What if... (Future one world money)

mrpaseo

I have read that most of the world used USD as a backing for their currency since we were on the Gold standard. We then made the decision to go off the Gold standard which in turn, caused the entire world to go off the Gold standard.

I do not see a way to back track and go back to a Gold standard unless the entire world does (No one will trust us again after we already devalued our own fiat currency by mass producing it exponentially). That said, what if...

What if there was a world currency that must be on a gold standard (Exchangeable for physical gold). Then, every currency could be balanced off of this new currency so in effect, the USD would still be usable, but as currencies are traded they would be traded against the new currency.

How could something like this work?

or

Throw that idea to the wolves, what is a way that we (The world) could recover from this Fiatsco and get back on track?

Open discussion, all opinions welcomed,
Ray

tneig

We could not go back to the gold standard. We print too much anyway vs the amount of gold to make it viable.
Same likely across the world. It's just a memory now and for the history books. Maybe if some small country starting
out had gold backing of their paper money, it could exist for 'awhile.' Perhaps if this nation fell, and several regions restarted
using PMs as the base money. But would eventually turn back into fiat anyway, because printing allows you to have more.

The monetary systems all float now and are all relatively based against each other. If one fails and drops out, another will be initiated
and fold back into the tenuous floating system. The top nations jockey for the top spots.

No system is really backed by anything that actually backs every bill with some equivalent other than the temporary good faith.
Its like a huge legal ponzi scheme, where you can be in it and do fine, but don't want to be the last one holding when it goes down.
Only on a small scale can something '[physically worth it' be traded such as food, bullets, etc.

But we are now in an electronic world. With transactions "online" who knows where or what the money system will evolve too..

But the everyday person still thinks the paper bill itself is worth something, as if reaching your hands into a bucket of gold.
They think the paper has value and the bill itself is the gold. And as a symbol, then very well, it may be so.
However, its just a 'Note' with buying power within an agreed upon system and time frame.

That's why the government isn't really that worried about the national debt and money printing. They will just keep managing and
manipulating the juggling act, and if need be create a new system as needed. They won't get hurt because it will fall on the citizens, where
some will fall and absorb the loss and others will make out.

Once you realize what its all about and that its only paper, you can expand that to include PMs as well. Its all 'relative systems' that depend on someone else
considering it to have value or buying power. Gold and silver may outlast any one fiat system, but its still the same principle.

Utilize the current systems to the fullest, yet be nimble enough to jump on the next passing trolley if you have too..

mrpaseo

Very well said, thank you. The only issue now is figuring which wave to catch. Is it the Bitcoin wave? Only time will tell.

ricko

I will stay away from bitcoins.... I believe that is a disaster in the making. Temporary fever.... I will stick with what, in our lifetimes, will likely always be of value.... gold and silver. Cheers, RickO

Mesquite

This is worth a read.

Gold backed currency.

derryb

the ultimate failure of fiat currencies is the abuse they take at the hands of those who determine their cost (cost of debt) and their supply. The US dollar could last forever given responsible management - ZIRP and QE are destroying it. One must wonder if this is in some way intentional; in all seriousness it's hard to imagine that the decision makers are idiots.

Baley

it's hard to imagine that the decision makers are idiots

Yet many folks insist that they are, and imply that they (the folks) know more about economics and what would be best for the country than the governors of the federal reserve, the people at the treasury dept, and about half of the academic and professional economists worldwide

Bernanke warns of important risks

mrpaseo

<< <i> it's hard to imagine that the decision makers are idiots

Yet many folks insist that they are, and imply that they (the folks) know more about economics and what would be best for the country than the governors of the federal reserve, the people at the treasury dept, and about half of the academic and professional economists worldwide. >>




Ironically this is how my stance has been for the past 20 years, meaning I chose not to judge the workings of the government as I do not fully understand the decisions that are made and why they are made. I like to think that the powers that be make decisions for the betterment of the human race. Originally I thought they made decision for the betterment of the people of the USA but I am learning how integrated we are as a planet rather than just one nation.

I know there is corruption, it's everywhere. I will do my best to try to keep the same thought process that there are good people, to include in the places where they can make a difference.


One thing that has always got under my skin is when people sit in their comfy chair at home and point out all the issues that others make while offering no solutions or doing nothing about the problems that we have. (I believe they are refereed to as "Fear-mongers"

One downfall of being in charge is having to make certain decisions. When we are forced to make a decision that knowingly will end in ill results, knowing that this decision was the best that we had at the moment.

I feel that one of our downfalls is that we (The government) make short term decisions for long term problems. This is not an actual decision but the process to reach decisions. If we could somehow make better long term decisions, we may just become a great nation again. Until then, we will continue to make decisions that future Presidents, Congress and House of Reps will have to fix. If we are always trying to fix the errors of past government, how will we find the time to make the best decisions for today's problems?

That said, I can not imagine that the decisions or the "Glide Path" if you will, of our future as a nation is not somehow determined at least 10 years out and for all I know... we could very well be making these long term decisions and they are what's best for the nation.

Sorry about the ramblings,
Ray