Why does the government not just raise the SPOT price of Gold? I mean they did it in 1933... why no
mrpaseo
Posts: 4,753 ✭✭✭
I realize the spot price is effected all over the world, maybe it's time for a summit meeting and they all agree that gold goes to say $3000 per oz... Then they fiat money that they have all been pumping out would all be backed by gold again...
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Only when central banks hold most of the gold will they seek to raise its price, just like after FDR took most of it from US citizens.
Natural forces of supply and demand are the best regulators on earth.
<< <i>I realize the spot price is effected all over the world, maybe it's time for a summit meeting and they all agree that gold goes to say $3000 per oz... Then they fiat money that they have all been pumping out would all be backed by gold again... >>
I think you left of a zero
Knowledge is the enemy of fear
Though that is what Roosevelt did back in the thirties... remember that he did not do so until they pulled in much of the gold out of the publics hands.
<< <i>What would the purpose of that be? >>
To get back on the gold standard of course.
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<< <i>What would the purpose of that be? >>
To get back on the gold standard of course. >>
Why would you want to do that? It didn't work while we had it in place, otherwise it would still be in place.
It worked fine for regular people.
<< <i>What would the purpose of that be? >>
So that I could sell the gold I have and double my money.
You can't successfully prosecute major wars or a half century of small wars with a gold standard. There is not enough gold to pay for it. You can't ask our politicians to give up murdering people in other countries .
<< <i>I realize the spot price is effected all over the world, maybe it's time for a summit meeting and they all agree that gold goes to say $3000 per oz... Then they fiat money that they have all been pumping out would all be backed by gold again... >>
The problem being that they would continue pumping out fiat money.
My Adolph A. Weinman signature
I think I know the answer to the FEDs printing problem. It needs to get all the greenbacks out of the system, right. Well, why not create a bubble in gold. Every dollar that buys gold is a dollar out of the system. Maybe (hopefully), this leads to a bubble in gold. So, yippee, maybe gold goes to $5000, or even $10,000!!! Then it collapses. Dollars out of system, another bubble burst, and all is well.
Makes a lot more sense than the FED trying to supress the price of gold, no? Would eliminate China's excess reserve problem also.
Knowledge is the enemy of fear
It pulled a fortune of money on paper out of the system.
A lot of new printing didn't instantly hyper-inflate things because of the vacuum left by the fortune that was lost.
It did change hands, things like bail outs and QE and spending distributed it.
<< <i>I realize the spot price is effected all over the world, maybe it's time for a summit meeting and they all agree that gold goes to say $3000 per oz...... >>
Who's "they"?
I know, I know, our Masters, I say F'em!
Don’t Dismiss The Possibility Of Gold Confiscation to get that Floor back in Gold ;->
Can anyone imagine monthly welfare or other government benefits being paid as a stack of double eagles?
Has any government ever paid benefits under a gold standard? They would never promise anyone a cent in the first place if they couldn't dump the bill on future generations via inflation and currency devaluation.
A welfare /warfare state precludes any form of honest money.
Liberty: Parent of Science & Industry
Every one of those Casey articles ends with him saying to invest outside the US and he will help . If the SHTF for real of what use would gold or cash in a foreign country be?
Thanks doug for encouraging me to send everything of value away where I can't get it when I need it without flying overseas.
A safety deposit box in Canada might be the only way I'd offshore anything unless traveling abroad was part of my work .
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<< <i>What would the purpose of that be? >>
To get back on the gold standard of course. >>
We will never go back to the gold standard; it would KILL the economy, because the economy could only expand relative to the amount of new gold produced.
A gold standard wouldn't kill the economy, because lending would occur on the basis of finite agreements that can't be manipulated in someone else's favor simply by creating more of it. A legal agreement would have to be enforced per the terms of the agreement, and if you didn't follow the payment terms or any other terms, there would be a legal issue.
A big contract might be for $10,000 instead of $10,000,000,000 - but the dollars might be valued a little differently. Expansion is usually done via lending, and there's no reason that lending wouldn't occur.
Some people confuse a fiat system with fractional reserve banking. We have both right now. Both impart significant power and profit to the banks. All a gold standard does is to enforce honest accounting, because if you don't have the stuff when you've said that you do - you are in trouble, and should be. A fractional reserve banking system can still function within a gold standard, the only caveat being that you have to have honest bankers. It's virtually self-regulating. If someone cheats, send Guido.
I knew it would happen.
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<< <i>What would the purpose of that be? >>
To get back on the gold standard of course. >>
We will never go back to the gold standard; it would KILL the economy, because the economy could only expand relative to the amount of new gold produced. >>
Whats that limit it to? 1 % , 2% ??? that's all we have now and the numbers aren't even close to honest . I'll take an honest 1 or 2% year over year any day .
What do you want ? 4% growth ? Whats the point of 4% growth with 4% inflation? Wages have been stagnant for 40 years and inflation is a continuous tax on savings.
Give a me gold standard with slow but steady price deflation and minimal growth and I'll be happy. Make my dollar worth more a year from now and I won't complain.
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<< <i>I realize the spot price is effected all over the world, maybe it's time for a summit meeting and they all agree that gold goes to say $3000 per oz...... >>
Who's "they"?
I know, I know, our Masters, I say F'em!
Don’t Dismiss The Possibility Of Gold Confiscation to get that Floor back in Gold ;-> >>
Well, by "they" I mean those that attend the summit meeting
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<< <i>
<< <i>
<< <i>What would the purpose of that be? >>
To get back on the gold standard of course. >>
We will never go back to the gold standard; it would KILL the economy, because the economy could only expand relative to the amount of new gold produced. >>
Whats that limit it to? 1 % , 2% ??? that's all we have now and the numbers aren't even close to honest . I'll take an honest 1 or 2% year over year any day .
What do you want ? 4% growth ? Whats the point of 4% growth with 4% inflation? Wages have been stagnant for 40 years and inflation is a continuous tax on savings.
Give a me gold standard with slow but steady price deflation and minimal growth and I'll be happy. Make my dollar worth more a year from now and I won't complain. >>
Even at $1500/ounce, we would need about 3300 metric tons of gold to permit a 1% increase in the economy; the problem is, the US only produces about 230 metric tons a year.
<< <i>I think the housing bubble did something like getting greenbacks out of the system.
It pulled a fortune of money on paper out of the system.
A lot of new printing didn't instantly hyper-inflate things because of the vacuum left by the fortune that was lost.
It did change hands, things like bail outs and QE and spending distributed it. >>
Similar but bug difference. The housing bubble destroyed s lot of the money the banks created since every dollar the FED created was leveraged 30,40,50 times. The purchase of gold isn't really done via leverage or borrowed money so basically every dollar that goes into gold is a dollar directly from the FED taken from the system .
The FED wants a bubble in gold for 2 reasons.
1. It takes dollars out if the system.
2. The massive psychological toll when gold collapses will be felt for another generation or two. Thus wl create question as to the need for a gild back currency and of gold's ultimate value as a currency. This will ensure the game goes on for many, many more years.
Knowledge is the enemy of fear