Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.
Has nothing to do with backing the currency with gold as stated in the article. It is only about keeping at least 20% of national reserves in hard gold.
<< <i>Has nothing to do with backing the currency with gold as stated in the article. It is only about keeping at least 20% of national reserves in hard gold. >>
Which is essentially the same thing as backing your national currency with gold reserves. The gold is there to pay down debts if your currency gets into trouble.
<< <i>Has nothing to do with backing the currency with gold as stated in the article. It is only about keeping at least 20% of national reserves in hard gold. >>
Which is essentially the same thing as backing your national currency with gold reserves. The gold is there to pay down debts if your currency gets into trouble. >>
Disagree. A currency backed by gold can be exchanged for gold such as the dollar before Nixon closed the "gold window." While gold could be used to pay down debt in a currency crisis, chances are it will not be used on existing debt. It will most likely be reserved for future purchases since the existing currency would not be accepted.
While the US has gold reserves they do not back the dollar. The only thing backing the dollar is faith that the next guy will accept if for payment. Inflation is nothing more than that guy wanting more dollars for the same good or service because he knows he will need more of them to purchase goods or services for himself. A currency is not backed by gold unless specifically pegged to gold as was the US dollar pre-Nixon.
mhammerman
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Give Me Liberty or Give Me Debt
<< <i>Has nothing to do with backing the currency with gold as stated in the article. It is only about keeping at least 20% of national reserves in hard gold. >>
Which is essentially the same thing as backing your national currency with gold reserves. The gold is there to pay down debts if your currency gets into trouble.
<< <i>
<< <i>Has nothing to do with backing the currency with gold as stated in the article. It is only about keeping at least 20% of national reserves in hard gold. >>
Which is essentially the same thing as backing your national currency with gold reserves. The gold is there to pay down debts if your currency gets into trouble. >>
Disagree. A currency backed by gold can be exchanged for gold such as the dollar before Nixon closed the "gold window." While gold could be used to pay down debt in a currency crisis, chances are it will not be used on existing debt. It will most likely be reserved for future purchases since the existing currency would not be accepted.
While the US has gold reserves they do not back the dollar. The only thing backing the dollar is faith that the next guy will accept if for payment. Inflation is nothing more than that guy wanting more dollars for the same good or service because he knows he will need more of them to purchase goods or services for himself. A currency is not backed by gold unless specifically pegged to gold as was the US dollar pre-Nixon.
Give Me Liberty or Give Me Debt
Give Me Liberty or Give Me Debt