-6 votes

Here is an interesting video I came across today. It explains how much gold the US would need if we went to a gold standard.

I was just surprised to see mainstream media even discussing this... Enjoy.

Bloomberg.com:
http://www.bloomberg.com/video/this-is-what-going-to-the-gol...

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fireant's picture

So, the only option is to increase gold supply? I suppose they

claim to be objective journalists too.
Say Boobberg! It's just possible the price of gold could go up since there ain't enough gold to go around at current prices!

Undo what Wilson did

we were on the gold standard

we were on the gold standard up until 1971. Isn't that proof that it can work. We had planes, trains, and automobiles in 1971. We were not living in the stone age. We could also back our currency with silver or other precious metals or maybe even with oil or corn. Anything would be better than backing our green paper with war if any nation dares to use anything else to buy oil with.

Backing a paper currency with anything is a recipe for disaster.

It's already been proven with the Federal Reserve Note.

The problem isn't lack of backing. It's using paper instead of gold or silver.

This is laughable

There is absolutely no reason why we must return to the gold standard at the current market price. To do so would, as the video suggests, require either a massive deflation (very stupid policy) or a massive gold purchase (impossible).

Rather, what we should do is take the gold reserves, divide by outstanding dollars, and make that the amount of gold backing each dollar. Then there is no need for deflation or any increase in the gold reserve. Gold gets revalued upwards to reflect past inflation.

Of course, it's no surprise that Bankburg would ignore the obvious method for returning to the gold standard in order to highlight the ludicrous and stupid method, so as to make the gold standard look bad.

"Alas! I believe in the virtue of birds. And it only takes a feather for me to die laughing."

Nope - no need to do that EITHER. Just repeal the legal tender

laws and start circulating gold and silver coin.

The gold and silver will eventually push the "price" of paper currency so far out that people will stop using it fast.

No need to set any exchange ratio or anything.

Just mint real coins either with the old dollar standard of 371.25 grains .999 pure or mint .999 pure coins in grams or fractions of troy ounces and don't stamp any denomination on them.

Either way - it's quick, easy, and the least painful method - and all free market.

.

Many people don't even realize that we are asking to repeal legal tender laws which would at least allow us to use gold and silver if we want.

Many people's minds think so small that they don't understand that the market could allow gold, silver, copper, barter, etc... during transactions so we don't need to have a set gold price to dollar.

These people

They seem to think that all of our current wealth is real, and that economic actors are incapable of assessing the true value of gold relative to its utility and scarcity.

What would happen if gold-backed currency was used, i.e. if gold became one-half of every transaction? Here's a hint: gold would become more useful; there would be at least one new thing you could do with gold, and all the old options would still be available. People would be willing to pay more for it than they do now. It would not continue to sell at ca. $1600/oz. There would be some hiccups, but things would equilibrate pretty quickly.

A gold standard could work with 10% of the amount we currently have. The gold dollar would just be 10x more valuable.

Guess they forgot about silver dollars and copper pennies

All you have to do is read the name, 'Bloomberg'.

This is the guy who promised to rid America's streets of guns for Mexico (in Spanish no less)--all while he was gearing up for a potential US Presidential run.

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Fight the Ron Paul blackout on the Daily Paul (now 'P AU L'), put his removed poster back as your avatar:
http://www.mediafire.com/?9ir62bp8nshv83m

You don't need much to be on gold standard.

In Article 1 Section 8, US Constitution - "To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;"

Congress can set the value of the gold coinage that the US Treasury mints.

Congress can eliminate the national debt in less than 5 minutes with a vote to set the conversion price of one $50 Gold Eagle equal to 200 trillion Federal Reserve Notes if it wanted.

The disinformation campaign begins!

I can't tell you how many stupid arguments I've had with people lately about the gold standard.

They take it so literal, just like this video does.

Trying to explain the concept of sound money to these brainwashed imbeciles is enough to drive me to drink. UGH!

You

You are correct the standard could be 10%- 20% -30% what ever its still better then notta.