be monetized to cover a new currency (perhaps silver as well in a bimetallic system) in order to restore any confidence in a new monetary system. When this transition occurs, it will be very beneficial to own some physical gold and silver.

You cannot change the policies of this country through voting...thats been proven for the past 100 years. Political candidates run on platforms popular among the majority of the people, not on what they personally believe in. Since you cannot change policy, you will need to try to at least protect yourself and family. You can do this with a little bit of gold and silver bullion. Put the real wealth back into YOUR hands, and dump that green piece of paper right back onto the FED. We no longer want, nor trust that private organization's product any longer.....show the world you wont be scammed anymore!

1jester

What makes you so confident the US still has any gold to back the new currency?

trozau

We have a debt-based monetary system. The more debt, the better (more money for commerce). When debt is repaid (0 debt), it means no money. And that is why the powers that be will protect the status quo.

edmundfitzgerald

Isn't deficit spending backed by both parties ?

roadrunner

Some kind of %gold standard will return someday. But no one in the power structure wants it....no one.....well, except Ron Paul, Jim Bunning, and a few others.

The goal right now by the major players/insiders is to game the current system for every dollar they can get, ultimately taking out tens of TRILLIONs in the end. Eventually the system will fall apart under its own weight and liabilities. Then, and only because there is no other alternative left, will an asset banked monetary unit be created. It may be the first unified world currency, but there will be some sort of realistic backing behind it.

Since this will probably take years it will allow the PTB ample time to slowly bankroll all the hard assets they can gather (gold, energy, water, ags, etc.) while trading away their paper assets. When the transistion is ready to be made these guys will have all the hard assets lined up including major share holdings in key hard asset companies.....while J6P is holding instantly devalued FRN's plus shares in generally worthless ETF's, bonds, index funds, funds loaded with illiquid derivatives, etc. J6P's IRA/401K may be needed as a patriotic gesture to help "fund" the transition. Maybe via a TBond drive.

roadrunner

InYHWHWeTrust

<< <i>.... J6P's IRA/401K may be needed as a patriotic gesture to help "fund" the transition. Maybe via a TBond drive.

roadrunner >>



RR is dead on (again). Pitchforks 'might' come out then (or if cable got shut off -- per Justacommeman's post on the other thread.) Even if one thinks 'it can never happen here', man, I hope you are right, but at least the possibility was offered for consideration. I don't think this is just bogeyman hype. Think about it.

secondrepublic

Just remember -- the billions that Wall Street types are making every year in salaries, bonuses, profits have to come from somewhere. Joe sixpack is the one ultimately paying for all this.

KUCH

Maybe Joe6Pack should stop footing the bill.

cohodk

<< <i>Maybe Joe6Pack should stop footing the bill. >>



Exactly. If you dont like them spending your tax dollars, then stop sending them. They cant put 300 million people in jail. Stand up people.