FORBES: Signs of the Gold Standard are Emerging from Germany
Submitted by jg10289 on Thu, 09/27/2012 - 15:36Forbes: Good money is not only a counsel of rectitude. It is critical path to restoring vibrant prosperity and social health. Erhard (as previously noted here) reprised the characterization of Pietrre and Rueff in his memoir Prosperity Through Competition 
Germany’s economic miracle “began as the clocks struck on the day of currency reform. Only an eye-witness can give an account of the sudden effect which currency reform had on the size of stocks and the wealth of goods on display. Shops filled with goods from one day to the next; the factories began to work. On the eve of currency reform the Germans were aimlessly wandering about their towns in search of a few additional items of food. A day later they thought of nothing but producing them. One day apathy was mirrored in their faces while on the next a whole nation looked hopefully into the future.”
http://www.forbes.com/sites/ralphbenko/2012/09/24/signs-of-t...
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And by the way
the only few times throughout history that the gov't actually printed its own notes, the private banks stole the power back. Example: Lincoln's Greenbacks -- they assassinated him and took the power back into their own hands. There is nothing they hate more than the inability to control the issuance of money. Again, if we are pegged to gold and gold only, they have the capital to buy up and corner the market. Look into the depression in the late 1800's because of outlawing silver.
Let them crash it ... then buy cheap
They can't keep it artificially depressed forever.
"We have allowed our nation to be over-taxed, over-regulated, and overrun by bureaucrats. The founders would be ashamed of us for what we are putting up with."
-Ron Paul
Why just Gold?
Why does it have to be a "Gold" standard? If people wish to deposit gold, silver, platinum, or even copper and iron and banks are willing to accept it for dollars, it should be allowed.
I will tell you why.
If any medium (less valuable than gold) is recognized as a payment to government, say fees & taxes, then such a money will drive any other types of money from the market. The same will happen if conversion between different moneys is allowed on a fixed basis (or market floating estimations were unwarranted) - the "bad" (cheaper) money will drive out the rest.
The only possible scenario is parallel non-convertible currencies. It makes since to kill paper, but does not make sense to compete between themselves unless a necessity requires as such. It becomes redundant in some way and not universal in another.
PS "drive out" means people will save "good" money for a rainy day while using "bad" money instead.
Prescience500 is right
money should not be limited to just one rare commodity. That's economic suicide. The rich (banking elite, etc) have cornered the market (bought up) of gold in the past, and they would do it again. Money must serve the interest of the people. This issue is what inspired the rise to "free silver" in the late 1800s depression. It should be competing, not concentrated. Deconsolidation is always key (its the theme behind the whole constitution). If they corner gold, we can use silver, if they corner silver, we can use copper, etc.
"The energy required to
"The energy required to bombard the lead atoms into bismuth, which would decay into gold, costs much more than the gold would be worth."
That's not 'out of thin air'...
"When the people find that they can vote themselves money, that will herald the end of the republic." Ben Franklin
Why the world is in deep trouble - with no easy way out...
I'm no expert on finances, economics and the gold standard but here's how I see it.
Civilization blew it centuries ago when it invented money NOT based on a commodity standard.
Our founders tried to make our money based on gold and silver which traditionally (for several reasons) has been accepted as a medium of exchange between humans.
BUT NOW WE'RE TOO FAR GONE.
There are ONLY 2 possible future outcomes regarding monetary policy:
1. A CONTROLLED return to a metal standard for money. And even THAT will cause untold chaos and disruption for a period of time. Because there is too much worthless money in society right now, the cure will be very painful as we would have to figure out how to connect our currency to a supply of gold/silver.
3. An UN-CONTROLLED correction (as happened in Weimar Germany when the German Mark went worthless). In this scenario it becomes an appocalyptic event where only the strong survive. Civil obedience will break down and no amount of law-enforcement will be able to stop it.
Ron Paul has said over and over that one of these 2 scenarios MUST occur. Even though they can probably prop up the lie for a long time yet.
Either way, the end result WILL be a return to at least some semblence of a metal-backed currency or just the precious metals themselves.
THIS is why it's SO VITALLY IMPORTANT to own some gold and silver. THAT is the main lesson to take away from what is going on around us.
This may not even happen in our lifetimes, but it appears more likely that it will.
It will probably begin in Europe where they are learning the folly of the socialist idea of one currency for so many countries. And not even THAT is backed by metals.
THAT is going to end and Germany will be the catalyst.
