Why gold and silver is not the answerSubmitted by goldisnotheanswer on Fri, 04/08/2011 - 20:11
First off I respect Ron Paul. I would vote for him if I had the chance but I have reservations about going back to the gold standard. If anyone can explain to me why it would be better than having our elected government issue debt free money then I am more than willing to listen. Please back up your claims by facts instead of just saying gold is better.
Here are some of my main concerns.
1. Our nation imports more than it exports. What would stop other countries from simply hoarding our gold back dollars and then eventually remitting those dollars for gold? Eventually we would have no money or gold.
2. A gold back currency would encourage saving over spending. However, most people in this country have loans. New money has to be issued(borrowed)into circulation at a constant rate to stave off an economic collapse. If a gold standard came into play where would new money come from to pay off these loans?
3. Does the government even own any gold to remit dollars for gold?
4. If no other country goes to a gold standard how would the United States fair out in a global economy? The Chinese could in theory devalue the currency further and flood our markets with cheap imports and simply take the gold.
5. I have read comments on here how the government forces us to accept federal reserve money. Is there a law that states you must use FRN in trade. I believe people can still barter and you can store your wealth in gold, silver, real estate, or what ever you wish.
6. A private corporation in theory could mine gold. What if they found a deposit that equaled what the federal government has to remit gold? Would they not control half the wealth in this country?
Please do not bash me. I do not believe gold is the answer at this time, but a solid argument could sway me to support it.