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A question for those of you who claim a gold backed currency could not work.

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  • derrybderryb Posts: 36,834 ✭✭✭✭✭
    Gold standard did work quite well in restraining government spending right up until it disappeared. Money for nothing has proven to be a train wreck.

    Natural forces of supply and demand are the best regulators on earth.

  • derrybderryb Posts: 36,834 ✭✭✭✭✭
    what happened to gecko who started this thread?

    Natural forces of supply and demand are the best regulators on earth.

  • cohodkcohodk Posts: 19,155 ✭✭✭✭✭


    << <i>$3.86 worth of gold for $10

    or for $8.00 if you buy 10 or more

    Not as bad as cohodk would have you think, but not as good as the marketers would have you think.

    Interesting idea if scaling up production reduces the costs significantly.

    Not that it would ever happen. >>




    Is my math wrong? Supposedly these contain 1/20 gram of 24k gold. There are 31 grams in an ounce. So 20 of these funny money things per gram or 620 per ounce. Gold at $1205 means each contains $1.94 worth of gold. I rounded up as I do not like to state extremes to prove a point.

    I see now...the article talks about 1/10 and 1/20 gram but the advertisement for these "novelty items", is 1/10 gram, in which case yes each would contain about $3.90 worth of gold.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • cohodkcohodk Posts: 19,155 ✭✭✭✭✭


    << <i>Presented as proof that gold can actually be used as a currency, the technology is there. Why back currency when you can have it actually contain the metal just as coins do. If used, they would not have to be purchased any more than you have to purchase dollar bills - the FED would just print them only there would be some actual real cost. Of course this real cost is the whole idea behind backing a currency, to create restraint. >>



    In real life a paper dollar gets worn out. What happens to these when they wear out? And if its worn out would it still contain 1/10 gram of gold? What happens if there is a disagreement in the value of gold contained within?
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • jmski52jmski52 Posts: 22,869 ✭✭✭✭✭
    If one 1/20th oz note is worth $1.94, it could always be swapped at the bank for a fresh one if wear became an issue. I don't recall anyone ever taking a worn Barber Half to the bank to get a new Frankie because of some wear.

    Now, a $500 note might be a different story..............
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • BaleyBaley Posts: 22,661 ✭✭✭✭✭
    A question for those who claim a wampum standard would not work

    Liberty: Parent of Science & Industry

  • derrybderryb Posts: 36,834 ✭✭✭✭✭
    an oil backed currency might encourage conserving some oil. image

    Natural forces of supply and demand are the best regulators on earth.

  • jmski52jmski52 Posts: 22,869 ✭✭✭✭✭
    99.75% of all politicians worldwide would need to undergo a significant "re-education" process. I nominate G. Gordon Liddy to run such a program.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
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