When the Germans get tired of funding the lazy countries (which I don't even have to name), they will bow out of the Euro and that will be the END of it (most-likely resulting in some kind of war).
As for us, the politicians and central bankers will kick the can down the road as long as possible past the Euro collapse.
Until that time, although it would be foolish to put all your assets not precious metals, we should aquire as much as practical and personally affordable.
Anyway, that's my 2 cents worth which probably isn't worth even that.
"We have allowed our nation to be over-taxed, over-regulated, and overrun by bureaucrats. The founders would be ashamed of us for what we are putting up with."
-Ron Paul
Why can't the price of gold be manipulated?
The price of gold will be manipulated just like a fiat currency. Where is the difference?
Grace be to you, and peace, from God our Father, and from the Lord Jesus Christ.
In The LORD Jesus Christ;
Dave
"where the Spirit of the LORD is, there is liberty." 2 Cor. 3:17
http://www.lionandlambministry.com
Yes, the price of gold can be manipulated
and there is compelling evidence that is today.
The single greatest difference is that the quantity of gold is absolutely limited, but the quantity of fiat currency is absolutely unlimited.
The full answer to your question is much longer than this forum lends itself to. To start with, I refer you to "The Case For Gold", a minority report of the U.S. Gold Commission, by Rep. Ron Paul, first published in 1983.
Magna est veritas, et prevalebit. Truth is most powerful, and will ultimately prevail.
It is, obviously, limited BUT...
NO ONE knows that limit. And therein lies the problem. And that makes it just as easy to manipulate as paper money
Grace be to you, and peace, from God our Father, and from the Lord Jesus Christ.
In The LORD Jesus Christ;
Dave
"where the Spirit of the LORD is, there is liberty." 2 Cor. 3:17
http://www.lionandlambministry.com
The difference is the
The difference is the government can't create gold out of thin air.
"When governments fear the people, there is liberty. When the people fear the government, there is tyranny." - Thomas Jefferson
Don't be so sure...
http://voices.yahoo.com/from-alchemy-physics-converting-lead...
"The energy required to
"The energy required to bombard the lead atoms into bismuth, which would decay into gold, costs much more than the gold would be worth."
That's not 'out of thin air'...
"When the people find that they can vote themselves money, that will herald the end of the republic." Ben Franklin
Don't forget that the German
Don't forget that the German economic miracle was based on the Austrian economics of Wilhelm Rökpe.
Wait, who's been hoarding all the gold for decades?
Oh, that's right, the Elites have. So even with a Gold Standard, the Elites still have the upper hand. Perhaps a much closer look at a Resource-based Economy is needed. The time seems fitting since the Elite's attempts at taking over the Earth's resources with companies like Monsanto are falling apart?
Also, apparently the amount of actual gold on the planet is greatly understated. I've heard there's actually so much gold on hand to make everyone on Earth wealthy. All 7 Billion of us.
“The lips of Wisdom are closed except to the ears of Understanding.”—The Kybalion
"We are not human beings having a spiritual experience; we are spiritual beings having a human experience"—Pierre Teilhard de Chardin
if everyone's rich, won't the
if everyone's rich, won't the prices just go up?
http://www.youtube.com/watch?v=bFxvy9XyUtg
Gold defeats special interests
Gold defeats special interests that feed off of inflation. It is really a way to destroy a cycle where the rich buy legislators and bankers, who inflate the currency, which is put into circulation through the wealthy allowing them the extra capital before the eventual price increases make the extra money moot. The average Joe eventually gets a pay raise, but only after price increases eat up his paycheck. Gold short circuits the cycle since it cannot be created. In truth there is nothign special about gold other then that its quantity is rather limited, and it cannot be created in a hurry. Anything else that met this criteria could be used as a hard currency as well, and with good effect.
Josh Brueggen
Engineer
Entrepreneur
Gardener
Jack of all Trades
Precinct Commiteeman Precinct 5 Rock Island Co Illinois
Well, no doubt it's a step in the right direction I guess
Thank you for your insight Josh.
“The lips of Wisdom are closed except to the ears of Understanding.”—The Kybalion
"We are not human beings having a spiritual experience; we are spiritual beings having a human experience"—Pierre Teilhard de Chardin
If the gold is
concentrated in the hands of a few, then the rest of the gold in the market would have a higher value. Gold is finite, and supply and demand takes effect. Kind of like deflation.
“When a well-packaged web of lies has been sold gradually to the masses over generations, the truth will seem utterly preposterous and its speaker a raving lunatic.” – Dresden James